Nokia (NOK) Stock Reaches 16-Year Peak as AI Infrastructure Drives Q1 Beat

Key Highlights

• First-quarter comparable operating profit surged 54% to €281M, surpassing Wall Street expectations
• Revenue from AI and cloud infrastructure customers increased 49%, with €1B in fresh orders secured
• The company elevated its Network Infrastructure outlook to 12–14% growth and Optical+IP guidance to 18–20%
• Shares reached their highest point since 2010, climbing nearly 7% during Helsinki trading
• Northland lifted its target to $13; major institutional investors including Calamos, Millennium, and Goldman Sachs expanded stakes

The Finnish telecommunications equipment manufacturer reached a 16-year peak in share price following robust first-quarter results, powered by surging demand for AI and optical networking infrastructure.

Nokia Oyj, NOK

Comparable operating profit for the first quarter of 2026 reached €281 million, representing a 54% increase from the prior year and exceeding the €250 million analyst consensus. Total net sales hit €4.5 billion, reflecting 4% annual growth.

Earnings per share aligned with the $0.06 Wall Street estimate. Revenue totaling $5.27 billion significantly exceeded analyst projections of $4.59 billion.

Shares climbed nearly 7% during early trading in Helsinki on April 23, marking the highest valuation since April 2010. On the New York Stock Exchange, NOK advanced 1.4% to $10.48 on Friday, within its 52-week trading range of $4.00 to $10.90.

Revenue generated from AI and cloud infrastructure customers expanded 49% during the three-month period. The company secured €1 billion in new AI and cloud contracts, achieving a book-to-bill ratio exceeding 1.0.

Expanded AI Market Opportunity Projections

Nokia updated its addressable market forecast for AI and cloud infrastructure to reflect a 27% compound annual growth rate spanning 2025 through 2028. This represents a substantial increase from the 16% projection presented during its November 2025 investor presentation.

Guidance for the Network Infrastructure division was elevated to 12–14% growth in 2026, versus the previous 6–8% forecast. The Optical and IP segment outlook rose to 18–20%.

The Optical Networks division posted 20% revenue expansion in Q1. Integration of Infinera is proceeding faster than anticipated, and the company introduced an updated product strategy featuring a multi-rail amplifier and modular optical engines.

Chief Executive Justin Hotard noted the organization is “currently tracking somewhat above the mid-point” of its annual comparable operating profit guidance range of €2.0–2.5 billion.

A second indium-phosphide manufacturing facility in San Jose is scheduled to begin production later this year to increase optical component capacity.

Wall Street Upgrades and Institutional Investment

Northland elevated its price objective on NOK to $13 from $10, pointing to accelerating demand for AI optical connectivity solutions. Bank of America upgraded shares to “buy” with a $12.40 target in early April.

The equity currently carries a “Moderate Buy” consensus rating from 17 Wall Street analysts, comprising 10 buy recommendations, 6 hold ratings, and 1 sell rating. The mean price target stands at $8.83, although multiple recent targets have surpassed this benchmark.

Regarding institutional activity, Calamos Advisors expanded its NOK holdings by 28.1% during Q4 to approximately 1.95 million shares. Millennium Management increased its position by more than 6,500% in Q1, adding nearly 2.8 million shares. Goldman Sachs acquired just over 1 million shares in Q1, elevating its total stake to 12.55 million.

The company also increased its quarterly dividend to $0.0468, up from $0.04. The annualized distribution of $0.19 translates to approximately 1.8% yield, with a record date of April 28 and distribution scheduled for May 12.

Executives identified semiconductor supply limitations and extended order cycles as potential near-term headwinds. Fixed Networks revenue declined 13%, reflecting intentional portfolio optimization efforts.

Short interest in NOK increased roughly 24% during April to approximately 68.2 million shares, while the days-to-cover metric remains modest at 0.7.

The company’s market capitalization stood at roughly $60 billion as of Friday’s closing bell, with a price-to-earnings ratio of 65.29.