Nokia's AI Leap: Shares Soar on Infrastructure Bets

Nokia's stock has seen a dramatic turnaround in 2026, with shares doubling as investor sentiment shifts towards its role in AI infrastructure. Once viewed as a mature telecom equipment company, Nokia is now recognized for its contributions to data centers, optical networks, and IP routing equipment essential for large cloud providers.

This resurgence is fueled by strong AI-related order intake, with analysts like Bank of America and Jefferies issuing positive ratings and price target increases. Brokerages anticipate continued momentum, expecting higher growth and margin expansion in the coming years based on Nokia's increasing engagement with hyperscalers.

The demand for high-speed networks to manage vast data flows in AI data centers positions Nokia's optical transport and IP networking businesses advantageously. The company has secured significant cloud and AI orders, indicating a substantial backlog that is expected to drive future revenue and profitability.

Despite the positive outlook, risks remain. Nokia's continued success is contingent on sustained AI capital spending by hyperscalers. Additionally, the company must prove its ability to gain market share and maintain a competitive edge against rivals in the rapidly evolving optics and switching sectors.