Nokia Oyj (NOK) has suddenly re-emerged as one of the market’s most compelling telecom infrastructure plays, with shares surging to fresh 52-week highs following a shift in Wall Street sentiment. A bullish upgrade from Bank of America, moving the stock to “Buy” from “Neutral,” ignited a sharp rally, sending Nokia up 9.6% in a single session on Apr. 13 and pushing it above the $10 threshold for the first time this year, while there was a slight intraday pullback in the following session.
Nokia has now exceeded even the Street-high price targets that previously framed investor expectations. Amid this, markets are being forced to reassess whether the company’s transformation into an artificial intelligence (AI)-driven networking and optical infrastructure player can sustain further upside.
Against this backdrop, it remains to be seen whether the next leg of growth, fueled by AI data center demand, optical networking expansion, and hyperscaler spending, is strong enough to justify continued multiple expansion from here.
About Nokia Stock
Nokia Oyj is a global provider of telecommunications infrastructure and network solutions, headquartered in Espoo, Finland. The company has evolved from its legacy handset business into a leading supplier of mobile, fixed, and cloud network technologies, serving telecom operators, enterprises, and governments. Nokia has a market cap of $59.4 billion, positioning it as a large-cap player in the global communications equipment sector.
Nokia has delivered a strong rebound over the past year, with its stock emerging as a clear outperformer within the telecom infrastructure space. Over the past 52 weeks, Nokia has generated returns of 99.12%, reflecting a sharp recovery from depressed levels and a meaningful improvement in investor confidence around its long-term growth trajectory.
That momentum has carried into 2026, with the stock up 58.19% year-to-date (YTD), significantly outpacing broader indices and reinforcing its status as a relative strength name in the sector.
More recently, price action has accelerated sharply, with Nokia breaking out to successive 52-week highs above the $10 level following a series of strong trading sessions. Moreover, the stock hit a 52-week high of $10.56 on Apr. 14, closing the session at $10.35.
The stock is currently trading at a premium to its industry peers at 25.80 times forward price-to-earnings.
Top Line Growth but Continued Pressure on Profitability
Nokia Oyj reported its fourth quarter and full-year 2025 financial results on Jan. 29, 2026. In the fourth quarter, Nokia delivered comparable net sales of €6.1 billion ($7.2 billion), representing about 3% year-over-year (YOY) growth, supported by strength in Network Infrastructure and Mobile Networks, which benefited from rising AI and cloud demand. Gross performance showed some resilience, with comparable gross margin expanding to 48.1% (90 bps YOY), but profitability metrics softened as the company stepped up investments and absorbed integration costs, particularly related to Infinera.
On the bottom line, comparable EPS came in at €0.16, down from €0.18 in the prior-year quarter, reflecting margin compression and higher restructuring charges, while reported EPS was €0.10, compared to €0.15 in the year-ago quarter. Also, comparable operating margin declined 90 basis points year-over-year to 17.3%, highlighting the near-term cost of repositioning the business toward higher-growth segments.
For the full year 2025, Nokia reported net sales of approximately €19.9 billion ($23.5 billion), up 3% YOY, while comparable EPS stood at €0.29, compared to €0.39. Free cash flow for the year totaled €1.5 billion ($1.8 billion), translating to a 72% conversion rate, which sits comfortably within the company’s long-term target framework.
Moreover, the company signaled continued investment in growth areas such as optical networking, AI data center infrastructure, and cloud networking, while cautioning that near-term seasonality and investment intensity, particularly in early 2026, could weigh on margins before benefits materialize.
Analysts predict EPS to rise 21.2% YOY to $0.40 for fiscal 2026, and another 22.5% annually to $0.49 in fiscal 2027.
What Do Analysts Expect for Nokia Stock?
Bank of America upgraded Nokia Oyj to “Buy,” citing the company’s transformation into a leading optical networking player following its Infinera acquisition and leadership changes. The firm sees Nokia benefiting from strong demand tied to AI data center buildouts, with additional upside from margin expansion, software-driven efficiencies, and potential market share gains as European operators replace Huawei and ZTE equipment.
Also, last month, Nokia was upgraded by Goldman Sachs from “Sell” to “Neutral,” reflecting improved confidence in its growth outlook, particularly in Optical and IP Networks tied to AI infrastructure demand.
Overall, NOK has a consensus “Moderate Buy” rating. Of the 18 analysts covering the stock, nine advise a “Strong Buy,” two suggest a “Moderate Buy,” five recommend a “Hold,” and two give it a “Strong Sell” rating.
The recent momentum has pushed the stock to surge past its average analyst price target of $8.86, but with the Street-high price of $12.40, the stock could climb 21.7% from here.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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