The Finnish network equipment maker is in the midst of a dramatic transformation. After years of being overshadowed by Ericsson and Huawei in the hardware-heavy telecom gear market, Nokia is betting its future on software and artificial intelligence — and the market is rewarding the shift handsomely. The stock has surged roughly 124 percent since the start of 2026, closing at €12.47 on Wednesday, just shy of its 52-week high of €12.60.
Two announcements this week underscore the speed of the pivot. On May 13, the company named Emma Falck as the new president of its Mobile Infrastructure division, effective September. The Siemens veteran and PhD in physics takes over a unit that has been without a permanent chief for six months after Tommi Uitto departed over strategic differences. CEO Justin Hotard made clear that Falck’s mandate is to accelerate the software-driven overhaul of the mobile networks business, which saw zero revenue growth in the first quarter.
The very next day, Nokia unveiled a new autonomous AI system for fixed broadband networks. Dubbed “Agentic AI,” the platform can detect and fix network faults without human intervention, reserving engineer dispatches only for emergencies. Nokia claims the software will halve the number of on-site visits required and push first-contact resolution rates above 50 percent. The announcement sent the stock up 12 percent in a single session.
The timing is no coincidence. Mobile operators are holding back on new investment after the costly 5G rollout, creating pressure on Nokia’s traditional revenue streams. But the company is positioning itself as a beneficiary of a much bigger wave: the infrastructure buildout for artificial intelligence. Cisco’s recent report of a 152 percent jump in AI-related orders has been taken by analysts as confirmation of a broader super-cycle that feeds directly into Nokia’s optical and IP networking segments.
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That narrative has triggered a flurry of target-price revisions. JPMorgan more than doubled its objective from €6.90 to €12.00, upgrading Nokia from a low-margin telecom equipment maker to an AI growth stock. Argus initiated coverage with a Buy rating and a $15 target, while Jefferies outlined a bull-case scenario of €14.20. The bullishness rests partly on first-quarter results showing over €1 billion in AI-linked orders and a 49 percent year-over-year jump in the AI and cloud segment, which now accounts for 8 percent of total revenue.
Valuation remains a polarising topic. On a trailing basis, the stock trades at a price-to-earnings multiple of roughly 91 — a level that leaves no room for disappointment. Forward multiples, however, are more moderate at 30 to 37, reflecting expectations of sharply higher earnings. Nokia’s direct peer in the AI infrastructure space, Arista Networks, commands multiples above 45, suggesting there may still be room to run if the company can execute.
The balance sheet provides a solid foundation for the push. Net cash stood at €3.8 billion at the end of the first quarter, offering ample headroom for integrating recent acquisitions like Infinera and maintaining the annual dividend of €0.14. Management has already raised the growth forecast for the Network Infrastructure segment to 12–14 percent, and now sees the addressable market for AI and cloud services expanding at a compound annual rate of 27 percent through 2028 — a sharp upgrade from the earlier estimate of 16 percent.
Emma Falck’s task will be to convert the AI euphoria into tangible revenue gains in mobile infrastructure, the company’s most challenging division. With a clear strategic direction, a strong cash position, and a stock that has already repriced dramatically, Nokia’s next chapter hinges on whether it can deliver the software-led transformation investors are now betting on.
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