Nokia is betting on two distinct artificial intelligence narratives simultaneously, and investors are buying into both. The Finnish telecom equipment maker saw its shares surge more than 5% on Friday to close at €12.79, lifted by a product announcement in AI-driven network automation and a deepening partnership with chip giant Nvidia. The twin catalysts have powered the stock to a roughly 130% gain since the start of the year, but the rally is fanning debate over whether the valuation has run ahead of reality.
The centerpiece of the first track is a so-called Agentic-AI framework for Nokia’s Network Services Platform, unveiled on June 11. The platform lets network operators deploy AI agents that act autonomously within defined security and policy boundaries, using a real-time network view. The initial use case is an AI-powered troubleshooting agent that speeds up root-cause analysis and cuts operational overhead. Nokia plans to make the framework commercially available by the end of 2026 — meaning revenue from the product will not materialize for at least another year.
On the second track, Nokia is collaborating with Nvidia on the foundations of future 6G networks. The chipmaker has taken a strategic stake in Nokia to accelerate development of optical interconnection technology, a critical bottleneck as data transfer between GPUs becomes the limiting factor in AI infrastructure. Nokia Vice President Sasa Nijemcevic described the troubleshooting bot as a pragmatic step toward AI-native networks, while the Nvidia alliance positions Nokia for the next generation of wireless standards.
The market’s enthusiasm has been hard to ignore. The stock has more than tripled from its 52-week low of €3.49 in August 2025, though it remains about 14% below the year’s high of €14.97 reached on June 3. Technical indicators show the uptrend intact: the relative strength index sits at 53.9, well short of overbought territory, and the share price trades comfortably above both its 50-day moving average of €10.95 and its 200-day moving average of €6.93. Yet the annualized 30-day volatility stands at 83.58%, a stark reminder that this rally has been anything but smooth.
Should investors sell immediately? Or is it worth buying Nokia?
Analysts warn that the valuation may already be pricing in too much optimism. One fair-value estimate of €6.21 implies the stock has nearly doubled beyond what fundamentals justify, with currency fluctuations and rising competition in the Open RAN segment cited as key risks. The macro environment adds another layer of uncertainty. The Federal Reserve meets on June 16–17 and will release fresh economic projections, while Eurostat is due to publish May inflation data for the eurozone. The flash estimate for May came in at 3.2%, up from 3.0% in April, a trend that could weigh on richly valued technology and infrastructure stocks.
Amid the AI frenzy, Nokia is also pushing ahead with conventional 5G infrastructure. The company recently struck a partnership with Indonesian operator Indosat Ooredoo Hutchison to modernise its network over three and a half years, covering low-band 5G across the entire footprint and mid-band 5G for roughly 80% of coverage. Field tests in Indonesia are slated for the second half of 2026.
Rival Cisco has reported strong demand for AI infrastructure from hyperscalers, with orders in the billions — a tailwind that supports the broader narrative Nokia is riding. But with the next quarterly report due on July 23 and a closed trading window set to start June 23, the immediate path for the stock depends on whether the automation story gains traction with early customers and whether the macro landscape remains cooperative after the Fed’s decision.
Ad
Nokia Stock: Buy or Sell?! New Nokia Analysis from June 14 delivers the answer:
The latest Nokia figures speak for themselves: Urgent action needed for Nokia investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from June 14.
Nokia: Buy or sell? Read more here...
