Nokia (NOK) Shares Climb 1.02% on AI, 5G Strategic Shift and Leadership Restructuring

Nokia (NOK) shares climbed 1.02% on Monday, marking six consecutive days of gains with a cumulative rise of 6.22% over the period. The stock reached its highest intraday level since October 2025, surging 2.86% during the session as investor sentiment shifted toward the company’s strategic repositioning in AI-driven infrastructure and 5G automation.

Recent business developments have bolstered confidence in Nokia’s long-term growth potential. A multi-year partnership with AT&T to deploy 5G automation solutions has strengthened its U.S. market footprint, aligning with rising demand for AI-ready networks. Simultaneously, the European Union’s approval of Nokia’s $2.3 billion acquisition of Infinera has expanded its optical networking capabilities, enhancing its capacity to meet surging demand for high-speed data transmission in AI applications. These moves underscore Nokia’s competitive positioning in the telecom sector, where rivals like Ericsson have also seen market optimism.

Leadership restructuring further signals a strategic pivot toward AI infrastructure. The appointment of Justin Hotard, a former Intel executive with deep AI and data center expertise, as CEO highlights Nokia’s commitment to integrating AI into its networking solutions. Complementing this shift, the company restructured its leadership into two new units—Technology and AI Organization and Corporate Development Organization—in October 2025. This reorganization aims to accelerate innovation in AI-powered network automation and 6G research, addressing evolving market demands.

Analyst upgrades and institutional investor activity have amplified positive momentum. BNP Paribas raised its rating for Nokia to “outperform” in late September, citing its AI focus and 5G momentum, while major institutional investors increased stakes in Q1 and Q2 2025. These developments reflect confidence in Nokia’s ability to capitalize on AI infrastructure growth, despite near-term challenges such as margin pressures from inflation and currency fluctuations. The stock currently trades at a 15× 2025 earnings multiple, a premium to peers like Ericsson, highlighting its perceived growth potential.

While strategic advancements and institutional backing fuel optimism, risks remain. Slower-than-expected 5G adoption in key markets and intensified competition from rivals like Huawei could temper near-term revenue growth. Additionally, ongoing cost inflation and revised operating profit guidance underscore the need for cautious optimism. However, Nokia’s proactive alignment with AI-driven networking trends and strategic partnerships, including collaborations to prepare for 6G, position it as a key player in the evolving telecom landscape.