Nokia Shares Soar 1.90% on AI Infrastructure Push 5G Expansion and Key Partnerships

Nokia’s share price reached its highest level since September 2025, surging 1.90% intraday, driven by a strategic pivot toward AI infrastructure and 5G expansion. The stock’s momentum reflects growing investor confidence in the company’s market positioning as it secures key partnerships and advances its technological roadmap.

Recent developments highlight Nokia’s strategic focus on high-growth sectors. A multi-year 5G automation agreement with AT&T strengthens its U.S. presence, a critical hub for AI infrastructure. Additionally, the European Union’s approval of its $2.3 billion Infinera acquisition is expected to enhance high-speed data transmission capabilities, aligning with AI-ready infrastructure demands. Partnerships in India and Malaysia further underscore its expansion into digitizing markets, targeting broadband upgrades and AI data center modernization.

Financial performance in Q2 2025 showed modest revenue growth to €4.93 billion, with a net profit of €96 million, reversing a prior-year loss. However, margin pressures persist due to cost overruns and slow 5G deployment, prompting a revised operating profit guidance to €1.6B–€2.1B. Currency fluctuations and tariff-related expenses remain near-term challenges, complicating profitability in the Mobile Networks segment.

Leadership changes also shape investor sentiment. Justin Hotard, former Intel executive, assumes CEO, bringing expertise in AI and high-performance computing. While his appointment signals a strategic shift toward data center solutions, execution risks linger. Analysts remain cautiously optimistic: BNP Paribas upgraded Nokia to “Outperform,” citing undervalued fundamentals, while a “Moderate Buy” consensus reflects confidence in its AI-focused roadmap.

Long-term prospects hinge on Nokia’s ability to capitalize on AI-driven infrastructure demand. Its forward P/E ratio of 15× exceeds Ericsson’s 13×, indicating a premium valuation. Innovations like quantum-safe cryptography trials and autonomous network solutions position it to address cutting-edge market needs. However, delays in 5G adoption and capital allocation concerns, such as repurposing office spaces, highlight operational risks. Investors must balance these factors against the company’s strategic momentum in a rapidly evolving sector.