Nokia Shares Surge 2.42% on EU Acquisition Approval, AI/5G Strategy Boost

Nokia’s share price surged 2.42% on Monday, extending its winning streak to seven consecutive trading days with a cumulative gain of 8.80%. The stock hit an intraday high of $4.60, its highest level since October 2025, driven by renewed investor confidence in its AI and 5G infrastructure strategy. This upward momentum follows a series of strategic moves positioning the company to capitalize on evolving telecommunications demand.

The European Union’s approval of Nokia’s $2.3 billion acquisition of Infinera has bolstered its optical networking capabilities, aligning with surging demand for high-speed data transmission. Simultaneously, a multi-year partnership with AT&T to deploy 5G automation solutions has solidified its foothold in the U.S. market, a key growth corridor. These developments underscore Nokia’s pivot toward AI-ready infrastructure, with contracts in Malaysia and India targeting AI data center upgrades and broadband expansion, respectively.

Technological advancements further reinforce the stock’s trajectory. Nokia’s launch of a 50G Passive Optical Network (PON) solution addresses future-proof connectivity needs, while its 5G radio for railway systems highlights its role in critical communications. Strategic collaborations with Hewlett Packard Enterprise and Colt Honeywell on AI automation and quantum-safe cryptography position the company to lead next-gen telecom innovations. These initiatives align with a broader industry shift toward edge computing and private wireless networks, areas where Nokia has demonstrated strong ROI for enterprise clients.

Analyst sentiment has turned bullish, with BNP Paribas upgrading Nokia to “Outperform” and a $5.00 price target. The firm cited “overdone pessimism” and improving fundamentals, while a “Moderate Buy” consensus from five brokerages reflects optimism about the company’s AI-driven growth potential. Under newly appointed CEO Justin Hotard, a former Intel executive with deep AI expertise, Nokia is refocusing on data center and infrastructure solutions to meet the surging demands of AI workloads.

Risks remain, however. Currency fluctuations and U.S. tariffs have pressured margins, while China’s restrictions on foreign telecom vendors could limit market access. Despite these challenges, Nokia’s forward-looking strategy—centered on AI infrastructure, 6G preparation, and emerging markets—positions it to navigate near-term headwinds. The stock’s premium valuation compared to peers like Ericsson reflects investor faith in its long-term trajectory, though operational efficiencies will be critical to sustaining growth.