Nokia has made a strong comeback in the global tech scene. The company’s stock reached its highest point since 2015 after Nvidia announced a $1 billion investment in the telecom equipment maker.
The news sent shares soaring, and the market is now looking at Nokia through a fresh lens not as a phone maker, but as a key player in AI-driven networking.
Key Takeaways On Nokia Stock
- Nokia stock jumped 22.84% in one day, closing at $7.77 its highest since 2015.
- Nvidia invested $1 billion, taking a 2.9% stake at $6.01 per share.
- The deal focuses on AI networking and data center connectivity.
- Nokia’s Q3 earnings showed 12% sales growth and stronger optical network revenue.
- October stock gain: 71%; Year-to-date gain: 116%.
What Triggered the Rally
Two major developments pushed Nokia into the spotlight:
1. Nvidia’s $1 Billion Deal
Nvidia acquired 166 million Nokia shares at $6.01 each. The funds will strengthen AI research and “trusted connectivity” across data centers. Nokia also plans to integrate Nvidia’s AI chips into its 5G and upcoming 6G network products. Following the announcement, shares surged nearly 23% intraday.
2. Strong Q3 Performance
In its October 23 report, Nokia posted 12% year-over-year growth, with optical network sales up 19%. Although total revenue fell slightly short, profits exceeded forecasts. Management raised 2025 profit guidance to €1.7–2.2 billion, and free cash flow turned positive a key confidence boost for investors.
October alone saw Nokia shares rise 71%. From a yearly low of $3.60, the stock is now approaching the $8 mark.
Quick Stock Snapshot (as of Oct 28 Close)
| Metric | Value | What It Means |
|---|---|---|
| Closing Price | $7.77 USD | Highest since 2015 |
| Pre-Market Dip | $7.41 USD | Normal pullback after rally |
| Market Cap | $41.8 billion | Stronger market position |
| P/E Ratio | 40.89 | Growth premium; forward ~12x |
| Dividend Yield | ~0.45% | Small but steady return |
| Volume | 364.8M shares | Extremely high activity |
Why Nvidia Is Betting on Nokia
Nokia has moved far beyond its old phone business. It’s becoming a core name in AI networking and infrastructure.
- AI-RAN Integration: Nvidia’s chips will combine with Nokia’s radio access software to build smarter, faster networks.
- 6G Development: Tests with T-Mobile will begin in 2026, supported by Dell servers, enabling real-time applications such as drones, AR, and automated vehicles.
- Data Center Growth: As AI expands, Nokia’s optical and routing products help link massive data centers. Nvidia sees this as a bridge between AI chips and global networks.
Nvidia CEO Jensen Huang described telecom as “the digital nervous system.” Nokia’s CEO Justin Hotard said the deal will help “bring AI data centers closer to every user.”
Market Sentiment On Nokia Stock
Social media reaction has been highly positive nearly 85% of posts around #Nokia and $NOK show bullish sentiment.
Positive Reactions:
- “Nvidia’s move marks a new AI chapter for Nokia.”
- “Optical sales up 19%, backlog rising real numbers behind the hype.”
Concerns:
Some traders noted a 1.5% margin drop and competition from Ericsson and Huawei, though the overall momentum remains strong.
Outlook: Bull vs. Bear
Why It Could Continue Rising
- Strong demand for AI data center connectivity, projected to grow 23% annually.
- Nokia trades at ~1x sales, below its peers.
- €3B cash reserves to support R&D or acquisitions.
- Analysts from Jefferies rate it a Buy, with price targets up to $11.36.
Risks
- High P/E valuation may lead to corrections.
- Currency or tariff risks.
- Slower AI spending could pressure profits.
Most analysts maintain a “Hold with a Buy Bias.” Deutsche Bank targets €4.75 based on Nokia’s 5G progress.
Final Thoughts On Nokia Stock
Nokia is emerging as a value-focused AI stock fueled by Nvidia’s confidence. The company’s shift from telecom to AI-driven connectivity gives it long-term potential. For traders, the support sits near $5.18 and resistance around $8.00 dips may offer opportunities in the ongoing rally.
Nvidia’s billion-dollar investment has done more than lift Nokia’s stock it has reshaped the company’s future in AI networking.
