$NOK

Nokia’s financial and operational profile is undergoing a major transformation as the company gradually shifts away from its legacy telecom identity and repositions itself as a key infrastructure player within the rapidly expanding AI and hyperscale data centre ecosystem.
In Q1 2026, Nokia reported €4.5 billion in revenue, representing a 4% YoY increase on a constant currency basis, while AI and cloud-related revenue surged 49% YoY. Demand continues to be driven by the company’s 800-gig optical systems used in connecting hyperscale AI data centres, with Nokia securing roughly €1 billion in new AI/cloud orders during the quarter alone.
Profitability also improved materially, with gross margins expanding to 45.5% and operating profit rising 54% YoY to €281 million. More importantly, Nokia maintains a fortress-like balance sheet with a €3.8 billion net cash position and strong free cash flow generation, giving the company significant flexibility to scale its AI infrastructure ambitions.
From a technical standpoint, Nokia once traded at an ATH of $62.5/share back in 2000 and spent over two decades in a prolonged downtrend. However, the chart is finally beginning to show signs of structural recovery. The stock recently hit a 52-week high of $16.63/share before rejecting. A healthy pullback toward the $12.17–$12.91/share region would not be surprising.
At the current price of $15.63/share, NOK still appears relatively cheap considering the company is increasingly being repriced as an AI infrastructure and networking play rather than just a traditional telecom equipment company.
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