Nokia Surges 157% on AI Infrastructure Pivot as Nvidia's $1 Billion Bet Gains 170%
Updated
Updated · 24/7 Wall St. · Jun 4
Nokia Surges 157% on AI Infrastructure Pivot as Nvidia's $1 Billion Bet Gains 170%
1 articles · Updated · 24/7 Wall St. · Jun 4
Summary
157% year to date, Nokia has reemerged as an AI infrastructure play, with Jim Cramer spotlighting its shift from failed handset icon to a key vendor in optical networking and AI-ready wireless networks.
A $2.3 billion Infinera acquisition expanded Nokia's data-center interconnect business, while its AI-RAN push aims to move inference to cell towers for lower-latency edge applications.
Nvidia reinforced that thesis in October 2025 by investing $1 billion in Nokia at $6.01 a share; with the stock near $16.85, that stake is up roughly 170% in about six months.
49% growth in AI and cloud net sales in Q1 2026 and about 1 billion euros in booked orders helped support the rerating, alongside 2026 comparable operating profit guidance of 2.0 billion to 2.5 billion euros.
Cramer still urged caution: Nokia trades at about 100 times earnings, analyst targets trail the market price, carrier spending remains uneven, and AI-RAN is not expected to scale commercially until late 2027.
With its stock at a 100x P/E ratio, is Nokia's AI surge a sustainable comeback or another tech bubble?
Beyond smart cities, what are the first real-world applications we'll see from Nokia's AI-powered 5G networks?
Nokia’s AI and Cloud Networking Pivot Delivers 49% Segment Growth and $1B in New Orders in 2026
Overview
In 2026, Nokia experienced a strong resurgence, highlighted by a 2.36% rise in its stock price and high trading volume, signaling renewed market interest. This positive momentum was driven by investor optimism, which grew as the market re-evaluated Nokia’s potential. The optimism was fueled by Nokia’s strategic pivot and its strong positioning in the fast-evolving 5G and AI-native network landscape. As a result, the market reacted positively, reflecting confidence in Nokia’s transformation and its ability to capitalize on new technology trends.