Key Highlights
- NOK shares surged approximately 6% Friday, building on a 113% year-to-date rally
- First-quarter revenue increased 4% year-over-year, while AI and cloud client revenue soared 49%
- Arete Research elevated NOK to buy from neutral; Morgan Stanley maintains overweight stance
- Company finalized deal to transfer Fixed Wireless Access operations to Inseego while maintaining equity position
- CNBC’s Jim Cramer endorsed Nokia as “a winner,” praising its technological resurgence
Nokia (NOK) shares jumped nearly 6% during Friday’s session, reaching approximately $13.65, propelled by impressive first-quarter performance, favorable analyst revisions, and surging artificial intelligence demand.
The advance continues an exceptional performance streak. Shares have skyrocketed more than 113% since the beginning of 2025 and climbed over 155% during the trailing twelve months.
Trading activity remained robust. Approximately 68.96 million shares traded hands Friday, surpassing the three-month average daily volume of roughly 65.97 million.
Nokia’s first-quarter earnings provided significant catalysts for investors. Top-line revenue expanded 4% compared to the prior-year period, with the Optical Networks division posting a particularly strong 20% gain.
The headline figure was a remarkable 49% surge in revenue generated from artificial intelligence and cloud computing clients. Company leadership attributed this growth to accelerating capital deployment from hyperscale operators and expanding enterprise AI workloads.
The Finnish telecom equipment manufacturer has disclosed approximately €1 billion in AI-related order bookings, which has strengthened the bullish thesis among Wall Street analysts tracking the company.
Wall Street Upgrades Propel Momentum
Arete Research elevated Nokia from neutral to buy Thursday, triggering a 3.6% gain that pushed shares to an intraday peak of $12.92. Trading volume spiked 122% above typical levels following the ratings upgrade.
Morgan Stanley reaffirmed its overweight recommendation earlier this week. Nordea Equity Research similarly upgraded the stock to buy on April 24th.
Currently, 12 Wall Street analysts assign buy ratings to Nokia, while four recommend holding and two suggest selling. The consensus rating stands at Moderate Buy, although the average analyst price target of $9.71 trails significantly behind the current trading price.
Citigroup stands as the primary skeptic, maintaining its sell rating originally issued in January.
Strategic Positioning in AI and the Inseego Transaction
Nokia finalized an agreement to divest its Fixed Wireless Access CPE operations to Inseego. Under the transaction terms, Nokia will acquire an ownership stake in Inseego while both organizations collaborate on next-generation initiatives spanning 6G technology, wireless edge computing, and AI-powered connectivity solutions.
Inseego conducted an investor conference call this week outlining the acquisition details, providing stakeholders with enhanced clarity regarding the partnership framework and strategic roadmap.
The transaction enables Nokia to exit a lower-margin hardware category while preserving market exposure through its Inseego equity position.
Jim Cramer offered his endorsement Friday, labeling Nokia “a winner” during his broadcast. He commented, “I gotta hand it to those guys for sticking around because, wow, I think it’s got a lot of good technology.”
Nokia also increased its quarterly dividend payment to $0.0468 from $0.04, translating to an annualized yield near 1.5%. Shareholders of record as of April 28th will receive the distribution on May 12th.
One potential concern: the trailing price-to-earnings multiple hovers around 80, creating vulnerability should the company underdeliver on operational metrics or earnings forecasts. Wall Street analysts project full-year earnings per share of $0.41.
Nokia’s market capitalization currently stands at approximately $74 billion. The 50-day moving average rests at $8.83 while the 200-day average sits at $7.32—both substantially beneath the current share price.
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