Nokia’s Optics and AI Push Drives JPMorgan to Lift Target 50% as Nvidia Backs 6G Effort
14.06.2026 - 13:05:11 | boerse-global.de
JPMorgan has handed Nokia its most bullish analyst call in years, raising the price target by a full 50% to €18 while keeping an “Overweight” rating. The move, announced Thursday, reflects a sharp upward revision to revenue estimates for 2026 through 2028, driven by what the bank sees as two powerful tailwinds: the boom in artificial-intelligence infrastructure and an unexpectedly robust optical-market recovery. The market responded in kind, pushing Nokia’s shares to €12.79 on Friday — a gain of more than 5% on the day.
The new target implies roughly 41% upside from Friday’s close, but JPMorgan’s conviction goes deeper than a single price estimate. The bank now forecasts 2028 EBIT that sits 58% above the midpoint of Nokia’s own November 2025 guidance, arguing that investors systematically underestimate how much AI data-centre buildout will drive demand for optical networks and IP-routing gear. That thesis aligns closely with what Nokia has been signaling to the market: the company is repositioning its entire portfolio around AI-native networking.
Nokia’s push into autonomous network operations gained concrete form on the product side this week. The company has integrated its so-called Agentic AI Framework into the Network Services Platform (NSP), a move that turns what was a R&D concept into a commercial offering. A key component is a AI-powered troubleshooting bot that analyses live network data and performs root-cause analysis without human intervention. Nokia Vice-President Saša Nijem?evi? described the release as a pragmatic step toward fully AI-native networks, with commercial availability expected by the end of 2026. Separately, Nokia unveiled Deepfield Genome Shield, an automated cybersecurity tool designed to defend against botnet attacks — further evidence of the company’s push to sell higher-value software alongside its hardware.
Should investors sell immediately? Or is it worth buying Nokia?
Perhaps the highest-profile endorsement of Nokia’s strategy came from Nvidia. The chip giant has taken a strategic investment in Nokia, specifically to accelerate development of optical interconnects — a technology that is rapidly becoming a bottleneck in GPU clusters. The partnership extends to early work on 6G networks, with both companies betting that future mobile generations will be defined by AI capabilities rather than spectrum or modulation schemes. That long-term bet has already started to show in Nokia’s order book: the company reported that hyperscaler demand for optical and IP equipment is climbing, echoing recent comments from Cisco, which flagged multi-billion-dollar AI-infrastructure orders from the same customer base.
Nokia’s first-quarter numbers offered a mixed but generally supportive picture. Earnings per share beat analyst expectations, while like-for-like revenue rose 4% — slightly below consensus but still positive after several quarters of declines. The stock has surged roughly 130% year-to-date and almost 179% over the past twelve months, yet it remains below its 52-week high of €14.97, suggesting some room for further re-rating.
Not everyone is convinced the rally is justified. A handful of analysts still peg a fair value closer to €6.21, a level that would imply the stock has dramatically overshot its fundamentals. Risks cited include currency headwinds and intensifying competition in the open RAN segment. The relative strength index currently sits at 53.9, pointing to neutral momentum rather than froth. The coming quarters will be the true test: Nokia’s optical business must deliver on the growth narrative, and JPMorgan’s 58% earnings gap versus its own guidance will need to be closed by hard financial results. If the AI-infrastructure story holds, the €18 target may prove conservative. If it stumbles, the long shadow of a €6.21 fair-value estimate will loom large.
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Nokia Stock: New Analysis - 14 June
Fresh Nokia information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
