Nokia's Twin Engine: Defense and AI Power a 98% Rally as Q2 Earnings Loom
Published on 07/06/2026 at 15:07 | Redaktion boerse-global.de
The Finnish telecom equipment maker is no longer content with a single narrative. Nokia is simultaneously pivoting into two fast-growing sectors — artificial intelligence infrastructure and defence — and the market is pricing in the transformation even as it waits for hard proof in the next earnings report.
A Billion?Dollar Endorsement from Nvidia
The most potent catalyst landed in late October 2025, when Nvidia poured $1 billion into Nokia. The chip titan’s investment is not passive: the pair are jointly developing next-generation radio networks purpose?built for the AI era. That partnership has already reshaped Nokia’s revenue mix. In the first quarter, sales from the AI and cloud unit surged 49%, and the company logged more than €1 billion in new orders from this segment alone. The optical networks division, buoyed by demand from hyperscale data centres, grew by a fifth over the same period.
Orange Belgium Deal Brings WaveSuite into Play
Hard on the heels of the Nvidia tie?up, Nokia landed an exclusive contract to modernise Orange Belgium’s entire network infrastructure. The project merges fixed?line and mobile operations onto a single optical transport backbone — a setup that handles huge data loads far more efficiently than traditional architectures. Crucially, it marks the first deployment of Nokia’s WaveSuite automation platform at an Orange subsidiary. The AI?driven control system aims to slash downtime and simplify day?to?day management, giving the operator a taste of what fully automated networks look like.
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A Quiet Pivot to Defence
Nokia is also quietly building a second pillar. The company was invited to a NATO defence forum at the weekend, and Ukrainian forces are currently testing Finnish 5G technology for secure battlefield communications and tamper?proof networks. The goal is to create a sovereign infrastructure business that insulates Nokia from the volatility of mainstream mobile?equipment sales. Analysts are watching for concrete procurement contracts, potentially at the next NATO summit.
Stock Cools After a Meteoric Run
The market has enthusiastically endorsed this twin?track strategy. Nokia shares have surged 98.28% since the start of 2025 and 151.37% over the past twelve months. On Monday, however, the stock slipped to €11.04, edging below its 50?day moving average of €12.05. The pullback reflects a natural cooldown after such a steep climb, with investors pausing to see whether the order pipeline translates into fatter margins.
The Q2 Verdict Approaches
All eyes are now on 23 July 2026, when Nokia reports second?quarter earnings. Management has set a full?year 2026 operating profit target of up to €2.5 billion. The Orange Belgium deal and the Nvidia?backed AI push will be scrutinised for their contribution to the bottom line. If the numbers confirm sustained momentum, the stock’s old highs will once again be within striking distance.
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