Nokia Secures Investment-Grade Rating and Jefferies Backing as AI Infrastructure Bet Pays Off

Nokia's credit profile just got a little sturdier. Moody's Ratings lifted the Finnish telecom equipment maker's long-term issuer rating and its rating on senior unsecured obligations from Ba1 to Baa3, according to media reports, with the outlook left at positive. The agency pointed to demand for cloud and AI infrastructure and Nokia's expanding network infrastructure business as the rationale — a vote of confidence that lands alongside a fresh buy signal from the equity side of the market.

Jefferies reaffirmed its buy recommendation on Nokia on 30 October and kept its price target at 13.80 euros, media reports said. The call came during a stretch in which Nokia is posting growth in its AI and cloud infrastructure operations. Shares closed Friday at 7.00 euros, up 3.5% on the session.

Quarterly Numbers Show Where the Growth Is

The scale of that AI and cloud momentum was laid out in Nokia's quarterly report roughly two weeks ago. Revenue in the AI and cloud segment jumped 123% year over year in the third quarter of 2026. Group sales for the same period reached 5.154 billion euros, while comparable operating profit came in at 605 million euros. Management left its full-year 2026 guidance unchanged, still projecting comparable operating profit of between 2.1 and 2.6 billion euros.

Should investors sell immediately? Or is it worth buying Nokia?

Hotwire Taps Nokia for AI-Ready Network

On the order front, Nokia disclosed this week that Hotwire Communications selected it to build a next-generation network in North Carolina. The infrastructure is designed to be ready for AI network architectures and will use Nokia's 7750 Service Router line, with commissioning expected in early 2027. The contract has not been confirmed as the trigger behind the recent share price move.

Media reports have floated optimism around AI telecom solutions and rising data traffic as a possible backdrop for Friday's gain, though no specific new catalyst has been verified.

A Long-Range Bet on Data Deluge

Nokia also published a forecast this week projecting that AI will account for 44% of global network traffic by 2035. Total traffic is expected to approach 3,789 exabytes per month by then. The figures represent a long-term company projection rather than traffic volumes already achieved.

Separately, a regulatory disclosure showed FMR LLC and Abigail P. Johnson reporting economic ownership of 3.8% of Nokia shares as of 30 September, documenting the stake as of that date.

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