Nokia Wins Hotwire Backing for AI-Ready Network as Jefferies Keeps 13.80 Euro Target

Nokia's stock closed at 7.00 euros on Friday, up 3.5%, after the Finnish equipment maker disclosed that Hotwire Communications had picked it to build a next-generation network in North Carolina. The shares remain well below the 13.80-euro price target that Jefferies analyst Janardan Menon reiterated on November 2, when he restated his buy recommendation on the stock.

The Hotwire network, tailored for AI networking architectures, will lean on Nokia's 7750 Service Router and is scheduled to go live in early 2027. Nokia announced the selection on Wednesday.

Moody's Lifts Nokia Back Into Investment Grade

Credit quality has moved in Nokia's favor as well. Roughly a week before the analyst note, Moody's Ratings raised the company's long-term issuer rating to Baa3 from Ba1, applying the same one-notch upgrade to its senior unsecured obligations. The outlook was left at positive. Moody's pointed to demand for AI and cloud infrastructure as the rationale — a judgment on Nokia's creditworthiness that sits alongside, but separate from, Menon's view on the equity.

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

Ownership disclosures filed with the US Securities and Exchange Commission show FMR LLC and Abigail P. Johnson with an economically attributable 3.8% stake, as of September 30.

Traffic Forecast Points to an AI-Heavy Decade

Nokia's global network traffic report sketches a far more data-intensive future. The company projects that artificial intelligence will account for 44% of worldwide network traffic by 2035, with total monthly traffic approaching 3,789 exabytes by then. That figure is a long-range traffic expectation for global data flows, not a revenue forecast for Nokia itself.

Separately, AT&T and AST SpaceMobile reported on October 21 a successful handover between a terrestrial mobile network and a satellite network designed to connect devices directly. According to the two companies, it marked the industry's first successful transition of its kind. Nokia supplied the radio access technology and mobility software for AST SpaceMobile's network. That test concerned switching between the two network types, while the Hotwire build is not due to enter service until early 2027.

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Nokia Stock: New Analysis - 9 November

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