Key Takeaways
- Nokia shares gained approximately 6% Friday, building on a 113% year-to-date advance
- First-quarter net sales increased 4% year-over-year, while AI and cloud customer revenue climbed 49%
- Arete Research moved NOK from neutral to buy; Morgan Stanley maintains overweight stance
- The company reached an agreement to transfer its Fixed Wireless Access business to Inseego while maintaining an equity position
- Jim Cramer endorsed Nokia as “a winner” and praised its technological resurgence
Nokia (NOK) shares advanced nearly 6% during Friday’s session, reaching approximately $13.65, driven by robust first-quarter performance, favorable analyst revisions, and growing artificial intelligence momentum.
This rally continues an impressive trajectory. NOK has climbed more than 113% since the start of the year and surged over 155% during the trailing twelve months.
Trading activity reflected heightened investor interest. Approximately 68.96 million shares traded hands Friday, exceeding the three-month daily average of roughly 65.97 million.
Nokia’s first-quarter performance delivered several compelling data points for investors. Net sales expanded 4% compared to the prior-year period, with the Optical Networks segment posting a 20% gain.
The headline figure was a 49% surge in revenue generated from AI and cloud customers. Company leadership attributed this growth to increased capital deployment from hyperscalers and expanding enterprise AI infrastructure demands.
Nokia has accumulated approximately €1 billion in AI-related order commitments, a metric that has strengthened the bullish thesis among equity research analysts tracking the company.
Wall Street Upgrades Amplify Momentum
Arete Research elevated Nokia from neutral to buy Thursday, propelling shares up 3.6% that session to an intraday peak of $12.92. Trading volume spiked 122% above typical levels following the rating change.
Morgan Stanley confirmed its overweight position earlier during the week. Nordea Equity Research similarly upgraded the stock to buy on April 24th.
Currently, 12 analysts maintain buy recommendations on Nokia, alongside four hold ratings and two sell calls. The consensus rating stands at Moderate Buy, though the mean price target of $9.71 trails significantly behind current trading levels.
Citigroup represents the primary bearish voice, sustaining a sell rating established in January.
Strategic Positioning in AI and the Inseego Transaction
Nokia finalized an arrangement to transfer its Fixed Wireless Access CPE operations to Inseego. Under the terms, Nokia will receive an ownership stake in Inseego, and both entities will collaborate on 6G development, wireless edge computing capabilities, and AI-powered connectivity solutions.
Inseego conducted a conference call this week detailing the acquisition, offering investors additional clarity on the partnership framework and strategic roadmap.
This transaction enables Nokia to divest a lower-margin hardware division while preserving FWA market exposure via its Inseego equity position.
Jim Cramer offered his perspective Friday, labeling Nokia “a winner” during his broadcast. He remarked, “I gotta hand it to those guys for sticking around because, wow, I think it’s got a lot of good technology.”
Nokia increased its quarterly dividend to $0.0468 from $0.04, translating to an annualized yield near 1.5%. The payment will be distributed on May 12th to shareholders of record as of April 28th.
One consideration for investors: the trailing price-to-earnings multiple hovers around 80, creating vulnerability to shortfalls in operational performance or earnings delivery. Wall Street consensus projects full-year EPS of $0.41.
Nokia’s market capitalization currently approaches $74 billion. The 50-day moving average registers at $8.83 and the 200-day stands at $7.32, both substantially beneath the present trading price.
