Nokia’s AI Bet Pays Off as Court Victory and Surging Orders Fuel 115% Rally

Nokia wins British court case over Acer/Asus, reports €1B in AI orders, lifts guidance; stock surges 114% YTD to near 15-year high, with Deutsche Bank raising target to €13.50.

A courtroom defeat for Acer and Asus has removed a key overhang from Nokia’s patent licensing business, adding to the tailwinds from an accelerating pivot toward artificial intelligence infrastructure. The British Court of Appeal permanently halted lawsuits brought by the two PC makers, ruling that Nokia had offered fair licensing terms for its video-coding patents. The decision spares the Finnish group a trial scheduled for this summer and safeguards a high-margin revenue stream that has long underpinned its profitability.

The legal win comes at a time when Nokia’s operational transformation is delivering tangible results. The company booked more than €1 billion in orders from AI and cloud customers during the first quarter of 2026, pushing segment revenue up 49% year-on-year. Total group revenue reached €4.497 billion, a 2% increase, while net profit swung to €87 million from a loss of €60 million in the prior-year quarter. Comparable operating profit jumped 54% to €281 million, and diluted comparable earnings per share came in at €0.05.

Management responded by lifting its growth forecast for the network infrastructure division to 12–14% for the full year. Nokia also sees the addressable market for AI and cloud expanding at a compound annual rate of 27% through 2028. That outlook has drawn a fresh wave of analyst attention. Deutsche Bank issued two upgrades in quick succession: one on May 15 raising its target from €7.50 to €8.50, and a second, more recent move that pushed the target to €13.50. JPMorgan sits at €12.00, while Argus rates the US-listed ADRs a “Buy” with a $15.00 target. All cite the growing demand from hyperscale data centres and Nokia’s repositioning as a play on AI infrastructure rather than legacy telecom equipment.

The stock has responded in kind. After gaining roughly 10.5% midweek to touch €12.55 — its highest level since April 2010 — shares closed Friday at €11.96, down 4.13% in a session marked by profit-taking. On a weekly basis, however, the advance stands at 10.08%, and the year-to-date gain is a striking 114.80%. Over twelve months the return reaches 157.98%. The pullback was hardly surprising given the magnitude of the run, and the fundamental story remains intact.

To sustain the momentum, CEO Justin Hotard is reshaping his leadership team. In September, Emma Falck will leave Siemens to become head of the Mobile Infrastructure unit, with a mandate to align the division’s product roadmap with AI-driven technologies such as 5G Advanced and 6G. The appointment underscores Nokia’s determination to embed artificial intelligence into every layer of its network portfolio.

Nokia is also streamlining its hardware footprint. The group has agreed to sell its fixed-wireless-access business to Inseego, while retaining an 11% strategic stake. The move frees up capital and managerial attention for optical and IP networking, where AI workloads create the most immediate demand. With net liquidity of roughly €3.8 billion, the company has ample firepower to fund further investments.

The re-rating has turned Nokia into a stock that trades more like a data-center enabler than a conventional telecom supplier. Whether it can hold that status will depend on sustained orders from hyperscalers and margin expansion. For now, the combination of a cleared legal hurdle, accelerating AI revenue, and a fresh management team gives investors reason to stay engaged.