Nokia's AI-Fueled Rally Lifts Employee Equity as Optical Network Orders Surge

Nokia's shares double in a year as AI data-center demand drives optical networking revenue up 49%, with Q2 results due July 23.

Nokia’s stock has more than doubled in the past year, surging 147% on a twelve-month view, as the telecom equipment maker pivots aggressively into artificial-intelligence infrastructure. Shares currently trade at €11.66, roughly 7% below the 52-week high of €12.55 reached in mid-May, and have added about 110% since the start of 2026 alone. The rally comes as the company executes a routine employee share transfer that underscores how far the stock has come.

On May 20, Nokia transferred nearly 975,000 of its own shares to employees as part of an equity compensation program approved by the board in October 2025. The shares were delivered at no cost to program participants, a standard move to align staff incentives with shareholder returns. After the transfer, Nokia still holds around 132.4 million treasury shares. The dilution effect on free float is negligible given the company’s size, but the timing has proven fortunate for recipients: the stock now sits near multi-year highs.

The broader story driving Nokia’s value is the boom in data-center buildouts for artificial intelligence. JPMorgan reiterated its buy rating with a €12 price target, and analyst Sandeep Deshpande highlighted CEO Justin Hotard’s recent investor conference presentation where optical networking and rising cloud demand were central themes. The integration of Infinera, which Nokia acquired to strengthen its optical portfolio, is already showing results. First-quarter revenue from AI and cloud customers jumped 49% year over year, while the optical networks division grew 20%.

Management remains confident in its full-year targets. Operating profit is expected to land between €2.0 billion and €2.5 billion, with capital expenditure rising to as much as €1 billion to expand production capacity — especially in optical networks. Key milestones lie ahead: new optical networking solutions will enter customer sampling by mid-2027, with mass production slated for the second half of that year. Meanwhile, Nokia is ramping up a critical factory in San Jose, California, which is set to increase output by the end of 2026.

The next major check on the company’s momentum comes on July 23, when Nokia reports second-quarter results. The market will be watching closely to see whether the strong demand for AI infrastructure continues to support the balance sheet and whether the operational ramp in optical networks stays on schedule. For now, the employee stock transfer serves as a quiet reminder of how far Nokia’s equity has traveled — and how much the narrative has shifted from telecom stalwart to AI infrastructure play.