Nokia’s Board Gets Paid in Shares as Stock Nears 52-Week High on AI and Military Deals

Nokia shares rally 150% in 12 months, fueled by military 5G deals, AI-driven optical network growth, and board compensation tied to stock performance.

Nokia’s remarkable twelve-month rally has delivered a 150% gain from the August 2025 low of €3.49 to last week’s €11.18, and the company’s board members are directly benefiting from the surge. The annual general meeting on April 9 approved a compensation structure that pays roughly 40% of board fees in Nokia shares, with allocations executed on May 4 — just one day before the stock touched its 52-week high of €11.51.

Board member Dannenfeldt received nearly 8,000 shares, Erenbjerg around 7,800, and other members several thousand each, all reported under EU market abuse regulations. While the timing is purely mechanical — the payout follows automatically from the AGM resolution — it underscores how closely the board’s interests are now aligned with the stock’s trajectory.

Military-Grade 5G Enters the Picture

The rally has been fueled by more than just boardroom mechanics. Nokia Federal Solutions and Lockheed Martin jointly unveiled a modular 5G system for the US Department of Defense, built on an open architecture that delivers secure communications for military vehicles in the field. The plug-and-play design allows commercial 5G technology to be integrated into existing military platforms without disrupting ongoing operations, building on a strategic cooperation agreement signed earlier this year.

The system is aligned with the C5ISR standard — the military framework for command, control, communications, cyber, and reconnaissance. Nokia is positioning itself as a supplier for security-critical infrastructure, a segment that typically offers long-term contract potential.

AI and Optical Networks Drive the Numbers

The share price acceleration has a concrete catalyst: Nokia’s Q1 2026 report, published on April 23. The company swung from a net loss of €59 million in the prior-year quarter to a net profit of €86 million. The Optical and IP Networks segment was the standout performer, with full-year growth guidance raised to 18-20%, driven by data center buildouts and AI infrastructure demand.

Nokia also lifted its growth forecast for the broader Network Infrastructure segment to 12-14%. The comparable operating result for the full year is pegged at €2.0-2.5 billion, with Q1 performance already landing slightly above the midpoint of that range. For the second quarter, management expects revenue to rise 5-9% sequentially.

Argus upgraded the stock to “Buy” on Wednesday, citing progress in optical networking, growing opportunities from AI-driven data center construction, and government security contracts. The timing is notable: the Helsinki-listed shares currently trade at €10.79, having nearly doubled since the start of the year when they were still below €6.

Profit-Taking and the Dividend Calendar

The stock hit an intraday high of €11.48 in early May but has since pulled back, with Thursday’s decline of nearly 4% suggesting profit-taking after a 47% monthly surge. The 200-day moving average is now far in the rearview mirror.

Today, Nokia pays the first tranche of its 2025 annual dividend: €0.04 per share. The AGM authorized a maximum total payout of €0.14 per share for the current year. For 2026, management targets a comparable operating result of €2.0-2.5 billion, underpinned by the core mobile and fiber infrastructure business — Nokia having already sold its fixed broadband division to Inseego.

Portfolio Reshaping Extends to Space

The Finnish telecom equipment maker is actively reshaping its portfolio. Subsidiary Modul8, which specializes in satellite communications, is being spun off via a reverse takeover with Celestial Acquisition Corp., targeting a listing in early summer 2026 pending regulatory approvals. Nokia will remain a major shareholder, viewing satellite connectivity as an integral component of future network architectures — including 6G.

Meanwhile, Nokia was selected by US steelmaker Hybar to equip a new sustainable steel plant in Arkansas with a private 5G network. The facility runs entirely on renewable energy, with Nokia providing connectivity for locomotives, trucks, and on-site operational technology.

The Q2 results, expected in July, will test whether the AI-driven demand translates into hard revenue numbers that justify the current valuation. With the stock trading just 3% below its 52-week high, the market is betting heavily on execution.