Nokia’s Top Brass Step In With Share Purchases as AI Pivot Reshapes the Telecom Giant

Nokia executives purchase shares at €12.09 as the telecom giant pivots to AI-ready networks, with AI cloud revenue surging 49% and defense segment expanding.

The top management at Nokia has put its own money behind the company’s dramatic transformation. Four senior executives bought shares on the Helsinki exchange in mid-May at an average price of €12.09, with Raghav Sahgal leading the pack with just over 1,300 shares. The purchases came as the stock, which closed Monday at €11.78, took a breather after hitting a 52-week high and more than doubling since the start of the year – the year-to-date gain stands at 111.57%.

The insider buying sends a clear vote of confidence at a time when the Finnish telecom equipment maker is fundamentally reshaping its identity. Nokia is moving away from consumer-oriented hardware and repositioning itself as a supplier of AI-ready network infrastructure, a shift that has already powered a stunning re-rating.

AI and Cloud Become the Engine Room

The numbers behind the strategy are compelling. In the first quarter of 2026, Nokia reported net sales of €4.5 billion, up 4% on a comparable basis. The standout performer was the AI and cloud segment, where revenue surged 49% and now accounts for 8% of group sales. AI-related orders exceeded €1 billion in a single quarter, prompting management to raise its growth outlook for the division from 16% to an average annual rate of 27% through 2028.

Profitability is also improving. The comparable gross margin came in at 45.5% after the Infinera acquisition, and the company holds net liquidity of €3.8 billion. Analysts at Deutsche Bank reiterated their buy recommendation on May 15 but lifted their price target only modestly from €7.50 to €8.50 – a sign that the stock’s advance has left traditional valuation models lagging.

Defense, Fiber and a Slimmer Portfolio

Nokia is not relying solely on AI. This week it appeared on two major industry stages. At the International Telecoms Week in Maryland, the company’s CTO delivered a keynote titled “Connectivity 2030,” arguing that networks must be built from the ground up for AI data flows. Simultaneously, Nokia Federal showcased private mobile networks for defense and critical communications at the SOF Week event, targeting customers beyond traditional telecom operators.

The defense push includes a modular 5G solution developed jointly with Lockheed Martin for the U.S. military and its allies. On the product side, Nokia also introduced new AI capabilities for fixed-network products that automate complex network management tasks for telecom providers.

The portfolio is being streamlined too. At the end of April, Inseego agreed to acquire Nokia’s fixed-wireless-access CPE business, a deal expected to close in the fourth quarter of 2026. Upon completion, Nokia will initially receive roughly 7% of Inseego’s equity – shares and warrants valued at $20 million – with a further $10 million investment planned that would lift Nokia’s stake to about 11%. The two companies will also collaborate on next-generation mobile technology and wireless edge.

New Leadership and Legal Clarity

To steer the mobile infrastructure division through a period of stabilization, Nokia has appointed Emma Falck as its head effective September 1. She joins from Siemens and will take a seat on the group’s executive board, tasked with turning around a business that has been a drag on performance in recent years.

Legal uncertainty has also eased. A British appeals court recently paused certain proceedings in a patent dispute with Acer and Asus, providing clarity for Nokia’s European licensing strategy.

What the Market Is Watching

For the current fiscal year, Nokia’s board is targeting an operating profit between €2.0 billion and €2.5 billion, with the optical and IP networking division expected to grow by as much as 20%. A longer-term goal sees comparable operating profit reaching €2.7 billion to €3.2 billion by 2028, driven by improving margins in network infrastructure that should settle in a 13% to 17% range. Additional revenue from data-center switching could contribute €400 million, according to Deutsche Bank.

The next major test arrives on July 23, when Nokia reports second-quarter results. Investors will be watching order intake, margin trends and the AI revenue mix for confirmation that the company’s operational progress can catch up with a stock that now trades far above its average analyst price target. The relative strength index sits near 49 – neutral territory – suggesting the rally may have room to run if the numbers deliver.