Nokia Scores Patent Victory as Cisco’s AI Orders and Lockheed Deal Fuel 115% Rally

Nokia gains from patent victory in UK, Cisco's AI infrastructure boom, and a new 5G defense partnership with Lockheed Martin, signaling a shift to AI and defense.

Nokia has packed an eventful week into a single stock move: a decisive legal win in London, a strong earnings report from key industry peer Cisco, and a new defense partnership with Lockheed Martin. The combination pushed shares 12 percent higher for the period, reinforcing the narrative that the Finnish network equipment maker is no longer just a telecom cyclical — it’s an AI infrastructure and defense play.

The Court of Appeal in Britain permanently halted patent lawsuits brought by Taiwanese manufacturers Acer and Asus, overturning a lower court ruling that would have forced Nokia to grant them an interim license for video-coding technology. The appeals court found that Nokia had already offered a license on fair and non-discriminatory terms and that the dispute should go to arbitration, not to London courts. A trial scheduled for June and July has been canceled. Hisense, another plaintiff, had already settled before the appeal hearing.

That legal breakthrough came alongside a powerful tailwind from Cisco. The U.S. networking giant reported a 12 percent revenue increase to $15.84 billion for the quarter ending in April, with its networking segment surging 25 percent. Cisco quantified its AI infrastructure orders at $5.3 billion for the current fiscal year and raised its full-year forecast to $9 billion — nearly double its previous outlook. “Investments from hyperscalers are trickling through the entire supply chain,” one market participant told Reuters, “proving the AI boom is far more than just a chip theme.”

Nokia’s own first-quarter results, covering the period through March 2026, support the bull case. Comparable operating profit jumped 54 percent to €281 million, topping consensus estimates of €250 million. Group net sales reached €4.5 billion, with comparable revenue up 4 percent. Revenue from AI and cloud customers grew 49 percent year-over-year. The comparable gross margin stood at 45.5 percent, and net cash came in at €3.8 billion.

Management raised its growth forecast for the addressable AI and cloud market to 27 percent annually through 2028, up from a previous 16 percent. For network infrastructure, Nokia now expects 12 to 14 percent growth in 2026, versus the earlier 6 to 8 percent range. A key driver is the company’s push into agentic AI — software that automates network operations, improves predictive maintenance, and reduces outages. Products such as Altiplano, Corteca, and Broadband Easy now incorporate these capabilities. Nokia estimates telecom operators alone will invest $6.2 billion in agentic AI by 2030.

Defense is the second growth vector. Nokia Federal Solutions and Lockheed Martin unveiled a modular 5G solution for U.S. and allied forces, using an open architecture that allows military vehicles and mobile platforms to integrate commercial 5G technology into standardized systems. For Nokia, the deal opens a market where reliability, security, and standardization are paramount — and where NATO countries are increasingly embedding 5G into mission-critical communication.

The stock closed the week at €11.96, after giving back 4.13 percent on Friday. Still, it has gained 114.8 percent since the start of the year, more than tripling from its 52-week low. The all-time high for the period was €12.55, reached on May 13. Shares now trade far above the 50-day moving average of €8.59 and nearly double the 200-day average of €6.01. The relative strength index has cooled to around 59.7, suggesting the rally is no longer overstretched after Friday’s pullback.

Investors now turn to the next major catalyst: the second-quarter earnings report, due on July 21, 2026. With so much already priced into the stock, Nokia will need to deliver continued growth in AI orders and show that the pipeline remains robust. The company has rewritten its narrative — execution will determine how long the market keeps buying the new story.