Nokia Shares Soar Past Analyst Price Targets as AI-Driven Orders and New Mobile Chief Take Center Stage

Nokia shares far exceed analyst targets, driven by 49% AI/cloud segment growth and upbeat management outlook. Deutsche Bank raises price target to €8.50 but stock trades at €11.96.

Nokia’s stock has left the most recent analyst fair-value estimates in the dust. Deutsche Bank kept its buy recommendation on Friday but raised its price target from €7.50 to €8.50 — a level the Finnish telecom equipment maker’s shares already exceeded by a wide margin. The stock closed the week at €11.96, having slipped 4.13% on the day, but the weekly gain still stood at a robust 10.08%.

The disconnect between where analysts see value and where the market is pricing Nokia underscores just how rapid the re-rating has been. Since the start of 2025, the shares have surged 114.80%, and over the past twelve months they are up 157.98%. Just a few days ago the stock hit a new annual high of €12.55. Profit-taking looks inevitable at these levels, but the underlying narrative remains overwhelmingly bullish.

AI and Cloud Drive a 49% Segment Surge

The engine behind the rally is Nokia’s deepening exposure to artificial intelligence and cloud infrastructure. In the first quarter of 2026, the AI and Cloud segment grew by 49% and now accounts for 8% of group revenue. That helped push overall sales to €4.5 billion, 4% higher on a comparable basis. The market for AI and cloud networking is expanding at a compound annual rate of 27% through 2028, according to industry forecasts, and Nokia is positioning its optical and IP network division to capture that demand.

Indeed, the company recently lifted its 2026 growth outlook for the Optical & IP unit to around 20% — double the previous forecast. Deutsche Bank further highlighted the potential for data-center switching to generate an additional €400 million in revenue. After the Infinera acquisition, profitability has also improved: the comparable gross margin stood at 45.5% and Nokia held net liquidity of €3.8 billion.

Management Outlook Points Higher

Nokia’s management is guiding for an operating profit of up to €2.5 billion in the current fiscal year, and current trading is running slightly above the midpoint of that range. The half-year results, due on July 23, will provide the next hard data point. Longer term, the company aims for comparable operating profit of €2.7 billion to €3.2 billion by 2028, with Network Infrastructure margins of 13% to 17%. How well it executes on those margin targets will determine whether the elevated valuation can be sustained.

New Mobile Infrastructure Chief Takes Over in 2026

A significant personnel change was announced on May 13. Emma Falck will take over the Mobile Infrastructure division on September 1, 2026, and join the group executive board. Falck comes from Siemens, where she was executive vice president for smart infrastructure building products, and earlier worked at Boston Consulting Group and KONE. She holds a PhD in computational physics, a background that aligns with Nokia’s push toward software-driven, open radio access networks centered on 5G Advanced and 6G.

The move signals Nokia’s intent to strengthen its mobile network business through open interfaces, standards, and partnerships — all designed to handle the exploding data demand created by AI applications. The division has been a drag in recent years, but the new leadership and the broader shift toward AI-optimized networks could change that trajectory.

A Packed Week of Industry Events

Nokia enters a critical period of industry visibility. The International Telecoms Week runs from May 18 to 21 in National Harbor, Maryland, drawing more than 7,000 executives from telecom, submarine cable, and AI infrastructure companies. Nokia is a Gold Sponsor, and its chief technology officer will deliver a keynote titled “Connectivity 2030” on May 19. A panel on GPU financing — a topic intimately tied to the AI data center boom — will follow the same day.

Simultaneously, Nokia Federal is participating in SOF Week, where it is showcasing private mobile network solutions for defense and critical communications. That dual presence underscores Nokia’s strategy of diversifying beyond traditional carrier customers into enterprise, government, and defense verticals.

The Next Catalysts

With the stock already pricing in substantial optimism, the coming weeks will test whether Nokia can back up the narrative with orders, margin improvement, and clear management guidance. The ITW and SOF Week events begin May 18, and the half-year report follows on July 23. Until then, the market will scrutinize every piece of evidence that the AI and cloud story is translating into sustainable profit growth — and that the new mobile infrastructure chief can help extend the momentum into the next chapter of the company’s transformation.