Nokia's AI-RAN Trials Deliver 20% Efficiency Gain as Inseego Handover Closes

Nokia closed Friday up 2.2% at EUR 9.47 as AI-RAN trials showed over 20% spectral efficiency gains; Q3 results are due October 22.

Nokia's push to reinvent its network business around software-defined, AI-driven telecom infrastructure is gathering pace, and investors have taken notice. Shares in the Finnish equipment maker finished Friday's session 2.2% higher at EUR 9.47, a move that market watchers say had no single company-specific trigger but reflected a steady drumbeat of strategic announcements over recent days.

AI-RAN field tests point to a 20% spectral uplift

Central to the transformation is the radio access network itself. Working alongside technology partners, Nokia is advancing so-called AI-RAN architectures, and trials and feasibility studies run on NVIDIA platforms have demonstrated a spectral efficiency improvement of more than 20%. Global carriers are taking part in those real-world tests, among them Chunghwa Telecom, the A1 Group, and Middle Eastern operators including stc and Zain Saudi.

The company is also widening its ties with Microsoft. The two firms are jointly building a unified, AI-based data foundation designed to let network operators run day-to-day operations faster and with fewer outages by deploying automated software agents. In a related deployment, Saudi provider Zain KSA has integrated Nokia's Deepfield Cloud Intelligence software platform into its network to monitor and steer data traffic across more than 100 cities in real time.

Portfolio pruning: FWA handover and a satellite alliance

Running parallel to the technology offensive is a sharpening of the core business. Nokia has completed the transfer of its Fixed Wireless Access unit to Inseego, which closed the acquisition on Thursday. As consideration, Nokia received roughly 1.9 million Inseego shares — about an 11% stake — plus warrants to acquire up to approximately 0.8 million additional shares. Nokia also invested USD 10 million and committed a further USD 10 million payment for development work due by October 15, 2026. The divestment trims the company's offering and concentrates resources on strategic priority areas.

Days earlier, on Thursday, Nokia unveiled a partnership with space technology firm ICEYE to develop secure satellite communications in low Earth orbit, aimed squarely at government agencies and defense-sector customers. The initiative highlights network vendors' growing appetite for military and state security solutions, though the technology is still some way from orbit: the first joint satellites are targeted for launch in 2028.

Analyst backing and the October earnings test

Analysts have lent support in the run-up to results. According to media reports, Jefferies reaffirmed its "Buy" rating on Nokia on September 24 and left its price target unchanged at EUR 13.80, implying substantial upside from current levels. The stock has already climbed 69% since the start of the year, yet it remains 37% below its 52-week high of EUR 14.97.

Whether the strategic partnerships are already feeding through to operating metrics will become clearer on October 22, when Nokia publishes third-quarter figures along with results for the first nine months of the 2026 financial year.