Nokia's Dual Catalyst Day: Rosenblatt's Bullish Debut Meets a Microsoft Data Alliance

Nokia stock closed at EUR 9.35 after Rosenblatt initiated coverage with a Buy rating, as eight carriers advanced AI-RAN trials and Microsoft ties deepened.

A single trading session can sometimes crystallize a story that has been building for months. For Nokia, Wednesday delivered exactly that kind of moment, as a fresh analyst endorsement and a pair of strategic announcements converged to push the Finnish vendor's shares up roughly 5%. The stock finished the day at EUR 9.35, capping a session that gave investors plenty to digest.

The most immediate spark came from Rosenblatt Securities, which initiated coverage of Nokia on Tuesday with a Buy rating and a $15 price target. The US research house framed the company as an "optical AI powerhouse," arguing that the market continues to undervalue its exposure to AI data centers and optical infrastructure relative to pure-play telecom peers. That call landed just as the stock was recovering from a sector-wide pullback in infrastructure names.

Rosenblatt's valuation model now splits Nokia's worth into two distinct halves: one-third tied to AI infrastructure, and the remaining two-thirds to its traditional telecommunications business. From that division, the analysts project a meaningful margin expansion, forecasting an operating margin above 15% by 2028, up from an estimated 11.5% in 2026.

AI-RAN Trials Move From Evaluation to the Field

Underpinning the bullish case is tangible progress on the technology front. Eight international carriers have now moved Nokia's AI-RAN technology beyond initial evaluation and into active laboratory and field testing, according to media reports. The news had already lent support to the shares in pre-market trading.

The roster of participants spans established European operators as well as providers from Asia and overseas. Specifically, A1 Group, Chunghwa Telecom, du, e&, Mobily, stc, TPG Telecom and Zain Saudi are taking part in the trials, which are being conducted across North America, Europe, the Asia-Pacific region and the Middle East. The test series marks a significant step toward broad adoption of artificial intelligence in radio access networks. In live trials, the platform has already achieved a spectral efficiency improvement of more than 20%.

Optical transmission is advancing in parallel. On Tuesday, Nokia and Telxius announced the deployment of pluggable 800G optical modules across terrestrial networks in Europe, the United States and Latin America.

Microsoft Tie-Up Targets Autonomous Network Operations

A day later, Nokia unveiled a deepened collaboration with Microsoft. By connecting the Nokia Data Suite with Microsoft Fabric, the two companies aim to create a unified data foundation for network analytics. The software-based functions under development cover autonomous quality assurance for 5G voice services, targeted optimization of radio networks and predictive maintenance of network elements.

The integration is designed to automate operational workflows in modern telecom networks, addressing the challenge carriers face in managing growing data volumes while minimizing outage risks early. Beyond the technical merits, such software and platform agreements secure recurring revenue and lift Nokia into a different valuation bracket than the hardware-heavy equipment business of decades past.

Defense and Index Tailwinds Add to the Momentum

Security-critical networks are emerging as another growth vector. A letter of intent signed with C3IA targets the digital transformation of the UK Ministry of Defence, with joint development planned across tactical communications, private 4G and 5G networks, situational awareness, edge computing and autonomous systems.

Institutional positioning is shifting as well. Roughly two weeks ago, STOXX confirmed Nokia's return to the Euro STOXX 50 as part of its annual review, with the change slated for September 21, 2026. After a year's absence, Nokia will displace automaker Volkswagen in the blue-chip index. For index funds rebalancing their portfolios, the re-entry arrives at a company whose foundation has visibly tilted toward future-facing technology.

Taken together, the developments paint a picture of a legacy telecom supplier repositioning itself as an indispensable layer of global AI infrastructure. Whether that reinvention holds will depend on execution, but investors appear increasingly willing to answer the question in the affirmative. Since the start of the year, the stock has climbed 67%.