"Kelleher's upgrade hinges on AI-related demand showing up in Nokia's order book. The company raised its 2026 revenue growth guidance for the Network Infrastructure business, the segment most directly tied to optical interconnect, IP routing, and data center switching where hyperscaler dollars flow fastest."
"Nokia carries a market cap near $62.3 billion, with trailing twelve-month revenue of roughly $20 billion across Network Infrastructure, Mobile Infrastructure, and Nokia Technologies. CEO Justin Hotard has reorganized the portfolio and absorbed Infinera to sharpen the optical story."
"AI data centers are reshaping networking economics, and east-west traffic between GPU clusters plays directly into Nokia's strengths against Cisco Systems and Arista Networks. Cisco's networking revenue grew 21% last quarter and Arista posted 29%."
Analysts at Argus upgraded Nokia's shares to Buy from Hold, setting a $15 price target based on strong AI-driven demand in the Network Infrastructure sector. The upgrade follows Nokia's Q1 report, indicating potential growth from optical and IP networking gear amid increasing data center traffic. The company raised its 2026 revenue growth guidance, suggesting a shift from a value trap to a growth story. Despite legacy challenges and competition, Nokia's stable Mobile Networks environment may also contribute to future growth.
Read at 24/7 Wall St.
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