"Shares jumped to a new all time high on October 28th on the news the Finnish telecom equipment maker secured a $1 billion equity investment from AI kingmaker Nvidia ( NASDAQ:NVDA). This news sparked discussions across r/stocks and r/options about Nokia's positioning in the AI led buildout of 6G communication technology. While shares have given back a lot of those gains, sentiment remains high at 83/100 today, among the highest with large cap tech stocks."
"The big watershed was the news that Nvidia will purchase over 166 million new Nokia shares while the companies collaborate on adapting Nokia's 5G and 6G software to run on Nvidia's chips. Reddit user u/Puginator captured the mood in r/stocks, noting "Nokia shares soared 20% higher following the news" and quickly captured 367 upvotes and active conversation. Retail traders see multiple reasons for optimism today:"
"One thing worth noting is Nokia's dividend yield stands out in the technology sector, where many growth stocks pay nothing. The company maintains its dividend distribution program. On r/options, traders are eyeing long-dated call options, with u/Molive81 noting "their Leaps for Jan 2027 and 2028 look relatively cheaper" compared to revenue-light tech names. Social sentiment remains deep in positive territory, and the Nvidia deal provides a tangible catalyst for the 6G thesis that could mean years of growth."
Nokia's stock gained about 50% over the last year and reached an all-time high after Nvidia agreed to buy $1 billion of new shares and collaborate on adapting Nokia's 5G and 6G software to run on Nvidia chips. Shares retraced some gains, but social sentiment stayed elevated at 83/100. Retail traders highlight the Nvidia partnership positioning Nokia in AI infrastructure networking, ongoing analyst buy ratings, and the company's dividend program. Options traders are targeting cheaper long-dated LEAPS. The Nvidia deal acts as a tangible catalyst for a multi-year 6G growth thesis alongside an above-market dividend yield.
Read at 24/7 Wall St.
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