After years of redefining itself as a telecom equipment provider, Nokia may finally be ready for a share price breakout.
In today’s technical world Nokia (ENOUGH +4.15%) attracts relatively little attention. After the debut of Apple‘s iPhone and subsequent transition to smartphones destroyed its mobile phone business, the company redefined itself as a telecom hardware company. Therefore, it is much less on the minds of consumers – and investors – than it was when phones were ubiquitous.
However, a new collaboration with Nvidia has reignited Wall Street’s interest in the stock. It’s a deal that could underpin Nokia’s move into artificial intelligence (AI), fuel a long-awaited recovery and make the stock a long-term winner.
Image source: Getty Images.
Nokia as an AI company
Nokia’s focus on telecom equipment made it a crucial player in the communications industry, but recently the company has made another move into AI. It has built partnerships with Verizon And Lockheed Martinand in early 2025 it bought Infinera, an optical networking company, for $2.3 billion.
Nevertheless, it is the company’s new partnership with Nvidia, which it announced in October, that has contributed to renewed interest in the stock. Under the terms of the deal, Nokia will develop Nvidia-powered AI-RAN (radio access network) technologies, expanding its line of mobile network infrastructure products. This will help optimize existing 5G networks and drive the innovations that will support the transition to the next iteration of telecom technology, 6G. As Nvidia wrote in the press release announcing the deal, “The partnership marks the beginning of the AI-native wireless era and provides the foundation for supporting AI-powered consumer experiences and enterprise services at the edge.”
Financial consequences
As part of the partnership, Nvidia also made a $1 billion investment in Nokia at a price of $6.01 per share. The fact that the stock is currently trading at higher levels bodes well for both companies.
Moreover, analyst firm Omdia predicts that the RAN market will grow to $200 billion by 2030. Over the past four quarters, Nokia had net sales of 19.7 billion euros, so there’s a good chance that revenue growth will accelerate from here.
Nokia may have already started seeing faster revenue growth. In the third quarter of 2025, sales increased 12% year-on-year to 6.0 billion euros ($7.0 billion). By comparison, sales growth over the first nine months of the year was only 4%.
In the wake of news of the partnership and the company’s third-quarter results, the stock — which has been trading fairly flat — rose. It is now up more than 45% over the past year.
Today’s change
(4.15%)$0.27
Current price
$6.77
Key data points
Market capitalization
$38 billion
Day range
$6.64 -$6.82
Range of 52 weeks
$4:00 am -$8.19
Volume
33M
Avg. full
41M
Gross margin
42.70%
Dividend yield
2.32%
Additionally, Nokia’s P/E ratio of 38 may make it look expensive, but its forward P/E ratio of 18 seems more reasonable and seems to indicate an improving earnings picture.
Nokia is a long-term winner
Thanks to Nokia’s AI deals and partnership with Nvidia, the stock may finally be primed for long-term growth. While recent gains have been impressive, given the forecast earnings growth, Nokia may have only just begun its career as an AI winner.
