Nokia stock soars on $1B Nvidia stake and AI partnership; NOK holds gains after Q3 beat

Bassyonni

ago 3 hours

Nokia stock

Nokia stock is riding a powerful two-day surge after the company unveiled a $1 billion strategic investment from Nvidia alongside a partnership to build AI-powered telecom infrastructure and 6G-ready “AI-RAN” platforms. The deal, which issues ~166 million new Nokia shares at $6.01 for a ~2.9% stake, pushed shares to their highest levels in nearly a decade. By midday Wednesday, NOK stock price remained elevated around the mid-$7s, consolidating Tuesday’s jump.

Why Nokia is rallying now

Two catalysts hit back-to-back:

Nvidia investment + alliance: The chipmaker’s cash infusion and technical tie-up center on integrating Nokia’s optical, IP, and data-center networking with Nvidia accelerated computing. For investors, a blue-chip AI partner validates Nokia’s pivot from a slow 5G cycle toward higher-growth AI data networks and future 6G architectures.
Q3 upside and outlook: One week earlier, Nokia reported a Q3 profit beat and double-digit sales growth, led by optical networks and cloud/data-center demand. Management nudged full-year operating profit guidance higher and highlighted orders tied to AI workloads.

Together, those developments reframe the story from “telco cyclical” to “AI infrastructure supplier,” a narrative that commands higher multiples if execution holds.

NOK stock price today: key levels to watch

Near-term support: Prior resistance around $6.50–$6.75—roughly the Nvidia subscription price plus a momentum buffer—now acts as a first line of support if profit-taking accelerates.
Resistance/overhang: The gap toward $7.80–$8.20 marks Tuesday’s spike highs; sustained closes above this zone would signal trend continuation rather than a one-off headline pop.
Volume tells the story: Turnover surged multiple times the 3-month average on the announcement, a hallmark of institutional repositioning. Elevated, but decelerating, volume on sideways days typically indicates healthy digestion.

What the Nvidia–Nokia tie-up actually means

Capital + roadmap: The equity purchase adds balance-sheet flexibility while locking both companies into a shared AI-RAN and data-center roadmap.
Product focus: Expect Nokia to embed GPU-accelerated inference/training stacks into RAN, optical, and IP domains, pushing automation and energy efficiency.
Go-to-market: Large carriers and hyperscalers are the target customers. Early wins will likely appear in optical backbones and data-center interconnect, with AI-RAN field trials ramping through 2026.

Fundamentals snapshot (latest quarter)

Net sales: ~€4.8B, up about 12% year over year.
Comparable operating profit: ~€435M, above consensus.
Guidance: Operating profit range lifted; management flagged sustained demand in Optical and improving trends in IP Networks as AI workloads scale.
Headwinds: Earlier hits from a slower 5G rollout, currency swings, and a lost U.S. contract remain part of the backdrop, but mix shift toward AI networking is cushioning the impact.

What could move Nokia next

Integration milestones: Concrete AI-RAN pilots, design wins in optical DCI, and carrier commitments will be the next proof points.
Margin trajectory: Investors will watch whether higher-mix AI gear expands gross margin or if pricing competition in carrier markets caps the benefit.
Macro & rates: Easing global rates support capex-heavy network upgrades; renewed tariff shocks or capex pauses would do the opposite.

For investors eyeing NOK

Bull case: The company leverages Nvidia’s platform to win high-margin optical/IP deals, converts AI-RAN pilots into deployments, and compounds free cash flow as 6G prep spends begin.

Bear case: AI-RAN adoption lags, carriers delay budgets, or competition compresses margins; the post-headline premium fades back toward pre-deal levels.

Positioning ideas (not financial advice):

Momentum traders watch the $7.80–$8.20 zone for breakouts with volume.
Long-term holders may prefer staged entries on pullbacks toward $6.70–$7.10, aligning with the subscription price and gap support.
Options traders could look at debit call spreads two to three months out to express upside while capping premium.

The Nvidia partnership and equity stake have reset the Nokia narrative: from a challenged 5G cycle to a contender in AI-driven networking and 6G platforms. After a sharp re-rating, the stock’s next leg hinges on execution—turning headline momentum into booked orders and margin expansion. For now, NOK has the rare combo of fresh catalysts, stronger fundamentals, and a strategic backer that could keep buyers engaged beyond a single news cycle.