TLDR
- Nokia (NOK) rose 3.7% to $9.465 on Tuesday, with over 65.5 million units traded.
- Q2 earnings beat expectations: EPS of $0.08 vs. $0.07 consensus; revenue up 8.4% year-over-year to $5.50 billion.
- AI and Cloud revenue doubled, rising 103% to represent 9.3% of total sales.
- CEO Justin Hotard outlined plans to secure long-term supply deals to address memory shortages expected through 2027.
- 18 analysts give NOK a “Moderate Buy” consensus with an average price target of $12.57.
Nokia (NOK) climbed 3.7% to $9.465 on Tuesday, touching an intraday high of $9.52. The move came as investors responded to strong Q2 results and growing confidence in Nokia’s position within AI infrastructure.
The stock had closed at $9.13 the session prior. Volume came in at around 65.5 million, roughly 20% below the average daily volume of 81.4 million.
Nokia reported Q2 EPS of $0.08, beating the $0.07 consensus by a penny. Net sales rose 8% year-over-year to 4.82 billion euros, or roughly $5.60 billion. That came in just short of the $5.57 billion analyst estimate on the revenue side.
Network Infrastructure was a bright spot, with revenue growing 12%. Optical Networks jumped 19% and IP Networks rose 15%.
AI Revenue Doubles
The headline number getting attention is AI and Cloud revenue, which doubled year-over-year, rising 103%. It now accounts for 9.3% of total sales. Nokia also booked 2.8 billion euros in new AI and cloud orders during the quarter.
CEO Justin Hotard pointed to sustained demand from AI data centers as a key driver. Investors are increasingly looking at Nokia less as a legacy telecom name and more as a network infrastructure play tied to AI buildout.
Hotard also addressed supply chain risks. With memory shortages expected to persist through 2027, the company plans to lock in long-term supply agreements, adjust product designs, and pass higher costs on to customers.
Nokia raised its full-year profit outlook following the results, which added further fuel to Tuesday’s move.
Analyst View
Of 18 analysts covering the stock, 13 have a Buy rating, three have a Hold, and two have a Sell. The consensus sits at “Moderate Buy” with an average price target of $12.57, well above Tuesday’s trading price.
Northland Securities has the highest target on the street at $20.00, set back in June. More recently, Danske upgraded NOK to Buy on July 1st.
On the institutional side, several funds added to positions in recent quarters. Fifth Third Bancorp increased its stake by 248.7% in Q4. Institutional investors collectively own 5.28% of the stock.
From a technical standpoint, Nokia is trading 2.9% below its 20-day moving average and 22.8% below its 50-day. It sits just 0.5% above the 200-day moving average, a level chart watchers often treat as a key line of defense.
Key resistance is seen at the $10 level. Support is around $8, near a prior buyer-defense zone.
Over the past 12 months, Nokia is up 128.41%, though the more recent trend has been choppy.
Analysts currently expect Nokia to post full-year EPS of $0.39.
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