Nokia Stock Surges on Strong AI Infrastructure Growth and Earnings Beat

Strong Earnings Drive Stock Surge

Nokia’s stock reportedly jumped 10% in U.S. trading following the release of quarterly results that exceeded market expectations, according to financial reports. The Finnish company’s performance was reportedly driven by robust growth in optical networking and cloud infrastructure segments, with particular strength in artificial intelligence-focused datacenter sales.

Strategic Pivot to AI Infrastructure

Sources indicate that Nokia’s transformation under former CEO Pekka Lundmark is now demonstrating tangible results, with the company diversifying beyond its traditional telecom infrastructure business. Analysis suggests this strategic shift included the $2.3 billion acquisition of optical networking specialist Infinera, which was completed this year and has contributed to the company’s growth in AI infrastructure markets.

Quarterly Performance Highlights

According to the company’s earnings report, Nokia achieved 9% overall revenue growth, with network infrastructure sales growing 11% to €1.95 billion. Cloud and Network Services reportedly surprised analysts with sales of €645 million, approximately 17% above estimates according to Raymond James analysis. The report states that artificial intelligence and cloud customers now account for 6% of group net sales and 14% of network infrastructure sales.

Leadership Transition and Market Positioning

Analysts suggest that Nokia’s leadership transition to American executive Justin Hotard, who brings extensive datacenter and enterprise experience from previous roles at Intel and Hewlett Packard Enterprise, positions the company well for continued growth in AI infrastructure. During the earnings conference call, Hotard reportedly noted improvements in communications service provider expectations and strong order intake in AI and cloud segments.

Expanding AI Customer Base

The report indicates that Nokia is gaining traction with major AI infrastructure customers, including recent IPO CoreWeave, while analysts suggest potential engagements with Meta and Google. According to Raymond James analysts, Nokia reportedly shares a new Meta optical scale-across project with Ciena, and the company has established footholds with Microsoft, Google, and CoreWeave, along with a new deal with Nscale.

Analyst Upgrades and Market Response

Following the earnings release, multiple Wall Street analysts reportedly raised their price targets for Nokia. Raymond James increased its target to $6.50 from $5, while Deutsche Bank adjusted its European exchange target. Analysis suggests that Nokia’s flexible, open-source SR Linux operating system has become a key differentiator, with customers citing its simplicity, reliability, and energy efficiency for large-scale AI networking infrastructure.

Future Outlook

According to company statements, Nokia now expects annual operating profit between 1.7 billion and 2.2 billion euros, representing a slight upgrade from previous guidance. The report states that the company’s backlog coverage entering the fourth quarter is stronger than in recent years, suggesting continued momentum in its AI infrastructure business segments.

References

• https://www.futuriom.com/articles/news/nokia-swaps-out-ceo/2025/02
• https://www.futuriom.com/…/09
• http://en.wikipedia.org/wiki/Telecommunications
• http://en.wikipedia.org/wiki/Optical_networking
• http://en.wikipedia.org/wiki/Data_center
• http://en.wikipedia.org/wiki/Cloud_computing
• http://en.wikipedia.org/wiki/Nokia

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