Nokia’s 140% Rally: AI infrastructure powers a historic comeback

Nokia has emerged as one of the strongest-performing technology stocks of 2026, with its share price rising more than 140% year-to-date. The rally has surprised many investors because the company was long viewed as a mature telecom equipment maker struggling with slow industry growth. However, the market now sees Nokia as an important beneficiary of the global artificial intelligence infrastructure boom. (Sources: Yahoo Finance, Trefis, ECIKS, Moomoo)

Investor enthusiasm accelerated after NVIDIA invested nearly $1 billion in Nokia during late 2025. The partnership signalled that Nokia could play a major role in AI networking infrastructure and AI-powered wireless systems. The announcement dramatically changed market perception, helping investors view Nokia as a strategic technology infrastructure company rather than just a telecom vendor.

Nokia’s AI-related business momentum strengthened significantly during the first quarter of 2026. Sales linked to AI infrastructure and cloud networking demand reportedly rose close to 49% year-on-year. The company also secured nearly €1 billion worth of AI-related cloud orders, particularly for optical networking systems used inside hyperscale AI data centres.

The company is actively reshaping its long-term strategy around AI infrastructure, cloud networking, and advanced connectivity solutions. Management has outlined plans to simplify operations and separate AI-focused network infrastructure activities from its traditional telecom operations. This strategic shift reflects Nokia’s broader ambition to become a core technology supplier for the AI economy.

Technology companies around the world are investing heavily in AI infrastructure, including data centres, networking systems, and computing hardware. Nokia aims to capture a meaningful share of this spending through its optical transport products, cloud networking solutions, and AI-enabled wireless technologies. Investors increasingly believe the company could benefit from a multi-year AI investment cycle.

Nokia has strengthened its AI ecosystem through partnerships with major technology and telecom companies. The company recently launched an AI Networking Innovation Lab in California alongside partners such as AMD, Lenovo, and Supermicro. Nokia is also working with global telecom operators on AI-RAN technologies designed to combine wireless networks with AI computing capabilities.

The market is rapidly reassessing Nokia’s valuation as the company transitions towards AI infrastructure. Many investors believe traditional valuation models may not fully reflect the company’s future earnings potential because Nokia is still in the early stages of monetising AI-related opportunities. Growing optimism around AI infrastructure demand has therefore supported a major rerating in the stock.

Despite the strong rally, Nokia still faces several important risks. AI infrastructure spending could moderate if the pace of AI adoption slows globally. Telecom operators also remain cautious about the long-term economics of AI-RAN investments. In addition, after such a sharp rise in the stock price, investors may demand continued strong execution and sustained order growth from the company.

Nokia’s comeback story reflects how artificial intelligence is reshaping global technology markets and reviving companies previously considered mature or slow-growing. Strong AI infrastructure demand, major partnerships, and expanding optical networking opportunities have transformed investor perception of the company. The next few quarters will be critical in determining whether Nokia can sustain its momentum and establish itself as a long-term AI infrastructure leader.