Nokia Stock Surges 9.55% on AI Lab Launch and Analyst Price Target Hike in May 2026

ESPOO, Finland — Nokia Oyj shares rose 9.55% to 13.26 euros on the Helsinki Stock Exchange on May 22, 2026, as the company benefited from positive analyst actions and continued momentum in its artificial intelligence and optical networking business.

The Finnish telecommunications equipment maker closed the session with significant gains, aligning with strength in its U.S.-listed American Depositary Receipts, which climbed over 9% to around $15.47.

Morgan Stanley raised its price target on Nokia to 14 euros from 11 euros while maintaining a Buy rating, according to reports on May 22.

AI Networking Innovation Lab

Nokia launched its AI Networking Innovation Lab in California on May 21, 2026. The facility focuses on advancing AI-driven networking solutions for data centers and telecommunications operators.

The lab supports development of technologies that integrate artificial intelligence into network infrastructure, building on the company's recent growth in optical networks and AI-related orders.

Q1 2026 Financial Results

Nokia reported first-quarter 2026 net sales of 4.5 billion euros, up 2% reported and 4% on a constant currency and portfolio basis compared to the prior year.

Comparable gross margin expanded 320 basis points year-over-year to 45.5%. Comparable operating margin rose 200 basis points to 6.2%. The company posted comparable diluted earnings per share of 0.05 euros.

Free cash flow reached 0.6 billion euros in the quarter. Network Infrastructure net sales grew 6%, driven by a 20% increase in Optical Networks.

AI and cloud net sales grew 49% year-over-year, with the company securing around 1 billion euros in new AI-related orders during the period.

Nokia raised its full-year guidance for Network Infrastructure sales growth to 12-14% on a constant currency basis following the strong Optical Networks performance.

Analyst and Market Response

Multiple analysts adjusted targets upward in recent weeks. Deutsche Bank raised its price target to 8.50 euros from 7.50 euros in mid-May. Other firms including Argus Research have set higher targets around 15 dollars for the ADR.

Consensus ratings stood at Moderate Buy with an average 12-month price target near 9.71 dollars to 14.54 dollars across various analyst groups, though some forecasts reached as high as 17.43 dollars.

The stock has shown strong performance in 2026, reaching levels not seen in over 15 years amid AI infrastructure demand. Year-to-date gains exceeded 100% at points in May.

Strategic Developments

Nokia has pursued partnerships in AI and defense sectors. The company collaborated with Lockheed Martin on 5G solutions for military applications. It also announced new agentic AI capabilities for fixed networks in May.

The Infinera acquisition has contributed to synergy benefits in optical networking, supporting growth in data center connectivity for AI workloads.

Business Segments

Network Infrastructure remains the primary growth driver. Mobile Networks and other segments showed mixed results amid softer 5G deployment cycles in some markets. The company continues to focus on cost management and portfolio optimization.

Nokia maintains a solid balance sheet with net cash of 3.8 billion euros at the end of Q1 2026.

Industry Context

Demand for high-speed optical transport and AI-optimized networking equipment has accelerated as hyperscalers and telecom operators invest in data center expansion. Nokia competes in this space with firms addressing similar AI infrastructure needs.

The company has highlighted its position in providing end-to-end solutions from fixed and mobile networks to cloud and AI applications.

Outlook

Nokia has guided for continued growth in its key infrastructure segments for the remainder of 2026. Management cited strong order intake and margin expansion as supportive factors.

Upcoming quarterly results are scheduled for July 2026. Analysts will monitor execution on AI orders and margin trends.

Trading volume on May 22 was elevated as investors reacted to the analyst upgrade and lab announcement. The stock has exhibited volatility but maintained an upward trajectory through mid-2026.

Nokia operates globally with significant presence in Europe, North America and Asia. Its research and development efforts focus on 5G, 6G, AI and optical technologies.