I started looking at Nokia again and I think people may be missing the new story.
This is not just the old phone company anymore.
Here is what caught my eye:
- €2.8B in AI and cloud orders in Q2
- AI/cloud sales up 105% year over year
- Optical Networks sales up 20%
- IP Networks sales up 16%
- NVIDIA invested $1B in Nokia
- Nokia and NVIDIA are testing AI-RAN with major telecom companies
- Nokia also announced a new AI deal with Microsoft
- Two analysts recently gave NOK a $15 price target
- Nokia just returned to the EURO STOXX 50
The bear case:
- Nokia is leaving most of mainland China (good, imo)
- The stock has already run a lot
- AI spending could slow down
- Nokia is still a huge, slow-moving company
The part I find interesting:
Nokia is selling the network gear that connects AI data centres.
AI needs GPUs.
GPUs need fast networks.
Nokia sells those networks.
The stock is around $11.
I’m watching to see if it can break above the recent highs and if the AI/cloud numbers stay strong next quarter.
Not saying this is going to $20 tomorrow.
But €2.8B in AI/cloud orders is big enough that I think NOK deserves another look.