NOK Stock Heads For Best Day In 2 Weeks After Solid Q2: Retail Chases ‘Biggest AI Play Right Now’
- Nokia’s Q2 revenue rose 8% year-on-year to €4.82 billion and earnings of €0.07 per share, matching analyst estimates.
- Network Infrastructure led growth, with sales up 12%, while AI and cloud customer sales more than doubled.
- CEO Justin Hotard said Nokia's new AI-RAN platform is designed to boost 5G network performance.
Nokia Oyj’s (NOK) stock jumped more than 6% overnight in New York trading after the telecom company posted strong fiscal second-quarter (Q2) results on Thursday, powered by artificial intelligence and cloud demand, signaling robust momentum in next-generation connectivity markets.
U.S.-listed shares of Finland-based Nokia are now headed for their best session since July 9 if gains hold throughout Thursday.
AI Demand Drives Growth For Nokia
Nokia’s Q2 sales increased 8% year-on-year, reaching €4.815 billion ($5.5 billion) with €0.07 earnings per share, both in line with the analysts’ consensus estimates, according to Fiscal AI data.
“Since we set out our plan late last year, Team Nokia has focused on maximizing our opportunity in the AI supercycle. I am encouraged by the execution and progress we have made in a short period of time,” said President and CEO, Justin Hotard.
The company’s Network Infrastructure unit delivered the strongest momentum, rising 12% year-on-year (YoY), helped by higher demand for optical and IP networking products. The company also saw AI and cloud-related order activity strengthen, recording €2.8 billion in new orders during the quarter. AI and cloud customer sales more than doubled year over year.
“We expect around half of these orders to convert to revenue over the next twelve months. Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders,” added Hotard.
Nokia’s comparable gross margin expanded to 46%, up 70 basis points YoY. Operating profit rose 18% to €434 million, lifting the operating margin to 9%. The company now expects 2026 operating profit between €2.1 billion and €2.6 billion, compared with the previous range of EUR 2.0 billion to EUR 2.5 billion.
NOK’s AI-RAN Tech In Spotlight
Hotard highlighted Nokia’s recently launched AI-RAN platform, designed to improve 5G network performance. He added that the platform can more than double spectrum efficiency by 2028, and provide a software upgrade path to future 6G networks.
The AI-RAN technology combines Nokia’s AI-native RAN software with Nvidia’s accelerated computing technology to improve wireless network performance. The platform has already demonstrated more than 20% improvements in spectral efficiency during testing.
What NOK Retail Traders Are Saying
On Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’ territory the previous day with a 34% increase in message volume over the last 24 hours.
A user said, “this is biggest AI play right now with such low multiple ...lot of revenue and solid execution ....”
Another user said, “The bears can try to take it down on net cash but the market will ignore it. They want to see AI growth! Exits Q2 with €2.78B in net cash and €5.18B in cash & investments. Balance sheet remains exceptionally strong despite restructuring and continued AI investment.”
NOK stock has surged over 58% year-to-date.