Rosenblatt starts Nokia at Buy on AI optical franchise potential
Rosenblatt initiated coverage of Nokia (NOK) with a Buy rating and $15 price target, citing its optical networking business as a key beneficiary of AI infrastructure growth. Optical Networks revenue grew 20% YoY in Q2 2026, with AI and Cloud orders reaching €2.8B. The analyst expects significant growth in the optical data center interconnect market, estimating it could reach $40B-$50B by 2030. Nokia's other segments are expected to see low-single-digit growth with margin improvements.
How this was made
The 30-second read
Why it matters
Analyst initiation could attract institutional interest and trigger short‑covering.
Market read
The upgrade adds a fresh bullish catalyst for NOK, aligning with broader AI infrastructure trends.
What to watch
Capital intensity of new laser facilities and competitive pressure from Ciena could constrain margins.
Background
Rosenblatt's new coverage follows recent strong AI and cloud revenue growth at Nokia.
Ticker impact
Rosenblatt initiates coverage with a Buy rating and a $15 price target, highlighting Nokia's AI optical networking growth.
Potential upside of 5‑10% over the next weeks if the market digests the new target.
Buy rating and $15 target are higher than current price, supported by 20% YoY growth in optical networks and expanding AI orders.
Market effects
Highlights growing AI demand for optical networking, benefiting peers in telecom equipment.
Positive for European telecom hardware exporters and U.S. AI infrastructure supply chain.
Signals broader shift of telecom gear makers toward AI data‑center markets.
Counterpoint
If AI spend slows, Nokia's optical segment may not meet growth expectations, limiting upside.
Key entities
- Research FirmRosenblatt
Equity research boutique that initiated coverage of Nokia.
- CompanyNokia
Finnish telecom equipment maker expanding into AI optical networking.
