Nordea cuts Nokia's price target to €12 (13), reiterates buy

Nokia (NOK) shares are up over 60% year-to-date due to demand for AI infrastructure. Jim Cramer recommended buying the stock, citing its valuation and AI positioning. Nokia reported Q2 revenue from AI/cloud customers at $509M, with order intake of $3.2B. The company also announced an expanded partnership with Microsoft (MSFT). However, Nokia posted negative free cash flow of $835M in Q2.

Nokia (NOK) will rejoin the EURO STOXX 50 index on Monday, September 21, 2026. Its ADRs closed at $10.68 on Friday, up 0.75%, with volume at 161.9 million shares. The index change could impact about €59 billion in ETF assets. Nokia's July results showed improved comparable profit but a reported loss due to restructuring. The company expects to convert about half of its €2.8 billion AI and cloud orders within 12 months.

Nokia's shares rose 10.67% last week, driven by its AI-focused telecom infrastructure initiatives and a partnership with Microsoft. Analysts view the stock as a Strong Buy with double-digit upside potential, citing its growth prospects in AI and cloud infrastructure. However, challenges like weaker cash generation and supply-chain issues may impact future performance.

Jim Cramer expressed bullish sentiment on Nokia (NOK), citing its partnerships and growth in AI and cloud services. Nokia's Q2 results showed a 105% YoY increase in AI and cloud sales, with CEO Justin Hotard noting €2.8B in AI and cloud orders. However, the company reported a €50M operating loss and negative free cash flow. Nokia expects Q3 operating profit to be in line with Q2, with improvements in Q4. Hedge fund holdings increased to 81 in Q2, while short interest remained low.

Nokia (NOK) rose 63% year-to-date, driven by AI and cloud revenue doubling, while IBM (IBM) fell 20% due to a 42% drop in mainframe revenue. Nokia expects 18-20% growth in IP and Optical segments, supported by a new U.S. chip fab. IBM cut its full-year guidance to 4-5%, citing deferred deals. Both companies have similar five-year returns, but their year-to-date performance diverged sharply.

Nokia (NOK) stock rose 5.03% on AI and defense deals. The company's revenue is $19.22B, with a P/E of 70.7 and price-to-sales of 2.45. Rosenblatt upgraded NOK to Buy with a $15 target, citing AI and infrastructure opportunities. Recent partnerships include Telxius and C3IA, driving investor interest.