On May 22, 2026, Nokia's stock price jumped 9.55% to 13.26 euros on the Helsinki Stock Exchange, a moment that crystallized months of momentum in artificial intelligence and optical networking. The Finnish telecommunications equipment maker's gain was no outlier — it reflected a broader reshaping of the company's fortunes as it positions itself at the center of the infrastructure boom powering AI workloads worldwide.
The surge came on two fronts. Morgan Stanley upgraded its price target on Nokia from 11 euros to 14 euros while maintaining a Buy rating, signaling confidence in the company's strategic direction. Simultaneously, Nokia unveiled its AI Networking Innovation Lab in California on May 21, a physical embodiment of its commitment to building networking solutions tailored for data centers and telecommunications operators grappling with the computational demands of modern AI systems.
The lab itself marks a shift in how established telecom equipment makers are competing in the AI era. Rather than simply selling traditional network gear, Nokia is now engineering solutions that integrate artificial intelligence directly into network infrastructure — a subtle but significant difference that speaks to where the market is heading. The facility will support development of technologies that leverage recent growth in optical networks and the roughly one billion euros in new AI-related orders the company secured during the first quarter of 2026.
Those Q1 results painted a picture of a company firing on multiple cylinders. Net sales reached 4.5 billion euros, up 2% year-over-year on a reported basis and 4% on a constant currency foundation. More strikingly, comparable gross margin expanded by 320 basis points to 45.5%, while operating margin climbed 200 basis points to 6.2%. The Network Infrastructure segment — Nokia's growth engine — saw sales rise 6%, propelled by a remarkable 20% surge in Optical Networks specifically. Meanwhile, AI and cloud net sales skyrocketed 49% year-over-year, a number that hints at where investor enthusiasm is concentrating.
That strength in optical networking came with momentum. The Infinera acquisition has yielded synergy benefits that are translating directly into data center connectivity solutions for AI workloads. Nokia also secured partnerships in adjacent domains: a collaboration with Lockheed Martin on 5G solutions for military applications, and new agentic AI capabilities announced in May for fixed networks. These moves suggest a company thinking beyond traditional telecommunications into the intersections where infrastructure, defense, and artificial intelligence converge.
The market has taken notice. Nokia's stock has soared more than 100% year-to-date at points in May, reaching levels unseen in over 15 years. Analysts have been adjusting targets upward across the board — Deutsche Bank raised its forecast to 8.50 euros from 7.50 euros in mid-May, while consensus ratings stand at Moderate Buy with average 12-month price targets ranging from 9.71 to 14.54 dollars across analyst groups, with some forecasts reaching as high as 17.43 dollars.
Looking ahead, Nokia has raised its full-year guidance for Network Infrastructure sales growth to 12–14% on a constant currency basis. Management cited strong order intake and margin expansion as supportive factors, with quarterly results scheduled for July 2026. The company maintains a solid balance sheet with net cash of 3.8 billion euros as of the end of Q1, giving it firepower to invest in the infrastructure buildout that AI demand is spurring across hyperscalers and telecommunications operators globally.