Nokia Jumps 133% to Nearly $14 as Nvidia Deal Lifts 2026 Growth Outlook
Updated
Updated · The Motley Fool · Jun 28
Nokia Jumps 133% to Nearly $14 as Nvidia Deal Lifts 2026 Growth Outlook
3 articles · Updated · The Motley Fool · Jun 28
Summary
Nearly $14 a share, Nokia has surged 133% since last fall and 114% year to date after raising fiscal-year network infrastructure sales growth guidance to 12%-14% from 6%-8%.
The upgrade hinges largely on its Nvidia partnership, with Nokia now expecting IP and optical networks revenue to grow 18%-20% in 2026 versus its prior 10%-12% target.
$1 billion is the value of the deal, under which Nokia and Nvidia are building an AI-enabled radio access network while Nvidia also deploys Nokia switches, SR Linux software and optical gear in data centers.
2027 is when earnings accretion from the 6G side is expected to start, giving the partnership a longer runway beyond the nearer-term data-center boost.
86 times earnings, Nokia's valuation has become stretched after the rally, and analysts remain mixed with a median price target of about $12.
Nokia's valuation has surged on 6G hype, but can it deliver real profits before this potential bubble bursts?
With Nokia's stock soaring, could a critical software flaw derail its billion-dollar 6G partnership with Nvidia?
Will the powerful Nokia-Nvidia alliance truly open the 6G market or just create a new telecom duopoly?
Nokia’s Strategic Leap: How a $1 Billion Nvidia Deal Is Powering Its AI and 6G Resurgence
Overview
Nokia is undergoing a major strategic transformation, highlighted by a $1 billion partnership with Nvidia. This move drives Nokia’s aggressive push into AI-native networks, aiming to build foundational infrastructure for 5G, 6G, and the broader artificial intelligence boom. As a result, Nokia expects increased demand for advanced optical components and network solutions, positioning itself favorably in the evolving digital landscape. By expanding collaborations with major telecom operators, Nokia is solidifying its strategic market position. The immediate financial impact of these initiatives is already visible, signaling a promising resurgence for the company.