Nokia Gains Over 60% Year-to-Date as AI Infrastructure Demand Accelerates

Nokia shares have risen more than 60% year-to-date and over 130% across the past 12 months, closing at $10.60 on Sept. 17 as the company expands its footprint in artificial intelligence data center infrastructure, according to a report by Yahoo Finance (https://finance.yahoo.com/technology/ai/articles/cramer-strongly-recommends-buying-beaten-191300424.html). The stock remains below its historic peak near $29, but recent momentum drew attention on the Sept. 16 broadcast of CNBC's "Mad Money," where host Jim Cramer recommended purchasing the stock based on valuation.

Cramer highlighted that Nokia trades at roughly 22 times forward earnings, below the 30-plus forward multiples common among AI-linked infrastructure vendors. He contrasted the company with nuclear power supplier BWX Technologies, which he avoided during the same broadcast due to its 30-times price-to-earnings ratio in a high interest rate setting. Cramer described Nokia as a compelling situation at its current valuation.

Under Chief Executive Officer Justin Hotard, who assumed the role in April 2025 after leading Intel's data center division, Nokia has refocused on AI infrastructure, data center networking, and 6G development. The Finnish vendor supplies optical networking equipment, IP routers, and fiber infrastructure to hyperscalers such as Microsoft and Google, alongside its legacy business selling wireless network hardware to telecommunications carriers.

The strategic repositioning showed traction in the company's second-quarter earnings. Revenue from artificial intelligence and cloud customers more than doubled year-over-year to roughly $509 million. Order intake in that category reached 2.8 billion euros (approximately $3.2 billion), with executive management projecting about half of that total to convert into recognized revenue over the subsequent 12 months. Comparable operating profit increased 18% to 434 million euros, beating consensus estimates.

However, bottom-line results and cash generation reflected substantial restructuring headwinds. Reported net income fell to 5 million euros, and free cash flow recorded a deficit of 732 million euros (around $835 million). Restructuring expenditures accounted for 445 million euros during the quarter as the company streamlined operations in Europe and China. Total restructuring expenses for 2026 are projected at approximately 800 million euros, with completion slated for 2027. Hotard noted in the earnings release that customer demand remains strong while industry supply constraints have encouraged longer-term order commitments.

On Sept. 17, Nokia announced an expanded partnership with Microsoft integrating Nokia Data Suite with the Microsoft Fabric analytics platform. The integration aims to shorten data preparation times for telecom AI workflows from weeks to minutes, driving a 3.8% gain in Nokia shares following the announcement. Silvia Candiani, Microsoft's corporate vice president for worldwide telco and media, noted in a press release that the joint deployment provides a faster route to convert complex network data into operational intelligence.