Key Highlights
- Nokia shares climbed more than 5% during pre-market hours on September 16, 2026
- Rosenblatt Securities launched coverage with a Buy recommendation and $15 target, suggesting approximately 44% potential upside from the previous closing price of $9.84
- Several telecom carriers in four global regions transitioned AI-RAN technology from testing to live field deployment
- The company is scheduled to return to the Euro STOXX 50 index on September 21, 2026, taking Volkswagen’s place
- Q2 2026 AI and Cloud order intake reached €2.8 billion, with approximately 50% projected to generate revenue in the coming year
Shares of Nokia (NOK) experienced a significant pre-market rally on September 16, 2026, climbing above 5% to approximately $10.35 from the previous session’s close of $9.84. The surge came as multiple positive developments converged simultaneously.
The primary catalyst was Nokia’s disclosure that its AI-RAN solution has progressed beyond preliminary assessments into active laboratory and live network trials with telecommunications providers spanning North America, Europe, Asia-Pacific, and the Middle East. Companies participating in these advanced testing phases include A1 Group, Chunghwa Telecom, du, e&, Mobily, stc, TPG Telecom, and Zain Saudi.
Nokia’s AI-RAN platform leverages NVIDIA’s Aerial RAN technology, positioning the Finnish telecom equipment maker alongside a dominant force in AI infrastructure development.
Adding fuel to the rally, Rosenblatt Securities analyst Mike Genovese launched coverage the previous evening with a Buy rating and established a $15 price target. This valuation represents approximately 44% appreciation potential from the stock’s prior closing level. Genovese characterized Nokia’s Network Infrastructure division as “quietly emerging as one of the most strategically positioned optical players in the AI expansion.”
The analyst report highlighted concrete performance metrics. Nokia’s Optical Networks segment delivered 20% year-over-year revenue growth in Q2 2026. Meanwhile, AI and Cloud-related revenue more than doubled during the identical timeframe.
Strong Order Book Fuels Growth Pipeline
The company’s AI and Cloud order backlog totaled €2.8 billion in the second quarter of 2026. Management anticipates that roughly half of these orders will translate into recognized revenue over the subsequent twelve months, establishing clear visibility for near-term financial performance.
Rosenblatt’s $15 valuation derives from a sum-of-the-parts methodology. The analysis attributes approximately one-third of Nokia’s enterprise value to AI infrastructure operations, with the remaining two-thirds stemming from its telecommunications business. The Fixed Networks and Mobile Infrastructure segments are characterized as low-single-digit growth operations being optimized for profitability enhancement.
Nokia is simultaneously expanding production capabilities. The company’s San Jose manufacturing facility is slated to commence operations in Q4 2026. Pennsylvania-based testing and packaging infrastructure is undergoing a tenfold capacity expansion beginning in Q3 2026. Additionally, a third U.S.-based Indium Phosphide fabrication facility is being established at NXP’s Chandler location.
The company also revealed a collaboration with Telxius to implement its ICE-X 800G coherent pluggable optical solutions throughout terrestrial infrastructure in Europe, the United States, and Latin America.
Index Inclusion Creates Additional Buying Pressure
Nokia’s upcoming return to the Euro STOXX 50 benchmark index on September 21, 2026, where it will replace Volkswagen, has generated index-tracking fund purchases in recent trading sessions.
S&P Global Ratings elevated its outlook on Nokia from stable to positive, acknowledging strengthening demand from AI and cloud computing clients. The ratings agency indicated potential for a one-notch credit rating improvement within the next 24 months if the company maintains cost discipline while successfully capturing hyperscaler customer demand.
Nokia’s second quarter 2026 financial results exceeded earnings expectations while falling marginally short on revenue. Adjusted earnings per share registered $0.08, surpassing the $0.06 consensus estimate. Revenue totaled $5.51 billion compared to the $5.59 billion analyst forecast.
Broader equity markets showed modest gains in pre-market trading on September 16, with the Nasdaq advancing 0.51%, confirming that Nokia’s rally was propelled by company-specific developments rather than general market sentiment.
The Network Infrastructure business unit delivered 12% year-over-year growth in Q2 2026, driven primarily by strength in Optical and IP Networks segments, amplified by the integration of Infinera, which Nokia acquired in February 2025.
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