Nokia (NOK) shares are having a moment. The Finnish telecom giant's stock rose in Friday's premarket session, continuing a volatile week that's been anything but boring for investors. The catalyst? A strategic deal that signals Nokia is all-in on the AI supercycle.
Here's the gist: Nokia is selling its Fixed Wireless Access (FWA) business to Inseego Corp. (INSG). In return, Nokia gets an 11% stake in Inseego through stock and warrants, plus an additional $10 million investment. The two companies also plan to collaborate on 6G and wireless edge technologies. It's a classic case of a company streamlining its operations to focus on what it sees as the bigger prize—infrastructure for the AI boom.
Investors seem to like the move. Nokia's stock is pressing into new 52-week-high territory, trading above its prior high of $12.92. At $13.13, it's 28.7% above its 20-day moving average and 70.3% above its 100-day moving average—a spread that screams strong momentum. The relative strength index (RSI) is at 81.54, which is technically overbought, but in a market that's hungry for AI plays, that might not matter much.
Nokia's recent earnings added some fuel to the fire. Net sales hit $5.26 billion, up 4% year-over-year, driven by a 6% increase in Network Infrastructure from Optical Networks. Earnings per share grew 67% year-on-year to 6 cents, even though some estimates were missed. The company maintained its 2026 operating profit outlook of $2.34 billion to $2.93 billion, with the FWA deal expected to close in the fourth quarter.
Over the past 12 months, Nokia stock has surged 158.72%. Year-to-date, it's up roughly 102%, compared to the S&P 500's 4.8% gain. In premarket trading Friday, shares were up 2.99% at $13.29. Key resistance sits at $13.00, with support at $10.50.
The big picture? Nokia is betting that the AI supercycle will require massive network upgrades, and it wants to be the company providing the pipes. By shedding its FWA business, it's simplifying its model and doubling down on that bet. Whether it pays off remains to be seen, but for now, the market is cheering the strategy.
