Nokia (Nokia (NOK)) shares are climbing Tuesday after the company announced a new partnership with Lockheed Martin (Lockheed Martin (LMT)) to build a modular, open-architecture 5G solution for the military. The idea is to bring commercial-grade 5G into military vehicles, making battlefield communications faster and more secure.

The collaboration between Nokia Federal Solutions and Lockheed Martin is designed to deliver a field-ready 5G capability that fits within the Department of War's framework. This isn't just about slapping a 5G antenna on a tank — it's about building a system that meets the Defense Department's open architecture standards, meaning it can be updated and integrated with other systems over time.

"Moving advanced communications from concept into the field requires discipline, scale, and an understanding of how defense systems are built and sustained," said Sarah Hiza, senior vice president for Technology and Strategic Innovation at Lockheed Martin. "This collaboration is about rapidly delivering capability that can be deployed, sustained and trusted over the long term."

For Nokia, this is a chance to show that its 5G technology can do more than just stream Netflix. The company has been trying to reposition itself as a key player in secure communications, and defense contracts are a big part of that story. As NATO countries increasingly integrate 5G into their military operations, Nokia wants to be the go-to supplier.

Nokia's Recent Moves

This isn't the only deal Nokia has been working on. Last week, the company agreed to sell its Fixed Wireless Access (FWA) CPE business to Inseego Corp. (Inseego (INSG)). In exchange, Nokia will take an approximately 11% stake in Inseego through stock and warrants, plus a $10 million investment. The two companies also plan to collaborate on 6G, AI, and wireless edge technologies. The transaction is expected to close in the fourth quarter of 2026 and is not financially material to Nokia, according to the company.

Counterpoint Research called the deal a strategic move that could significantly expand Inseego's scale, product reach, and global presence. For Nokia, it's a way to offload a noncore business while keeping a foot in the door through an equity stake.

Technical Analysis: Red Flags Amid the Rally

Nokia's stock has been on a tear. Over the past 12 months, it's up 162.28%. That's the kind of return that gets people excited — and also nervous. Currently, the stock is trading well above its key moving averages. The 20-day simple moving average (SMA) sits at $10.71, and the 20-day SMA is 25.2% above the 50-day SMA, which itself is 46.8% above the 200-day SMA. That's a lot of bullish momentum.

But here's the catch: the Relative Strength Index (RSI) is at 80.00. Anything above 70 is considered overbought, and 80 is deep into that territory. When the RSI gets this high, it often means the stock has run up too fast and could be due for a pullback. It doesn't mean the rally is over, but it's a warning sign for anyone thinking of jumping in now.

Nokia is primarily a networking equipment vendor, focusing on wireless networks, Internet Protocol, and optical systems. Its three segments are mobile infrastructure, network infrastructure, and a portfolio business that includes noncore ventures. The Lockheed Martin deal highlights Nokia's push into defense, but the stock's valuation is getting stretched.

MarketDash Edge Rankings

MarketDash's Edge scorecard gives Nokia a mixed report card. Here's how it stacks up against the broader market:

• Value: Weak (Score: 39.72) — The stock is trading at a steep premium relative to peers.
• Growth: Strong (Score: 70.18) — Solid growth potential, driven by deals like this one.
• Quality: Strong (Score: 78.29) — The balance sheet remains healthy.
• Momentum: Bullish (Score: 96.88) — The stock is outperforming the market by a wide margin.

The verdict? Nokia is a momentum-driven story, supported by strong growth and quality. But the weak value score is a red flag for anyone who cares about paying a reasonable price. If you're a momentum investor, this might be your kind of stock. If you're a value investor, you might want to wait for a better entry point.

As of Tuesday's check, Nokia shares were up 3.12% at $13.55.