Nokia Corporation (Nokia (NOK)) stock is taking a little breather on Wednesday, cooling off after a massive Tuesday rally that pushed shares to a fresh 52-week high. As of premarket trading, the stock was down about 1.64% at $16.19, while Nasdaq futures were up 0.52% and S&P 500 futures had gained 0.30%.

So what got investors so excited? It's all about artificial intelligence infrastructure. Nokia has been making some serious moves in that direction, and the market is paying attention.

The telecom giant recently launched an AI Networking Innovation Lab, which is focused on developing next-generation, AI-native data center networking solutions. And they're not going it alone — they've lined up an impressive roster of partners including Advanced Micro Devices (AMD), Keysight Technologies (KEYS), Lenovo Group (LNVGY), Super Micro Computer (SMCI), WEKA, Everpure, and Nscale. That's a lot of firepower aimed at the AI networking space.

But that's not all. Nokia also announced that it secured FCC approval for its in-home broadband devices. The company said this approval allows U.S. broadband device deployments to continue "without disruption," helping keep customer rollouts on track. That's a nice regulatory tailwind for a business that's already getting a boost from AI hype.

And then there's the Nvidia effect. Nvidia (NVDA) recently disclosed a $1.86 billion stake in Coherent Corp. (COHR), which has investors buzzing about optical and AI networking infrastructure. Since Nokia plays in that space too, the positive sentiment is spilling over. It's a classic case of a rising tide lifting all boats — or in this case, all networking stocks.

Now, let's talk about the technical picture, because that's where things get interesting. Nokia's stock is still in a strong uptrend — it's trading 18.5% above its 20-day simple moving average (SMA) of $13.61 and a whopping 121.2% above its 200-day SMA of $7.29. Those numbers tell you just how extended this move has become.

The 20-day SMA remains above the 50-day SMA, and the golden cross that formed back in October 2025 — when the 50-day SMA crossed above the 200-day SMA — is still reinforcing the longer-term bullish structure. So the trend is your friend, as they say.

But here's the catch: momentum is becoming a near-term concern. The Relative Strength Index (RSI) is sitting at 75.17, which is firmly in overbought territory. That doesn't mean the stock has to drop, but it does suggest that the easy gains might be behind us for now.

The most immediate overhead reference is the 52-week high at $16.63, which is close enough to act like a ceiling if traders keep selling into strength. On the downside, the 20-day SMA at $13.61 is the key support level to watch.

So here's the bottom line: Nokia's AI story is real, and the stock has the technical structure to support further gains. But with the RSI flashing overbought and the stock sitting just below resistance, we might see some consolidation before the next leg higher. Keep an eye on that $16.63 level — if it breaks, things could get interesting.