Nokia Corp. (Nokia (NOK)) shares climbed more than 3% on Monday, joining a broad technology rally as investors rediscovered their appetite for risk. The Nasdaq rose 1.00%, the S&P 500 added 0.77%, and the Dow Jones Industrial Average gained 1.16%, with the Russell 2000 also up 0.98%. It was a green day across the board, and Nokia rode the wave.

The move higher comes just days after Nokia reported stronger-than-expected second-quarter results on July 23, powered by red-hot demand for AI data center networking products. Revenue hit 4.82 billion euros, up 8% year over year, while adjusted earnings of 8 cents per share topped Wall Street estimates. The standout number? AI and cloud revenue more than doubled, now accounting for 9.3% of total sales. That prompted the company to raise its full-year operating profit outlook.

CEO Justin Hotard also dropped a reality check: memory supply constraints are likely to persist through 2027 as AI infrastructure demand continues to outpace supply. So the AI boom is real, but it comes with growing pains.

Technical Picture: Support Holds, But Short-Term Trend Is Weak

Let's talk charts. The long-term trend for Nokia is still constructive. The stock continues to trade above its 200-day simple moving average (SMA) of $9.09, a level that has attracted buyers during recent dips. That's the good news.

The not-so-good news? The short-term picture is weaker. Nokia currently trades 18% below its 20-day SMA of $11.36 and nearly 30% below its 50-day SMA of $13.30. Those numbers tell you the stock is still recovering from the summer selloff. Momentum indicators are cautious too: the moving average convergence divergence (MACD) sits below its signal line, and the histogram is negative. That typically means upside momentum is fading, and rallies could fizzle unless buying pressure picks up.

The broader trend is a mixed bag. Nokia's golden cross—formed back in October 2025 when the 50-day SMA crossed above the 200-day SMA—still supports the long-term outlook. But the 20-day average remains below the 50-day average, signaling short-term weakness. The stock is essentially trying to bounce after falling from its June high to its July low.

Key levels to watch:

• Resistance: $9.76, near the 200-day exponential moving average (EMA).
• Support: $9.09, aligned with the 200-day SMA.

If Nokia can break above $9.76, it could start building momentum toward those higher moving averages. If it loses $9.09, the technical picture gets uglier.

What Wall Street Thinks

Analysts are still bullish overall. The consensus rating is Buy, with an average price target of $14.67—that's about 56% upside from Monday's price. Recent analyst moves include:

• JPMorgan: Overweight, raised price forecast to $21 on June 12.
• Argus Research: Upgraded to Buy with a $15 price forecast on April 27.
• Morgan Stanley: Initiated coverage with Overweight and an $8 price forecast on February 9.

That's a wide range of targets, but the overall sentiment is positive. Morgan Stanley's $8 target is the outlier, but even that is close to current levels.

Momentum Is the Star, But Other Factors Are Neutral

Nokia scores well on momentum but posts more balanced readings across other factors. According to market data, the stock's momentum score is a bullish 92.6. Quality (51.95), value (51.14), and growth (40.48) are all neutral. So momentum remains the stock's strongest attribute, but investors are watching whether shares can reclaim those key moving averages to sustain the rally.

ETF Exposure

Nokia also has meaningful exposure in a couple of tech-focused ETFs, which can amplify price moves when money flows in or out:

• Defiance Quantum ETF (QTUM): 2.14% weighting
• First Trust Indxx NextG ETF (NXTG): 2.17% weighting

Large inflows or outflows in these funds can result in corresponding buying or selling of Nokia shares, so keep an eye on them.

Price Action

Nokia shares were up 3.19% at $9.39 at the time of publication on Monday, according to market data. The stock is trying to find its footing after a rough summer, and with AI tailwinds and strong analyst support, the bulls have a case. But the technicals suggest it's not out of the woods yet.