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Nokia Corp. (NOK) is having a moment. The stock jumped more than 10% on Wednesday, building on Tuesday's gains, as investors increasingly see the Finnish telecom gear maker as a key player in the artificial intelligence boom, not just a legacy telecom supplier.
The broader market was also in a risk-on mood, with the Nasdaq Composite up 0.93% and the S&P 500 gaining 0.28%, but Nokia's move was clearly company-specific.
The catalyst for the recent surge came in late July when Nokia reported second-quarter results that beat expectations. Net sales rose 8% year over year to 4.82 billion euros ($5.60 billion), while adjusted earnings came in at 8 cents per share, topping the 7-cent consensus estimate.
Network Infrastructure sales were particularly strong, up 12%, with Optical Networks jumping 19% and IP Networks growing 15%. That's the kind of growth that gets investors excited about a company that has been seen as a slow-growth telecom play.
CEO Justin Hotard is making it clear that Nokia's future is tied to AI infrastructure. AI and Cloud revenue more than doubled, rising 103% and now accounting for 9.3% of total sales. The company also secured 2.8 billion euros in new AI and cloud orders, underscoring its push to capitalize on the massive demand for networking gear needed to support AI data centers.
Hotard also addressed the memory shortage that's expected to persist through 2027. Nokia's strategy: secure long-term supply agreements, tweak product designs, and pass higher costs on to customers where appropriate. It's a pragmatic approach that suggests the company is thinking ahead about supply chain risks.
At $10.40, Nokia is trading about 8% above its 20-day simple moving average of $9.59 and 11% above its 200-day SMA of $9.32. That's a positive sign for short-term momentum.
But the stock is still below its intermediate-term moving averages. It's trading about 14% below its 50-day SMA of $11.99 and 12% below its 100-day SMA of $11.76. So while the recent rally is encouraging, Nokia hasn't fully recovered from its July slump.
The relative strength index (RSI) stands at 49.34, which is neutral. That means the stock isn't overbought despite Wednesday's sharp gain, leaving room for further upside. For context, Nokia's RSI hit overbought levels in May, then fell to oversold in July, before the recent recovery began.
One technical bright spot: a golden cross formed in October 2025 when the 50-day SMA crossed above the 200-day SMA. However, the 20-day SMA remains below the 50-day SMA, so the short-term trend is still mixed.
Key support sits near $10, a round-number level where buyers have previously stepped in. If the stock can hold above that, the path of least resistance could be higher.
NOK Price Action: Nokia shares were up 10.22% at $10.40 at the time of publication on Wednesday.
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