Opinions David Fingold
NokiaNOKDON'T BUYApr 10, 2018
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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They once dominated cell phones, then left for dead a long time ago. But NOK has tripled in the past year, because it's become an AI infrastructure story. NOK's hardware allows data centres to move data around networks quickly with low latency. Last October, Nvidia partnered with Nokia to build commercial-grade, AI radio-access networks and will invest $1 billion in Nokia. NOK is up 165% in 6 months. NOK can make every cell tower into a distributed AI node. NOK's AI and cloud net sales in Q1 were up 49% and booked 1 billion euros of AI and cloud orders. Cash flows and revenues are strong. The new CEO is another positive. They target annual comparable operating profit from 2 billion euros in 2025 to 2.7-3.2 billion by 2028. Problem is, he's late to the game and the stock is already up and has an Nvidia halo. Because NOK is tied to AI sentiment, NOK has to deliver. Also, the legacy telco business remains a big part of their business. Telcos are a choppy business. You could buy a small position or wait for a pullback.
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Premium contentIn the last quarter, the company reported 0.06 USD per share, beating the 0.04 USD estimate by 32.96%. Revenue for the same period reached 5.27 B USD, despite the estimate of 5.33 B USD. For the next quarter, analysts expect 0.06 USD in earnings per share and 5.60 B USD in revenue. Social media mentions are up 819% in the past 24h.
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People don’t hear much about Nokia for a reason. He has stayed away from companies that build legacy wireless infrastructure because of the transition to 5G. 5G wireless is more dependent on software, on the configuration of the local network nodes, and on the needs in the local area. 5G will displace landlines. Because development and deployment requires so much precision work, you have to get into metrology to do it. He prefers Keysight, the old HP, in this space. Keysight will provide the tools for the service providers, who will otherwise rely on generic hardware.