Opinions Paul Harris, CFA
NokiaNOKBUYJul 21, 2020
Paul Harris, CFAStock price when the opinion was issued
As of Jun 05, 2026. Market Open.
You might be interested:
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.
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
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.
Premium content
Premium content
Premium content
Nokia vs. Ericsson These companies have come into their own since the US government has pressured other government to not use Huawei for their 5G networks. Ericsson has done well in 5G. Nokia made an acquisition of Alcatel-Lucent that was difficult to pull off but has since gotten a lot better. Nokia will do a little better than Ericsson. Nokia has new management.