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Nokia (NOK) stock has been in a sharp uptrend ever since the company recorded strong financials for Q1, featuring a remarkable 49% year-on-year increase in artificial intelligence (AI) and cloud infrastructure revenue.
As investors cheered €281 million ($328.8 million) in comparable operating profit and €4.5 billion ($5.27 billion) in total net sales, NOK shares extended gains and reached a 16-year peak of over $11.
Still, for long-term investors, there’s reason to believe that Nokia will rip higher from here through the remainder of 2026.
Is There Any Further Upside Left in Nokia Stock?
Nokia stock looks rather attractive at about 25x forward earnings as it’s evidently taking advantage of the global artificial intelligence buildout.
In Q1, the Finnish multinational booked another €1 billion in fresh AI-related orders, building on billions of dollars worth of orders last year.
Additionally, NOK updated its addressable market forecast for AI and cloud infrastructure to 27% compound annual growth rate through 2028, representing a huge increase from 16% estimated just five months ago.
Nvidia’s (NVDA) recently disclosed $1 billion stake and a healthy 1.52% dividend yield reinforce the broader bull case for Nokia.
Infinera Integration Could Drive NOK Shares Higher
On the earnings call, NOK management confirmed the integration of Infinera is running ahead of schedule, offering another strong reason to invest in the company.
In Q1, the NYSE-listed giant saw its Optical Networks division grow by 20%, while its expectation for the Network Infrastructure segment is to advance another 13% this year.
Following the quarterly release, Argus raised its rating on Nokia shares to “Buy,” with a $15 price target indicating potential upside of nearly 40% from here.
From a technical perspective, Nokia sits decisively above its key moving averages (MAs) with the RSI at about 68 currently, indicating continued momentum ahead.
Nokia Remains Buy-Rated Among Wall Street Firms
As of this writing, Wall Street has a consensus “Moderate Buy” rating on NOK stock, and notable names like Goldman Sachs, Calamos Advisors, and Millennium Management are heavily invested.
Billionaire Howard Marks maintains an 18.7 million-share position in Nokia as well, highlighting broad elite-investor conviction.
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