Nokia Sees Price Target Hikes After Nvidia’s $1B Investment

• Bank of America raised its price target on Nokia to $8.07 from $4.64 and maintained a ‘Neutral’ rating, according to TheFly.
• The firm noted that it views this partnership as a strategic inflection point that strengthens Nokia's exposure to AI-native data center switching.
• Nokia announced on Wednesday that it was working with Zayo to deploy a next-generation IP network architecture to enhance the latter’s network connectivity.

Nokia Corp. (NOK) became the top trending ticker on Stocktwits after multiple Wall Street price target hikes following Nvidia Corp.’s (NVDA) announcement of a $1 billion investment in the Finnish telecom equipment maker to accelerate AI-RAN innovation and lead the transition from 5G to 6G.

Nokia said on Tuesday that it would issue 166 million new shares for the $1 billion equity investment by Nvidia, at $6.01 apiece. The transaction will give Nvidia a 2.9% stake in Nokia.

Retail sentiment on Nokia remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Wall Street’s View

Bank of America raised its price target on Nokia to $8.07 from $4.64 and maintained a ‘Neutral’ rating, according to TheFly. The firm said that the Nvidia investment comes in addition to a previously announced strategic partnership with Nvidia to enable next-generation AI native mobile networks and AI networking infrastructure.

The firm noted that it views this partnership as a strategic inflection point that strengthens Nokia's exposure to AI-native data center switching.

Northland also raised its price target on Nokia to $8.50 from $7.50 and maintained an ‘Outperform’ rating on the stock.

U.S.-listed shares of Nokia fell over 2% in early trading. Grupo Santander analyst Carlos Trevino downgraded Nokia to ‘Neutral’ from ‘Outperform’ with a €6.55 ($7.63) price target. The firm said it does not expect the company's partnership with Nvidia to be a "game changer."

Zayo Partnership

Nokia announced on Wednesday that it was working with Zayo to deploy a next-generation IP network architecture to enhance the latter’s network connectivity.

The company said that with this deployment, Zayo's customers will gain access to a broader set of services, including cloud access and data center connectivity over secure high-speed links.

Nokia said that the first phase of deployment is underway in New York and New Jersey, with expansion planned to dozens of additional markets and thousands of lit buildings in the near future.

Shares of Nokia have gained nearly 69% this year and jumped over 56% in the last 12 months. 

€1 = $1.16

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