JPMorgan backed Nokia’s AI and cloud growth potential, citing stronger future earnings potential.

  • JPMorgan remains bullish on Nokia, keeping an Overweight rating and a $21 price target. 
  • JPMorgan sees Nokia as an underappreciated AI and cloud beneficiary, with its order pipeline pointing to stronger 2027-28 earnings. 
  • Nokia plans to scale back its China operations, cutting jobs and closing sites by year-end.

Nokia Oyj (NOK) stock gained overnight as JPMorgan highlighted the company’s growing AI and cloud opportunity, saying investors may be underestimating its future revenue potential. The firm expects Nokia’s order pipeline to support stronger earnings in 2027 and 2028. 

JPMorgan Sees Nokia’s AI Upside Gaining Momentum

JPMorgan continues to rank Nokia among its preferred stocks, maintaining an ‘Overweight’ rating and a $21 price target, implying over 100% upside to the stock’s last closing price. 

JPMorgan believes investors may be underestimating Nokia’s opportunity to benefit from rising demand for artificial intelligence and cloud infrastructure.

The firm added that Nokia’s current order pipeline points to stronger earnings in 2027 and 2028 than what analysts currently expect. JPMorgan argues that the market has been slow to reflect that potential in the company’s valuation.

Nokia has also strengthened its position in internet protocol networking, adding another potential growth driver as data traffic and AI-related infrastructure spending increase. 

Nokia stock traded 1% higher overnight ahead of Thursday. 

Nokia’s AI And Cloud Orders Surge, Boosting Outlook 

Last month in its second-quarter earnings, Nokia said its Q2 sales rose 8% year-on-year to €4.815 billion ($5.5 billion), while EPS came in at €0.07, both matching Street estimates. Network Infrastructure led growth with a 12% increase, while AI and cloud customer sales more than doubled.

Nokia won €2.8 billion in new AI and cloud orders, with about half expected to be realized as revenue within a year. Operating profit increased 18% to €434 million, while Nokia raised its 2026 profit forecast to €2.1 billion-$2.6 billion. 

Also, a SCMP report said Nokia is planning to reduce its mainland China operations, slashing most local jobs and shutting down sites by year-end as domestic rivals gain market share. The company’s China revenue has nearly halved since 2019, while its share of overall sales has declined considerably. 

What Nokia Retail Traders Are Saying 

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory. 

A user said, “One of the most attractive companies out there.. Still makes me wonder after its fundamentals and the diversification of what its working on how it is valued at low double digits? Nokia is building a huge AI industry and can contribute a lot to this AI era. ER was decent and shows real driven growth. Still holding and buying every dip.” 

Another user said, “I suspect that US government asked Nokia to wind down its operations in China as a precondition to receive government investment.”

NOK stock has gained over 56% year-to-date. 

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