Nokia shares surge past 10% as Cisco results spotlight AI networking demand
Cisco’s strong fiscal Q3 2026 performance has triggered a sector-wide rally, with Nokia climbing more than 10% on the back of strategic partnerships and a $4 billion US investment commitment.
Nokia shares rose more than 10% following Cisco’s strong fiscal Q3 2026 results, as investors increasingly view the company as a beneficiary of surging AI infrastructure and networking demand. Cisco reported networking revenue of $8.82 billion for fiscal Q3 2026, a 25% increase, driven by heavy spending on AI infrastructure and campus networking gear. Nokia closed at $13.98 on May 15, having risen approximately 116% year-to-date and 169% over the past 52 weeks.
Nokia has secured a $4 billion investment commitment with the Trump administration to expand research and manufacturing in the United States. This commitment adds to the $2.3 billion Nokia is already investing in U.S. manufacturing as part of its Infinera acquisition. The move underscores the company’s strategic pivot towards domestic production capabilities amid intensifying global competition in optical networking and telecom equipment.
Nokia and Nvidia have completed functional tests of GPU-powered AI-RAN workloads with T-Mobile, Indosat, and SoftBank, demonstrating that AI and radio access network functions can run on shared infrastructure. The AI-RAN partnership now includes testing by BT Group, Elisa, NTT DOCOMO, and Vodafone. These collaborations aim to improve network performance and handle the surge in mobile AI traffic by integrating compute and radio access functions more efficiently.
In May 2026, Nokia launched AI tools for home and broadband networks, aiming to improve first-contact help desk success rates above 50% and reduce repeat construction site visits by half. Nokia Federal Solutions and Lockheed Martin introduced a mission-critical 5G solution for the U.S. Department of Defence, utilising open architecture standards. These developments highlight Nokia’s broadening scope beyond traditional carrier infrastructure into enterprise and government sectors.
Bank of America upgraded Nokia from “Neutral” to “Buy,” citing the shift into optical networking post-Infinera deal and leadership changes. Argus upgraded Nokia to “Buy” with a $15 price target, implying approximately 7.6% upside from the May 15 close. The consensus rating among 18 analysts is “Moderate Buy,” with an average price target of $12.89, which is approximately 7.5% below the current share price. Nokia’s next earnings report is scheduled for July 23, with analysts expecting $0.07 earnings per share for the June quarter, a 40% increase year-on-year from $0.05.
