Nokia (NOK) Stock Gets Buy Rating as AI Optical Business Gains Traction

TLDR

• Rosenblatt initiated Nokia with a Buy rating and a $15 price target, citing its optical networking business as a key AI infrastructure play.
• Nokia’s Optical Networks revenue grew 20% year-over-year in Q2 2026, with AI and Cloud revenue more than doubling.
• AI and Cloud orders hit €2.8 billion in Q2, with roughly half expected to convert within 12 months.
• Nokia and Telxius have partnered to deploy Nokia’s ICE-X 800G coherent pluggable optics across terrestrial networks in Europe, the U.S. and Latin America.
• Rosenblatt models Nokia’s 2028 operating margins above 15%, up from 11.5% in 2026.

Rosenblatt kicked off coverage of Nokia with a Buy rating and a $15 price target on Monday, making the case that the Finnish telecom equipment maker is being undervalued for its growing optical networking business.

Analyst Mike Genovese said Nokia’s Network Infrastructure segment is “quietly becoming one of the best-positioned optical assets in the AI buildout.” That’s a pointed argument given Nokia still trades at a telecom-equipment valuation rather than an AI infrastructure multiple.

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