Nokia Corp (NYSE:NOK) shares are trading higher on Tuesday, despite a lack of company-specific news for the session. The stock is gaining as AI data center demand and a raised full-year profit outlook keeps buyers engaged.
- Nokia stock is surging to new heights today. What’s behind NOK gains?
What Is Driving Nokia’s Stock Growth?
Nokia in late July reported beat-and-raise second-quarter results topped with strong demand for AI data center products, though its stock edged lower in premarket trading. Net sales rose 8% year-over-year to 4.82 billion euros ($5.60 billion), slightly exceeding consensus estimates, while adjusted earnings reached 8 cents per share (vs. 7 cents expected).
Growth was fueled by a 12% rise in Network Infrastructure revenue, driven by Optical Networks (+19%) and IP Networks (+15%), along with a 6% increase in Mobile Infrastructure sales.
CEO Justin Hotard highlighted Nokia’s expanding reach beyond traditional telecom into AI infrastructure. Revenue from AI and Cloud more than doubled (+103%) to represent 9.3% of total group sales, backed by 2.8 billion euros in new AI and cloud orders. Addressing industry-wide memory shortages expected through 2027, Hotard noted plans to secure long-term supply deals, adjust product designs, and pass on higher costs to buyers.
To support its AI expansion, Nokia agreed to acquire an NXP Semiconductors chip fabrication campus in Chandler, Arizona, to produce optical components for AI data center chips starting in 2027. Additionally, Nokia is partnering with NVIDIA on AI-driven networking technology to double wireless data transmission efficiency.
Nokia Stock: Critical Levels To Watch
From a longer-term trend view, the stock is still in “repair mode” after the July breakdown: it’s trading 3.4% below the 20-day SMA ($10.32) and 21.7% below the 50-day SMA ($12.73), which tells you the intermediate trend remains pressured despite today’s pop. The more constructive piece is the longer baseline—shares are 8.3% above the 200-day SMA ($9.21), so the bigger uptrend from the past year hasn’t fully cracked.
Momentum is improving: MACD is above its signal line with a positive histogram, which typically signals that downside pressure is easing and buyers are starting to regain control. That said, the 20-day SMA sitting below the 50-day SMA keeps a bearish crossover in place, so bulls generally want to see follow-through that starts reclaiming those shorter averages rather than a one-day spike.
- Key Support: $10.00 — a nearby round-number area that’s acting like a pivot zone as price tries to stabilize after the July selloff
Nokia Stock Verdict: Momentum and Quality Analysis
Below is the Benzinga Edge scorecard for Nokia, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 92.92) — The stock is showing strong relative strength versus the broader market, consistent with its sharp 12-month run.
- Quality: Neutral (Score: 50.97) — The fundamentals read more “middle of the pack,” so execution matters if the company is leaning into AI-driven growth.
- Value: Neutral (Score: 51.2) — Valuation looks roughly balanced on this model, though the headline P/E suggests the market is paying up for the current narrative.
- Growth: Neutral (Score: 42.5) — Growth is present but not dominant in the score, implying the market may still want proof that AI demand can stay durable.
The Verdict: Nokia’s Benzinga Edge signal reveals a momentum-driven story with more neutral readings on growth, value, and quality. For longer-term bulls, the setup improves most if price can build a base above $10.00 and start reclaiming the 20-day and 50-day moving averages.
Nokia Stock Price Movement Today
NOK Stock Price Activity: Nokia shares were up 6.41% at $9.96 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
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