Nokia’s €1 Billion Billings from Hyperscalers Spur a Bold 50% Target Lift at JPMorgan
13.06.2026 - 19:04:57 | boerse-global.de
Nokia’s shares closed Friday at €12.79, adding 5% on the day, as a deluge of AI-linked orders and an aggressive analyst upgrade swept away lingering doubts about the Finnish networking group’s trajectory. The stock has more than doubled since the start of the year and is up roughly 179% over the past twelve months, yet the rally may still have room to run: JPMorgan just raised its price target by a full 50%.
Sandeep Deshpande, the bank’s telecom equipment analyst, lifted his target for the Helsinki-listed shares from €12 to €18 and maintained an “Overweight” rating. For Nokia’s New York-listed ADRs, the target doubled to $21 from $14. Deshpande’s reasoning goes well beyond near-term momentum: he expects Nokia’s operating profit in 2028 to come in roughly 58% above the company’s own target of €2.95 billion. The structural driver, he argues, is a shift in the optical networking market and new switch architectures that consensus estimates have yet to price in.
That optimism is backed by concrete numbers. Nokia disclosed that it has booked roughly €1 billion of new orders from AI and cloud clients, primarily for optical networks — the backbone that links hyperscale data centres. Management responded by raising the 2026 growth outlook for its Network Infrastructure unit to 12%–14%. CEO Justin Hotard called the development an “AI-optical revolution” and flagged higher spending on optical and IP networks. Morningstar analysts confirmed that hyperscalers are increasingly becoming the dominant source of revenue for Nokia.
Should investors sell immediately? Or is it worth buying Nokia?
Parallel to the order windfall, Nokia unveiled an Agentic-AI framework for its Network Services Platform on June 11. The system enables autonomous AI agents to analyse real-world network conditions and take actions within defined safety boundaries. Commercial availability is slated for the end of 2026. The company also announced a 5G modernisation contract in Indonesia with Indosat Ooredoo Hutchison, which aims to lift mid-band 5G coverage to around 80% of the operator’s network within three and a half years. The rollout includes a nationwide AI-RAN deployment on GPU-accelerated platforms.
Nvidia has also emerged as a notable shareholder. The chip giant holds roughly 166 million Nokia ADRs, representing about 8% of Nvidia’s reported equity portfolio — a signal that the two companies’ collaboration extends beyond technology partnerships.
Despite the steep rally, Nokia’s relative strength index stands at 53.9, well short of overbought territory. The stock trades comfortably above its 50-day moving average of €10.95 but remains roughly 15% below the 52-week high of €14.97 touched on June 3. The next major catalyst comes in July, when Nokia reports second-quarter and first-half 2026 results — the first chance to see whether the €1 billion order wave is already feeding into margins.
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