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Discover the latest on Nokia Oyj stock (NYSE: NOK) including its recent AI-network pivot, Q3 results, valuation, risks and outlook in 2025. A comprehensive investor guide.
Introduction
Nokia has long been a familiar name in telecommunications and mobile phones. In recent years, however, it has shifted its emphasis towards network infrastructure, cloud and data-centre communications, licensing, and next-generation connectivity. For an investor, understanding Nokia stock means asking: has this pivot translated into sustainable growth, and does the current valuation reflect the potential ahead?
In 2025, Nokia is operating in a dynamic environment: the demand for 5G and beyond (including 6G) networks is expanding; hyperscale data-centres and AI-enabled infrastructure are growing; and global telecom equipment competition remains intense. At the same time, macro risks such as currency swings, tariffs and supply-chain disruptions are non-negligible. This article synthesises Nokia’s current position, recent performance, and outlook, offering a practical lens for the investor.
Company & Business Overview
Founded in 1865 in Finland, originally as a pulp mill and cable works, Nokia Oyj today is a multinational telecommunications equipment, software and services company. (Wikipedia)
Business segments
According to Simply Wall St, Nokia operates four primary segments:
- Network Infrastructure
- Mobile Networks
- Cloud & Network Services
- Nokia Technologies (licensing, patents) (Simply Wall St)
Strategic pivot
In recent years Nokia has moved away from being purely a handset-maker (its peak mobile era is well documented) into infrastructure and network solutions. (Wikipedia)
Notably, in October 2025 Nokia announced a strategic investment from Nvidia Corporation of US$1 billion for roughly a 2.9% stake, aimed at AI-networking infrastructure and data-centre communications. This deal spurred Nokia shares to jump ~20 %. (Reuters)
Thus Nokia is positioning itself for the “AI communications” era and next-generation networks (6G and beyond).
Recent Financial Performance & Stock Behaviour
Stock Price & Market Metrics
As of late October 2025 Nokia stock (NOK) was trading at multi-year highs following the Nvidia announcement. (Reuters)
According to Simply Wall St, Nokia has a market capitalisation of ~US$33.7 billion, and the platform estimates its fair value at approximately US$5.76, suggesting the stock may be overvalued relative to intrinsic value. (Simply Wall St)
Other platforms note analyst consensus as “Moderate Buy”. (MarketBeat)
Earnings & Outlook
Despite some positive signs, Nokia has faced headwinds. For example, in 2025 it cut its operating-profit outlook because of currency and tariff pressures. (The Wall Street Journal)
Additionally, the company reported a profit beat in a recent quarter (Q3) but noted some sales decline driven by weaker markets (e.g., India). (AP News)
Catalyst — Nvidia Deal
The aforementioned deal with Nvidia provides a meaningful catalyst: Nokia will issue over 166 million new shares at US$6.01 per share to Nvidia. (Reuters)
The tie-up with Nvidia signals Nvidia’s confidence in Nokia’s data-centre communications and network infrastructure business, which may unlock higher growth than prior periods.
Investment Opportunities
Growth drivers
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AI & Data-Centre Infrastructure: The Nvidia investment and strategic collaboration position Nokia towards the edge of AI networking demand.
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Next-Generation Networks (6G/Cloud/Edge): Nokia’s infrastructure pieces may benefit from telecom operators upgrading networks for 5G/6G, private wireless networks, enterprise services.
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Licensing Revenue: Through Nokia Technologies, the company holds a large patent portfolio which can generate recurring revenue.
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Emerging-Market Expansion: As connectivity expands in Asia-Pacific, Latin America and Africa, Nokia is exposed to high-growth segments of telecom build-out.
Valuation & Yield
While the growth story is compelling, the valuation window appears tighter: Simply Wall St suggests the stock may be overvalued relative to fair value. (Simply Wall St)
Dividend yield remains modest; investors seeking income may need to weigh whether Nokia’s dividend growth path is strong enough relative to peers.
Risks & Challenges
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Currency & Tariff Headwinds: Nokia’s earnings have been negatively impacted by a weaker U.S. dollar vs euro and by tariffs. (The Wall Street Journal)
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Competitive Pressures: In network infrastructure, Nokia competes with Ericsson AB, Huawei Technologies Co., Ltd. and others — margin pressure is real. (AP News)
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Customer Investment Cycles: Telecom operators and enterprises often delay major network spends in challenging macro-environments. A dip in capex can hurt Nokia’s order book.
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Dilution Risk: The Nvidia deal involves issuing new shares; dilution could affect per-share metrics and investor returns. (Reuters)
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Execution Risk: Transitioning from legacy products to high-growth infrastructure and AI services is non-trivial; execution missteps could derail expectations.
Outlook & Scenarios
Base Case
If Nokia executes on its AI-network collaboration and network infrastructure business rebounds, the stock could deliver moderate upside from current levels. Investors moderate their expectations, valuing the company at a modest premium to fair value.
Bull Case
In a scenario where AI-driven data-centre networking becomes a large growth driver and Nokia captures a meaningful share, the company could unlock substantial upside — turning the valuation gap into a growth premium.
Bear Case
If global telecom capex slows, currency appreciations hurt margins, and Nokia fails to execute, then downside risk emerges: the valuation falls closer to conservative fair-value estimates or below.
FAQs
1. What is Nokia stock symbol and how can I buy it?
The U.S.-listed American Depositary Receipt (ADR) of Nokia Oyj trades under the ticker NOK on the New York Stock Exchange (NYSE). (MarketWatch) You can buy it through any licensed brokerage account offering U.S. equities.
2. Why did Nokia stock rise sharply in October 2025?
Nokia announced that Nvidia would invest US$1 billion for about a 2.9% stake in Nokia, and the companies would collaborate on AI-networking and data-centre infrastructure. That news triggered a ~20 % stock rise. (Reuters)
3. What are the main risks impacting Nokia’s future performance?
Key risks include currency fluctuations, tariffs and trade-headwinds, competitive pressures in telecom infrastructure, potential dilution from new share issuances, and slower investment cycles among customers (telecom operators and enterprises). (The Wall Street Journal)
4. Is Nokia considered undervalued or overvalued right now?
Different analysts differ: Simply Wall St suggests Nokia may be overvalued relative to its estimated fair value (~US$5.76) versus current trading levels. (Simply Wall St) Other platforms rate it as a “Moderate Buy” based on potential growth. (MarketBeat)
5. What growth opportunities does Nokia have ahead?
Nokia stands to benefit from: • the growth of AI-driven data-centre communications, • next-generation network upgrades (5G/6G), • expansion of cloud-native network services and enterprise/private wireless, and • licensing revenue from its extensive patent portfolio.
Conclusion
In 2025, Nokia represents a company at the intersection of telecom infrastructure and emerging AI/data-centre networking. The strategic collaboration with Nvidia signals that Nokia could be advancing into higher-growth terrain. That said, the valuation appears stretched relative to some fair-value models, and risks remain material. For an investor, Nokia stock may offer an interesting speculative allocation in a diversified technology or telecom portfolio — provided one accepts the execution and macro risks. A prudent approach would be moderate weighting, close monitoring of catalysts (especially AI/data-centre growth) and an understanding that meaningful upside may require patient holding.
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