Why Is Nokia Stock Falling Friday?

Nokia Corp. (NYSE:NOK) stock declined Friday as a broader technology and semiconductor market sell-off, priced-in artificial intelligence optimism and supply chain warnings prompted a post-earnings pullback.

The movement followed the company’s fiscal second-quarter earnings beat reported on Thursday. The Nasdaq is down 0.87% while the S&P 500 has gained 0.10%, and Technology is the lone sector in the red with a 1.1% loss.

Q2 Financial Highlights Exceed Estimates

Nokia reported second-quarter net sales of 4.82 billion euros ($5.60 billion), up 8% year-over-year, or 9% on a constant-currency basis. The figure topped analyst estimates of $5.59 billion. Adjusted earnings reached 8 cents per share, surpassing consensus estimates of 7 cents.

Network Infrastructure revenue increased 12% year-over-year, led by a 19% gain in Optical Networks and a 15% increase in IP Networks. Mobile Infrastructure revenue grew 6%.

AI Revenue Expansion And Partnerships

AI and Cloud revenue doubled, rising 103% year-over-year to represent 9.3% of total group sales. Nokia secured 2.8 billion euros in orders from AI and cloud customers during the period.

The company agreed to acquire a chip fabrication campus in Chandler, Arizona, from NXP Semiconductors N.V. (NASDAQ:NXPI).

Management Issues Supply Chain Warnings

CEO Justin Hotard told Bloomberg in an interview on Thursday that memory remains the industry’s biggest supply constraint. Hotard stated that management expects shortages to continue through 2027.

Nokia raised its full-year 2026 comparable operating profit forecast to between 2.1 billion euros and 2.6 billion euros.

Technical Analysis

From a trend perspective, Nokia is still trying to stabilize after a larger drawdown: it’s trading 19.9% below its 20-day SMA at $11.55 and 31% below its 50-day SMA at $13.41, which keeps the intermediate trend pointed down. At the same time, it’s holding just 1.9% above its 200-day SMA at $9.07, making the $9 area a key line in the sand for longer-term holders.

Momentum is the bigger story right now, with RSI at 29.76 pushing into oversold territory. The moving-average structure is mixed: the 20-day SMA is below the 50-day SMA (bearish near-term), but the 50-day SMA remains above the 200-day SMA, reflecting the golden cross that occurred in October.

NOK Stock Price Activity: Nokia shares were down 5.55% at $9.19 at the time of publication on Friday, according to Benzinga Pro data.

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