Why Is Nokia Stock Surging Wednesday?

Nokia Corp. (NYSE:NOK) stock jumped Wednesday, extending Tuesday’s gains as strong artificial intelligence data center demand and a raised full-year profit outlook fueled investor interest.

Investors are actively re-evaluating the company beyond its traditional telecom focus and pricing it as a key beneficiary of the artificial intelligence boom.

The Nasdaq Composite rose 0.93%, while the S&P 500 gained 0.28%.

Second-Quarter Results Beat Expectations

Nokia reported better-than-expected second-quarter results in late July. Net sales rose 8% year over year to 4.82 billion euros ($5.60 billion).

Adjusted earnings came in at 8 cents per share, topping the 7-cent consensus estimate.

Network Infrastructure sales increased 12%, led by 19% growth in Optical Networks and 15% growth in IP Networks.

AI And Cloud Business Gains Momentum

CEO Justin Hotard highlighted Nokia’s growing presence in AI infrastructure.

AI and Cloud revenue more than doubled, rising 103% and accounting for 9.3% of total sales. Nokia also secured 2.8 billion euros in new AI and cloud orders.

The growth underscores Nokia’s push to capitalize on rising demand for networking infrastructure needed to support AI data centers.

Hotard also outlined Nokia’s strategy for navigating memory shortages expected to persist through 2027.

The company plans to secure long-term supply agreements, adjust product designs and pass higher costs on to customers where appropriate.

Technical Analysis

At $10.40, Nokia traded about 8% above its 20-day simple moving average of $9.59. It was also 11% above its 200-day SMA of $9.32.

However, the stock remained below key intermediate-term levels. Nokia traded about 14% below its 50-day SMA of $11.99 and 12% below its 100-day SMA of $11.76.

The relative strength index stood at 49.34. That is a neutral reading and suggests the stock is not overbought despite Wednesday’s sharp gain.

Nokia’s RSI reached overbought territory in May before falling to oversold levels in July. The stock also broke below support in July before beginning its recent recovery.

A golden cross formed in October 2025 when the 50-day SMA moved above the 200-day SMA. However, the 20-day SMA remains below the 50-day SMA, leaving the shorter-term trend mixed.

Key support sits near $10, a round-number level where buyers have previously stepped in.

NOK Price Action: Nokia shares were up 10.22% at $10.40 at the time of publication on Wednesday, according to Benzinga Pro data.

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