Nokia's stock gained over 3% on Monday, driven by a broader market rally and strong Q2 results that highlighted robust demand for AI data center networking products. The company's AI and cloud revenue more than doubled, leading to an increased full-year operating profit outlook, despite short-term technical weakness.
Nokia's stock experienced a significant rally, primarily due to better-than-expected second-quarter results driven by strong demand for AI data center networking products. This AI momentum led to a doubling of AI and cloud revenue and a raised full-year operating profit outlook, signaling a positive long-term trajectory for the company. While the broader market rally provided a supportive backdrop, Nokia's specific corporate performance, particularly in AI, was the key catalyst. Traders should note the positive long-term technical indicators (above 200-day SMA, golden cross) but also be aware of short-term technical weakness (below 20-day and 50-day SMAs) which could lead to volatility. The persistent memory supply constraints through 2027, as highlighted by the CEO, present both a challenge and an opportunity for Nokia to solidify its position in the high-demand AI infrastructure market.