Nokia Corp (NYSE: NOK) shares extended their rally on Thursday, rising 2.81% to $10.63, as investors continued to re-evaluate the company’s valuation based on its expanding role in artificial intelligence infrastructure. The surge followed the release of second-quarter results that exceeded consensus estimates, with management raising the full-year profit outlook. This shift in sentiment highlights Nokia’s transition beyond its traditional telecommunications identity to become a key beneficiary of the AI boom.

The company reported net sales of 4.82 billion euros ($5.60 billion) for the quarter, representing an 8% year-over-year growth. Adjusted earnings per share came in at eight cents, surpassing the expected seven cents. Network Infrastructure revenue grew by 12%, fueled by significant gains in Optical Networks (+19%) and IP Networks (+15%). These operational improvements underpin the raised guidance provided by CEO Justin Hotard.

Financial Performance Highlights

A critical driver of this performance was the explosive growth in AI and Cloud revenue, which doubled (+103%) to account for 9.3% of total sales. This segment was supported by 2.8 billion euros in new AI and cloud orders. Hotard highlighted this expansion as evidence of Nokia’s increasing reach into high-growth infrastructure markets, distinct from its legacy telecom business.

Supply Chain and Strategic Outlook

Addressing potential headwinds, Hotard outlined a strategy to mitigate memory shortages expected through 2027. The plan involves securing long-term supply deals, adjusting product designs, and passing higher costs to buyers. These measures aim to protect margins amid constrained component availability.

What the Numbers Show

The divergence between the overall revenue growth (8%) and the AI/Cloud segment growth (+103%) indicates a structural shift in Nokia’s revenue mix. While traditional telecom networks remain stable, the rapid adoption of AI infrastructure is becoming a material contributor to the top line, justifying the market’s re-rating of the stock despite broader market volatility (Nasdaq +1.23%, S&P 500 +0.60%).

Technical Levels

Despite the recent surge, Nokia remains below key intermediate-term moving averages. At $10.63, the stock traded about 11.5% above its 20-day simple moving average and 14.6% above its 200-day SMA. However, it remained about 9.8% below its 50-day SMA and 9.1% below its 100-day SMA.

The relative strength index stood at 52.18, a neutral reading suggesting the stock is not overbought despite the sharp gain. Nokia’s RSI reached overbought territory in May before falling to oversold levels in July. A golden cross formed in October 2025 when the 50-day SMA moved above the 200-day SMA, but 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.

Nokia Corporation transferred 957,142 of its own shares to participants in its equity-based incentive plans on August 7, 2026. The transfer, executed without consideration, fulfills the company’s commitments under these plans and reduces its treasury shareholding. This action follows a resolution by Nokia’s Board of Directors, originally announced on October 2, 2025, which authorized the issuance of company-held shares to settle obligations to plan participants.

The transaction reflects Nokia’s ongoing management of its capital structure and employee compensation frameworks. By utilizing treasury shares for incentive plans, the company avoids diluting existing shareholders through new issuances. The transfer was completed in accordance with the specific rules governing Nokia’s equity-based incentive programs.

Shareholding Impact

Following the transfer of 957,142 shares, Nokia Corporation’s total number of own shares held decreased accordingly. The updated figure represents the company’s current treasury position as of August 7, 2026.

The reduction in treasury shares is a routine corporate action aimed at aligning employee incentives with shareholder interests. Nokia continues to hold a significant number of its own shares, which can be utilized for future corporate purposes or returned to circulation as needed.

What the Numbers Show

The transfer of nearly one million shares highlights the scale of Nokia’s equity-based compensation programs. While the absolute number of shares transferred is material, it represents a small fraction of the company’s total outstanding shares, indicating that the impact on overall market capitalization is limited. The retention of over 87 million own shares provides Nokia with flexibility in managing future buybacks or incentive allocations without immediate market impact.

Nokia is a global leader in connectivity for the AI era, with expertise across fixed, mobile, and transport networks. The company’s approach to equity incentives supports its strategy to attract and retain talent in a competitive technology landscape.

For further information, investors may contact Nokia’s Investor Relations team at +358 931 580 507 or investor.relations@nokia.com . Media inquiries can be directed to Maria Vaismaa, Vice President, Corporate Communications, at +358 10 448 4900 or press.services@nokia.com .