Nokia Corporation (NYSE: NOK) shares traded lower by more than 3% on Monday as technology stocks faced broad selling pressure ahead of the company's upcoming third-quarter earnings report.

The decline coincided with a weaker broader market, where the Nasdaq dropped 0.68% and the Technology Select Sector SPDR Fund fell 1.39%, making it the day's weakest sector. Nokia shares were down 3.28% at $10.02 at the time of publication.

Product launch targets AI-driven demand

Separately, Nokia launched a new multi-PON fiber broadband solution designed to help telecom operators upgrade networks as artificial intelligence drives demand for faster connectivity. The solution supports GPON, 10G, 25G, and 50G PON technologies on every port, enabling fiber speeds of up to 50 gigabits per second.

Built on Nokia's Quillion chipset, the technology allows operators to introduce higher speeds on existing fiber networks without replacing hardware. Key features include:

• Up to four times lower upstream latency
• Quantum-safe encryption
• Enhanced network resilience

The company expects the solution to become generally available in 2027.

Technical indicators signal near-term weakness

Nokia is currently trading below its key moving averages, indicating short-term bearish momentum. Despite this dip, the stock has gained 90.91% over the past 12 months, though it has struggled to regain momentum since reaching its 52-week high in June.

Resistance levels are noted near $11, while $9.50 remains a key support level.

Earnings outlook and analyst consensus

Nokia is scheduled to report its third-quarter earnings on October 22. Analysts expect earnings of 8 cents per share, up from 7 cents in the year-ago period. Revenue is projected at $5.80 billion, compared with $5.64 billion in the prior-year quarter.

The stock carries a Buy consensus rating with an average price forecast of $16.50. Recent analyst actions include:

• B. Riley Securities: Initiated coverage with a Buy rating and $15 price forecast (Sept 17)
• Rosenblatt: Initiated coverage with a Buy rating and $15 price forecast (Sept 15)
• JPMorgan: Maintained Overweight rating and raised price forecast to $21 (June 12)

What the numbers show

A divergence exists between Nokia's strong long-term price performance and its current fundamental scores. While the stock has risen 90.91% over the past 12 months, its Benzinga Edge Rankings show mixed fundamentals: Momentum stands high at 89.41, but Quality (42.90), Value (46.87), and Growth (46.49) scores remain moderate. This suggests that recent price appreciation may be driven more by momentum than by immediate fundamental strength, particularly as the company trades below all major moving averages.

Nokia Corporation (NYSE: NOK) shares traded 5.93% higher at $10.80 on Tuesday, driven by investor optimism around AI infrastructure demand and strong technical momentum.

The broader market also advanced, with the Nasdaq gaining 0.63% and the S&P 500 rising 0.70%. Nine of 11 S&P 500 sectors closed higher, reflecting a broadly positive sentiment across equities.

AI infrastructure drives interest

Investor focus on Nokia has intensified as the expansion of AI infrastructure increases demand for higher-capacity networks. The company’s optical and IP networking segments are positioned to benefit from data centers and cloud providers requiring greater bandwidth to connect AI servers and manage growing data volumes. This exposure to telecom infrastructure spending, including next-generation networks, remains a key driver for valuation re-rating.

Technical analysis signals bullish trend

Nokia’s price action indicates improving momentum. The stock is trading 3.4% above its 20-day simple moving average of $10.46 and 6.9% above its 50-day SMA of $10.12. However, it remains 7.6% below its 100-day SMA of $11.71, a level that may act as resistance.

The MACD is above its signal line with a positive histogram, suggesting easing selling pressure. A golden cross formed in October 2025, when the 50-day SMA crossed above the 200-day SMA, continues to support the longer-term bullish trend. Key resistance sits near $11, while support is established near $9.50.

Earnings outlook and analyst consensus

Nokia is scheduled to report earnings on October 22. Analysts expect earnings per share of 8 cents, up from 7 cents in the prior year. Revenue is projected at $5.80 billion, compared with $5.64 billion a year ago.

The stock carries a Buy consensus rating with an average price target of $16.50. Recent analyst actions include:

• B. Riley Securities: Initiated coverage with a Buy rating and $15 price target on September 17.
• Rosenblatt: Initiated coverage with a Buy rating and $15 price target on September 15.
• JPMorgan: Maintained Overweight rating and raised price target to $21 in June.

What the numbers show

A divergence exists between Nokia’s technical strength and its fundamental scores. The Benzinga Edge Momentum score stands at 91.2 (Bullish), significantly outpacing its Quality (45.19), Value (47.31), and Growth (47.44) scores, which remain Neutral. This suggests the current rally is primarily driven by price momentum and sector narrative rather than immediate fundamental upgrades in profitability or valuation metrics.

ETF exposure

The Spear Alpha ETF (NASDAQ: SPRX) holds a 4.15% weighting in Nokia. Significant inflows or outflows from this fund can contribute to short-term buying or selling pressure in Nokia shares.