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Corporate Score 52 Bullish

Nokia Shares Surge on Bank of America Upgrade and AI-Driven Optical Network Outlook

Apr 13, 2026 18:39 UTC
NOK
Medium term

Nokia (NOK) saw a significant price jump following a rating upgrade to 'Buy' from Bank of America. Analysts highlighted the company's potential to capture AI-related demand through its optical networks segment.

  • BofA upgraded rating to Buy with a $12.40 price target
  • Stock rose over 9% following the announcement
  • 17% CAGR forecast for optical networks through 2028
  • Infinera acquisition seen as a catalyst for AI workload support
  • Strategic partnership with Nvidia enhances AI positioning
  • Stock has gained roughly 60% year-to-date

Nokia shares climbed over 9% on Monday after Bank of America upgraded the stock from neutral to buy, citing a strong growth trajectory for the company's optical networking capabilities. The stock reached an intraday peak of 10.8% as investors reacted to the bullish outlook. The upgrade is centered on Nokia's ability to leverage AI-driven demand, particularly through the integration of its Infinera acquisition. This strategic move positions the company to support the expanding infrastructure needs of cloud hyperscalers, who require advanced optical technologies to manage AI workloads. Bank of America analyst Oliver Wong projected a compound annual growth rate (CAGR) of 17% for the optical networks segment through 2028. The firm set a one-year price target of $12.40, which suggests additional upside potential from current trading levels. The bullish sentiment is further bolstered by Nokia's earlier partnership with Nvidia, which has reframed the company as a viable AI infrastructure play. As the company generates more revenue from high-margin services for cloud customers, analysts expect significant margin improvements alongside sales growth. This rally contributes to a strong year-to-date performance for Nokia, with the stock now up approximately 60% since the start of the year.

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