MS ups Nokia on AI-fuelled demand

Nokia Oyj

15/01/2026 08:10

** Morgan Stanley raises Finnish telecoms equipment maker Nokia NOKIA.HE to "overweight" from "equal-weight" on AI-driven demand

** Nokia's revenues from AI & Cloud are relatively small, accounting for about 6% of group revenues, but they are "growing rapidly fuelled by the data center construction boom" - MS

** Stock up 1.6% at 0808 GMT

** MS highlights Nokia's partnership with NVIDIA NVDA.O, which holds a 3% stake, and strong demand in optical networking as key catalysts

** Nokia's valuation is not fully reflective of the pivot to AI, says the brokerage

** MS also notes geopolitical trends favouring Western suppliers of critical infrastructure, stabilisation in the mobile networks division as positive factors

** Out of the 28 analysts covering the stock, 16 rate it "strong buy" or "buy", seven "hold", and five "sell" or "strong sell" - LSEG

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))