Nokia (HLSENOKIA) Valuation in Focus Following $1 Billion Nvidia AI Network Partnership
Nokia Shares Surge After Nvidia’s $1 Billion Investment and AI Partnership Deal
Helsinki – Nokia Oyj (HLSE:NOKIA) has become the talk of global markets after Nvidia announced a $1 billion equity investment and a strategic partnership to embed its AI technologies into Nokia’s 5G and upcoming 6G network infrastructure. The collaboration marks a significant milestone in the fusion of artificial intelligence and next-generation telecommunications.
According to market analysts, the Nvidia-Nokia partnership could redefine how networks operate, introducing AI-driven optimization, faster connectivity, and smarter network management. The announcement sparked a 58.65% surge in Nokia’s share price over the past month, lifting the company’s year-to-date return to 46.02%. Over the past year, Nokia’s total shareholder return climbed by 47.58%, more than doubling over the last five years, signaling growing investor confidence in the company’s AI-powered growth trajectory.
Also Read:iPhone 17 Pro PTA Tax Installment Plan Announced in Pakistan
Despite the optimism, investors are debating whether Nokia’s stock remains undervalued or if its AI ambitions are already priced in. Analysts caution that the share price, now trading at €6.31, appears 39.2% overvalued compared to its estimated fair value of €4.53.
“Strategic innovation, disciplined operations, and IP monetization are boosting recurring revenues and long-term profitability,” said one market report. “However, ongoing currency volatility and competition in network and cloud segments remain potential challenges.”
While Nokia’s price-to-earnings ratio (P/E) stands at 40.3x, slightly below the European telecom industry average of 43.1x, it still exceeds the fair benchmark of 31.6x, suggesting potential valuation risk if market enthusiasm cools.
The deal also positions Nvidia as a critical player in the global AI-connectivity race, aligning with its broader strategy to integrate AI computing into core network systems worldwide. For Nokia, the investment provides not just capital but credibility, placing it at the forefront of AI-driven 6G innovation.
The Finnish telecom giant has been expanding its AI and cloud services portfolio, with the Data Command Center and network automation tools now central to its strategy. Industry watchers believe this partnership could accelerate AI integration across global telecom networks, giving Nokia a competitive edge against rivals like Ericsson and Huawei.
Still, analysts warn that high expectations may amplify volatility. “The market is pricing in aggressive growth assumptions,” said a report from Simply Wall Street. “If earnings momentum falters or AI deployment faces delays, sentiment could shift quickly.”
For now, Nokia’s alliance with Nvidia symbolizes a powerful bet on the future of intelligent connectivity, merging AI, cloud computing, and 5G/6G infrastructure, a frontier that could define the next era of telecommunications.
