Why is Nokia stock rallying today?

Nokia stock experienced a 2.6% increase in pre-market trading today, reversing a 13%+ decline the previous session caused by a sector-wide sell-off in optical and AI infrastructure companies. Rosenblatt Securities played a key role in driving the recovery, upgrading Nokia's stock to a Buy rating and setting a $15 price target just a day earlier.

The analyst argued Nokia's optical networking business was trading at telecom-equipment valuations despite being a direct beneficiary of AI infrastructure buildout. The company's Optical Networks division grew 20% year-over-year in Q2 2026, while its AI and Cloud revenue more than doubled. AI and Cloud orders totaled €2.8 billion in the quarter, with half expected to convert to revenue within twelve months.

Nokia is set to rejoin the Euro STOXX 50 index on September 21, replacing Volkswagen after a one-year hiatus, a move typically prompting automatic buying from passive funds. With broader market environments like the S&P 500, Dow Jones, and Nasdaq all trading lower in pre-market, Nokia's recovery appears to be driven by company-specific factors rather than macro tailwinds.

The sharp sell-off in the previous trading session affected Nokia alongside other peers in the optical communications sector, due to concerns about the pace of AI infrastructure spending, making the Rosenblatt initiation timely counter-narrative. The article was AI-assisted and reviewed by an editor.