Nokia Investors Won’t Like This: Jim Cramer Says NOK Stock Is a Buy

Jim Cramer praised Nokia (NOK) on CNBC, stating he considers it a strong investment and suggesting buying the stock immediately. However, the Inverse Cramer strategy, which profits from defying his predictions, has delivered a 172% return over three years, casting doubt on his endorsement. Nokia's partnership with Microsoft has expanded its AI-powered telecom automation platform, and Q2 revenue more than doubled to $509 million year-over-year.

Despite this growth, Q2 free cash flow turned negative at $835 million due to $445 million in restructuring costs.

Nokia's share price has climbed 133% over the past year and 65.14% year-to-date, hitting a 52-week high of $17.36. The company's market capitalization is now around $58.95 billion. CEO Justin Hotard has restructured the company around AI, which he calls the AI supercycle. Q2 2026 results showed revenue of $5.49 billion, beating estimates by 13.79%, and EPS of $0.0799, also surpassing consensus.

Hotard revealed plans to acquire NXP's semiconductor fabrication campus in Chandler, Arizona, to address supply constraints and boost production. Nokia is also building a new optical fabrication facility in San Jose and increasing test capacity in Pennsylvania. The company carries a high P/E ratio of 70 (forward P/E of 22) and has mixed analyst sentiment, ranging from strong buys to a strong sell.

Nokia expects to face EUR 800 million in total restructuring charges in 2026 as it integrates its China operations and streamlines its European footprint.