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BlackBerry, IBM, and Nokia Are All Trying to Come Back. History Says Only One Survives
Fri, 26 Jun 2026 12:10:42 +0000
The post BlackBerry, IBM, and Nokia Are All Trying to Come Back. History Says Only One Survives appeared first on 24/7 Wall St..
Although Wall Street typically buries its dethroned category kings without ceremony, three former tech titans have spent the past year clawing their way back into the investor conversation. BlackBerry (NYSE: BB) has vaulted 172.8% year to date, Nokia (NYSE: NOK) has piled on 114.8%, and International Business Machines (NYSE: IBM) still commands a $242.7 billion market capitalization after divesting Kyndryl and rebuilding around hybrid cloud. But the long memory of public markets says only one type of comeback actually endures. The historical pattern is unforgiving: fallen tech leaders survive when they abandon the consumer battlefield and rebuild around an enterprise moat, and they fail when they chase the next consumer hype cycle.
The textbook precedent is IBM itself. When Lou Gerstner arrived in 1993, the company was hemorrhaging cash as the PC era eroded the mainframe’s pricing power. His pivot away from boxes and toward services, software, and consulting became the template every fallen tech name has tried to copy. Satya Nadella ran a similar playbook at Microsoft a generation later by stepping away from the Windows-phone war and rebuilding around Azure. Apple’s 1997 reinvention stands as the rare consumer-side exception, and exceptions do not make policy. The verdict that the record delivers is consistent: picks-and-shovels enterprise suppliers tend to survive, while consumer-comeback bets usually do not.
IBM: The Original Blueprint, Running It Again
IBM is now attempting Gerstner 2.0. Arvind Krishna shed Kyndryl, paid $34 billion for Red Hat in 2019, and re-anchored the company on hybrid cloud, mainframes, and generative AI. Q1 2026 revenue rose 9.5% year over year, and the IBM Z mainframe line grew 51% as enterprises retooled for AI workloads. The stock trades at 23 times trailing earnings with a 2.6% dividend yield, and the company has raised its payout for 31 consecutive years. Over the past five years, IBM shares have returned 84.0%, a measured rerating rather than a euphoric one. Analysts carry an average price target of $293.89.
BlackBerry: The Cleanest Break From the Old Battlefield
BlackBerry sold its handset business long ago and re-emerged as an embedded-software and secure-communications pure play. Q1 FY27 revenue jumped 25.6% to $152.9 million, with the QNX segment delivering $72.3 million at an 86% adjusted gross margin. QNX now sits inside more than 275 million vehicles with a royalty backlog near $950 million, and the company has partnered with Nvidia on QNX OS for Safety 8.0 integrated with Nvidia IGX Thor. CEO John Giamatteo told investors, “We are no longer a company in transition. We are a growth company.” The catch lives in the multiple. BlackBerry trades at 96 times trailing earnings and 53 times forward earnings, against an analyst consensus price target of $6.43 while the stock changes hands above $10. The business is improving, but the valuation has run ahead of it.
Nokia: True Reinvention or Cyclical Telecom Rebound?
Nokia sold its handset arm to Microsoft in 2014, divested HERE maps, and now positions itself as a telecom and AI-infrastructure supplier. Q4 2025 revenue of $7.12 billion beat consensus by 17.0%, with Optical Networks revenue of $2.8 billion, soaring on AI and cloud demand following the Infinera acquisition. Nvidia took a $1 billion equity stake as part of an AI-RAN partnership. The reinvention case, however, is only partial. FY25 net income still fell 49% to $737 million, and the stock trades at 87 times trailing earnings against an analyst price target of $14.89. The optical and IP-routing lines look structural; the mobile-networks legacy still moves with carrier capex cycles.
The Ranked Verdict
Score each name against the Gerstner survivor profile, the test of whether a company has abandoned the old consumer field and rebuilt around a durable enterprise moat—and a ranking emerges:
IBM. Closest match. It wrote the playbook, scaled it, and is running it for a second cycle with mainframes and generative AI as the wedge. A 35.8% return on equity and three decades of dividend hikes are the receipts.
BlackBerry. The cleanest narrative break from its old consumer identity, but the smallest scale and the richest multiple. The QNX thesis has substance; the price now demands flawless execution. Recent filings show a genuine business inflection.
Nokia. Mid-pivot. Optical and AI-RAN are the right adjacencies, yet the mobile-networks legacy still trades on telco capex. Treat part of the rerating as cyclical until the structural mix proves otherwise.
Long term, Wall Street still rewards companies that pick a durable enterprise lane and stay in it. The historical record says investors who confuse a cyclical bounce with a structural reinvention tend to learn the difference the expensive way. The past three decades of fallen-titan comebacks suggest the survivor profile is built quarter by quarter, not bought in a single rerating.
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Jim Cramer Says Nokia Is Back: How a 20-Year Smartphone Casualty Became an AI Infrastructure Play
Thu, 04 Jun 2026 12:45:49 +0000
... Jim Cramer Says Nokia Is Back: How a 20-Year Smartphone Casualty Became an AI Infrastructure Play]]>
The post Jim Cramer Says Nokia Is Back: How a 20-Year Smartphone Casualty Became an AI Infrastructure Play appeared first on 24/7 Wall St..
Jim Cramer spent a segment on CNBC’s Mad Money on June 2, 2026 reintroducing investors to a company most stopped thinking about around the launch of the original iPhone. “Take Nokia, a river in Finland that seemed to run dry nearly 20 years ago,” Cramer said. “Back in the pre-smartphone days, Nokia dominated the cellular space. But once Apple and Android came along, people stopped thinking of it as a growth company, and it became more of a history lesson.”
However, the history lesson now has a sequel. Nokia (NYSE:NOK) is up 157% year to date and 209% over the past twelve months, with retail traders on Reddit calling it “the backbone of AI infrastructure” in a post that pulled 2,092 upvotes on r/wallstreetbets. Cramer is selling the idea that Nokia quietly became a critical vendor in the AI buildout while nobody was looking.
From smartphone casualty to AI radio access
The pivot has two pieces. One is optical networking, which Nokia bulked up on by acquiring Infinera for $2.3 billion, a deal Cramer called “a tremendous buy” that gave Nokia scale in the data center interconnects consuming a growing share of the AI capex cycle. The other is AI-RAN, embedding AI compute directly into wireless networks so inference happens at the cell tower instead of round-tripping to a hyperscaler. “The new Nokia is about the infrastructure that lets data move closer to where it’s needed,” Cramer said. The frame is edge AI for latency-sensitive applications.
Why NVIDIA wrote a billion-dollar check
NVIDIA (NASDAQ:NVDA) wrote Nokia a check. In October 2025, NVIDIA announced a strategic partnership and invested $1 billion in Nokia at $6.01 per share. With the stock now at roughly $16.85, that position has already returned roughly 170% in about six months, putting it alongside Jensen Huang’s other public infrastructure bets in Intel, CoreWeave, Lumentum, and Coherent. The strategic logic runs both ways: NVIDIA gets a path into the radio access network and a credible 6G partner, and Nokia gets the imprimatur Cramer cares about. “If Jensen Huang loves it, you know what? Good enough for me,” he said.
The numbers that justify the rerating
The fundamentals back the narrative. Nokia’s AI and cloud net sales rose 49% in the first quarter of 2026, with about 1 billion euros in booked orders. Q4 2025 results showed Optical Networks growing 17% in constant currency with a book-to-bill above one, and CEO Justin Hotard described the demand backdrop in terms unthinkable from a Nokia executive a decade ago: “The AI supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned to be a leader in this market.”
Moreover, management is guiding to comparable operating profit of EUR 2.0 billion to EUR 2.5 billion in 2026, with a longer-term EUR 2.7 billion to EUR 3.2 billion target for 2028. Hotard, who ran Intel’s data center and AI group before taking the Nokia job, is collapsing the company into two segments, Network Infrastructure and Mobile Infrastructure, the kind of structural simplification activists usually have to fight for.
The Cramer caveat
Cramer did not bang the table. “If you’re willing to do the homework and stay on top of this one, you’ve got my blessing to put a small position in Nokia,” he said, before adding: “You might want to wait for a pullback before you pull the trigger on anything more than just a little bit because we’re beginning to get overbought.”
The stock trades at a P/E of 100x, and the analyst consensus price target sits behind the market price. Mobile Networks is still cyclical, carrier capex is still lumpy, and the AI-RAN commercial ramp does not arrive in volume until late 2027. The Reddit enthusiasm and the NVIDIA logo do not change those mechanics. They mean Nokia finally has a second act worth arguing about.
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Had You Invested $1,000 in Nokia 5 Years Ago, Here’s What You’d Have Now
Thu, 28 May 2026 13:05:29 +0000
... Had You Invested $1,000 in Nokia 5 Years Ago, Here’s What You’d Have Now]]>
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From Dead Money to AI Darling
For most of the past decade, Nokia (NYSE: NOK) was the patience trade nobody wanted. The Finnish telecom equipment maker spent years restructuring under former CEO Pekka Lundmark, cutting costs, and watching Ericsson, Huawei, and Samsung carve up the 5G market while shareholders received a thin dividend and not much else.
The pivot started in 2024 with the announcement of the acquisition of Infinera, a U.S. optical networking player that gave Nokia real exposure to data center connectivity. The deal closed in February 2025, and weeks later Justin Hotard, a former Intel data center executive, took over as CEO and repositioned the company around an “AI connectivity supercycle.” The real catalyst came in Q4 2025, when Nvidia made a $1.0 billion equity investment alongside an AI-RAN partnership. The stock reached three-year highs, and the narrative shifted.
Your $1,000, Three Different Stories
Here is what $1,000 invested in Nokia would be worth as of May 27, 2026:
Time Period
Total Return
Value Today
S&P 500 Return
5-Year
242.54%
$3,425
78.66%
1-Year
197.18%
$2,972
26.95%
YTD 2026
144.66%
$2,447
10.05%
Nokia crushed the S&P 500 across every window, but the win is heavily back-loaded. Almost all the five-year gain came in the past 12 months as the AI thesis took hold. Investors who held through years of flat trading were rewarded, while latecomers chasing the 46.3% one-month surge are paying significantly higher prices.
The Bull And Bear Case From Here
The bull case for Nokia rests on the AI-RAN partnership with Nvidia converting into hyperscaler design wins, Optical Networks continuing to compound (up 17% in constant currency in Q4 2025), and management hitting its 2028 target of €2.7 billion to €3.2 billion comparable operating profit. Ultimately, the bull case hinges on a re-rating from a telecom multiple to an AI infrastructure multiple.
The bear case centers on a trailing P/E near 98 and an analyst consensus price target of $12.90, which is well below the current price. Currency headwinds, declining Greater China revenue, and Infinera integration risk are all ongoing concerns, and the 52-week low of $4.00 serves as a reminder of how quickly sentiment can shift.
The investment thesis is compelling, even if the current entry point looks stretched. Watch the July 24, 2026, Q2 earnings report as the next key test of this valuation.
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Forget Cisco: Nokia Is the AI Networking Stock Nobody’s Watching
Wed, 27 May 2026 14:35:14 +0000
... Forget Cisco: Nokia Is the AI Networking Stock Nobody’s Watching]]>
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Cisco Systems (NASDAQ: CSCO) is the AI networking name dominating every screen this month, with shares up 54.9% year to date on the back of a raised $9.0 billion FY26 AI infrastructure order target.
But here is what investors should actually be watching.
The Cisco Trade Is Crowded and Fully Priced
Cisco opened Wednesday at $117.94, against a Wall Street consensus target of $125.41. The stock trades at 25x forward earnings, 7.8x sales, and 10.1x book. That is what a consensus darling looks like after an 87.1% one-year run.
The fundamentals are good. Q3 FY26 revenue of $15.84 billion beat estimates, networking grew 25% year over year, and AI infrastructure orders year to date reached $5.3 billion. The problem for new money: operating cash flow fell 7.39% year over year, services revenue declined again, and management telegraphed up to $1 billion in restructuring charges across Q4 FY26 and FY27. Even retail has noticed the setup. A Reddit thread asking “Is history repeating itself? Cisco Systems (CSCO) YTD in 2000 (Just Before the Dotcom Bubble Burst) vs. Today 2026” drew 105 upvotes and 156 comments. When WallStreetBets is partying like it’s 1999 on a name, the easy money is behind you.
The Better AI Networking Trade: Nokia
Nokia (NYSE: NOK) is the picks-and-shovels AI networking play that institutions still treat as a legacy telecom equipment company. Three reasons that view is wrong.
1. Optical Networks is the real AI bottleneck breaker. Q4 ’25 Optical Networks revenue hit $1.14 billion, up 17% in constant currency, with book-to-bill well above 1. The Infinera acquisition closed in February 2025, bolting on optical transport scale, and Nokia is now shipping 800G ZR/ZR+ pluggables to a large U.S. hyperscaler, with a second Indium Phosphide fab opening in San Jose before the end of 2026. AI cluster networking is the chokepoint. Nokia owns hard assets in it.
2. Nvidia put real money on the table. Jensen Huang made a $1.0 billion equity investment in Nokia alongside a strategic AI-RAN partnership, with Nokia named preferred networking vendor for the Nscale data center buildout. The market has not absorbed what it means for Nvidia to anchor a competitor to Cisco rather than Cisco itself.
3. Restructured, cash-generative, and re-rating. Under new CEO Justin Hotard, Nokia simplified to a two-segment structure effective January 2026 and guided 2026 comparable operating profit to €2.0 billion to €2.5 billion, rising to €2.7 billion to €3.2 billion by 2028. Q4 ’25 comparable gross margin widened to 48.1%, enterprise sales jumped 22% in constant currency, and the dividend was raised. As Hotard put it, “The AI supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned to be a leader in this market transition.”
The Honest Risk
Nokia has already moved. Shares are up 144.6% year to date to $15.94, above the $12.90 analyst consensus target, and the trailing P/E of 98 looks expensive on backward earnings. Q2 earnings on July 23, 2026, are the next real test. The forward multiple of 40x is the number that matters, and it captures the operating leverage of a multi-year AI networking ramp.
The Action
For a retirement-focused investor tired of crowding into the consensus AI trade at a $472 billion market cap, the asymmetry sits with Nokia. Research Nokia on the next pullback, and let the Cisco crowd argue with itself about 1999.
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Argus Upgrades Nokia to Buy: Can AI Network Demand Wake Up the Sleeping Giant?
Mon, 27 Apr 2026 15:34:12 +0000
... Argus Upgrades Nokia to Buy: Can AI Network Demand Wake Up the Sleeping Giant?]]>
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Analysts at Argus see a compelling opportunity in Nokia (NYSE:NOK), upgrading the Finnish networking giant’s shares to Buy from Hold with a $15 price target. The call followed Nokia’s Q1 report and points to accelerating AI-driven demand in the Network Infrastructure business.
The thesis frames Nokia stock as a potential AI infrastructure dark horse, with optical and IP networking gear positioned to ride exploding east-west data center traffic. For long-term investors, the analyst upgrade warrants a closer look, even as legacy headwinds and well-funded rivals remain real risks.
Ticker
Company
Firm
Action
Old Rating
New Rating
Old Target
New Target
NOK
Nokia
Argus
Upgrade
Hold
Buy
N/A
$15
The Analyst’s Case
Kelleher’s upgrade hinges on AI-related demand showing up in Nokia’s order book. The company raised its 2026 revenue growth guidance for the Network Infrastructure business, the segment most directly tied to optical interconnect, IP routing, and data center switching where hyperscaler dollars flow fastest.
Argus also notes that Nokia’s Mobile Networks environment has been stable but could begin to grow as carriers expand capacity to support AI data center traffic. That stabilization, after years of decline in the 5G capex cycle, could turn Nokia stock from a value trap into a credible growth-and-income story.
Company Snapshot
Nokia carries a market cap near $62.3 billion, with trailing twelve-month revenue of roughly $20 billion across Network Infrastructure, Mobile Infrastructure, and Nokia Technologies. CEO Justin Hotard has reorganized the portfolio and absorbed Infinera to sharpen the optical story.
Nokia stock trades at a forward P/E ratio of 29x, with NOK shares closing recently at $11.08. The dividend yields roughly 1%, modest but trending up again.
Why the Move Matters Now
AI data centers are reshaping networking economics, and east-west traffic between GPU clusters plays directly into Nokia’s strengths against Cisco Systems (NASDAQ:CSCO) and Arista Networks (NYSE:ANET). Cisco’s networking revenue grew 21% last quarter and Arista posted 29% revenue growth in Q4 FY25, showing the strength of the AI tailwind.
Nokia stock is up 67% year-to-date and 118% over the past year. That performance signals the market is pricing in a turnaround that Argus believes still has room to run.
The Bear Case
Legacy carrier spending remains lumpy, and competition from Ericsson (NASDAQ:ERIC) and others is intense. Ericsson stock is up only 15% year-to-date, a reminder that telecom equipment names don’t always rerate together.
Integration risk from the Infinera deal and Nokia Shanghai-Bell consolidation, plus FX and tariff exposure, could pressure margins. For a deeper look at how the AI buildout is driving capital cycles, see our recent AI networking outlook.
What It Means for Your Portfolio
The Argus Buy rating gives retirement-focused investors an institutional voice behind the Nokia turnaround thesis. The recently raised dividend, plus optionality on AI networking exposure, makes Nokia stock a reasonable satellite position for income-oriented portfolios.
Watch for whether Q2 2026 results on July 23 confirm the Network Infrastructure acceleration and whether Mobile Networks orders begin to inflect. Sizing the position modestly leaves room to add if execution holds, while limiting damage if competition or integration stumbles.
Investors hunting a pure-play AI networking name may prefer Arista’s premium growth, while those seeking value with a turnaround kicker may find Nokia’s setup more attractive. The Argus price target adds a credible voice to the Nokia bull case.
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Here Are Monday’s Top Wall Street Analyst Research Calls: Adobe, Advanced Micro Devices, CrowdStrike, DoorDash, Fortinet, GE Vernova, Snap, StubHub, and More
Mon, 27 Apr 2026 11:45:21 +0000
... Here Are Monday’s Top Wall Street Analyst Research Calls: Adobe, Advanced Micro Devices, CrowdStrike, DoorDash, Fortinet, GE Vernova, Snap, StubHub, and More]]>
The post Here Are Monday’s Top Wall Street Analyst Research Calls: Adobe, Advanced Micro Devices, CrowdStrike, DoorDash, Fortinet, GE Vernova, Snap, StubHub, and More appeared first on 24/7 Wall St..
Pre-Market Stock Futures:
The futures are trading lower as we get set to start a new trading week, and after last week’s string of record highs, it may be tough to duplicate the stellar performance that Wall Street put on. All of the major indices closed higher, except the Dow Jones Industrials, which finished the day down 0.16% at 49,230. The Nasdaq continued its hot streak, closing Friday at 24,836, up 1.63% for its fourth straight week of gains, and hitting yet another new all-time high. The S&P 500 did the same, closing at 7,165, up 0.80%, and also hitting another new all-time high. The small-cap Russell 2000, which is still the top-performing index in 2026, up over 11% on the year, closed Friday at 2,787, up 0.43%.
Treasury Bonds:
Yields were down across the Treasury curve on Friday as buyers finally returned to U.S. sovereign debt. Everything from the case against Chairman Powell and the Fed being dropped, to the new Fed Chairman Kevin Warsh’s push for new inflation guidelines, to another meeting in Pakistan between our government and Iran for peace talks, was cited as a reason for the buying. When the smoke cleared on Friday, the 30-year-long bond closed at a 4.92% yield, while the benchmark 10-year note closed at 4.31%.
Oil and Gas:
Prices were mixed across the energy complex on Friday, as news that peace negotiators were heading to Pakistan for renewed talks boosted hopes for a settlement to the war with Iran, only to be tamped down over the weekend. West Texas Intermediate finished the day down 1.54% at $94.37, while Brent Crude closed higher at $105.40, up 0.29%. Both of these moves came after JPMorgan said oil prices still had room to rise. Natural gas closed down 3.86% at $2.51.
Gold:
The precious metals finished up a wild rollercoaster week after published data indicated that central governments around the globe are still buying gold at a breathtaking pace. Gold closed Friday trading at $4,707, up 0.34%, while Silver was last seen at $75.74, up 0.57%.
Crypto:
The cryptocurrency markets saw a slight pullback on Friday, with the total market cap dipping 1.35% to $2.57 trillion. Bitcoin held near 11-week highs around $78,000 to $78,300, stalling after a recent rally. The market faces pressure from rising oil prices above $100 and the usual thin weekend liquidity, as cryptocurrencies trade 24/7/365, with Ethereum dipping and traders staying cautious. At 8 AM EDT, Bitcoin was trading at $77,840, while Ethereum was quoted at $2, 321.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Monday April, 27, 2026.
Upgrades:
CrowdStrike Holdings (NASDAQ: CRWD) was upgraded to Outperform from Neutral at Mizuho, which raised the target price for the cybersecurity giant to $520 from $490.
Fortinet (NASDAQ: FTNT) was upgraded to Buy from Neutral at Arete, with a $104 target price.
Nokia (NYSE: NOK) was upgraded to Buy from Hold at Argus, which has a $15 target price for the company.
Rollins (NYSE: ROL) was upgraded to Buy from Neutral at Rotchschild & Co. Redburn, which raised the target price for the stock to $66 from $51.90.
Snap (NYSE: SNAP) was raised to Buy from Neutral at Rothschild & Co Redburn, which doubled the target price for the stock to $10 from $5.
Downgrades:
Adobe (NASDAQ: ADBE) was downgraded to Neutral from Outperform at Mizuho, with a $270 target price.
Advanced Micro Devices (NASDAQ: AMD) was downgraded to Market Perform from Outperform at Northland, which has a $260 target price for the legacy chip leader.
Digital Realty Trust (NYSE: DLR) was downgraded to Hold from Buy at HSBC, which actually bumped the price target for the datacenter giant to $210 from $193.
GE Vernova (NYSE: GEV) was downgraded to Neutral from Outperform at BNP Paribas, with an $1,190 target price.
Pinterest (NYSE: PINS) was cut to Neutral from Buy at Rothschild & Co Redburn, which nudged the target price for the shares to $23 from $17.
Initiations:
BioMarin Pharmaceutical (NASDAQ: BMRN) was resumed in coverage at Morgan Stanley, which raised the target price for the stock to $120 from $98.
Cohu (NASDAQ: COHU) was initiated with a Buy rating at Jefferies, which has a $55 target price for the shares.
DoorDash (NASDAQ: DASH) was initiated with a Buy rating at TD Cowen, with a $225 target price.
Riot Platforms (NASDAQ: RIOT) was initiated with a Buy rating at Chardan, with a $27.50 target price.
StubHub Holdings (NYSE: STUB) was started with an Equal Weight rating at Morgan Stanley with an $8.25 target price.
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Nvidia commits billions to Lumentum, Synopsys, Nokia, XAI, OpenAI, Intel in March alone
Wed, 01 Apr 2026 11:40:32 +0000
... Nvidia commits billions to Lumentum, Synopsys, Nokia, XAI, OpenAI, Intel in March alone]]>
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CNBC just said something that caught my eye: “This month alone, Nvidia has committed $2 billion each to Lumentum, Coherent, before that $2 billion into Synopsys, a billion into Nokia, stakes in XAI, OpenAI and Intel.”
That is an extraordinary amount of capital deployed in a single month, and it tells you exactly what Jensen Huang is building. Not a chip company, but the operating system for the entire AI economy.
The Marvell Partnership Is the Headline
The centerpiece of the CNBC segment was Marvell Technology (NASDAQ:MRVL). Marvell designs custom AI chips for hyperscalers like Amazon — chips that can compete directly with Nvidia’s own GPUs. The new partnership flips that tension into an opportunity. As Huang put it: “Together, we’ll be able to address the customers, whether they would like to use all Nvidia gear or they would like to augment their Nvidia gear with their specialized processors. And together we’ll be able to address a much, much larger TAM.”
Marvell’s data center segment generated $1.52 billion in Q3 FY2026, up 38% year-over-year, and the company’s full-year FY2026 revenue growth is forecast to exceed 40%. Shares rose 22.5% in March alone.
Locking In the Optical Layer
Lumentum Holdings (NASDAQ:LITE) and Coherent (NYSE:COHR) each received $2 billion commitments. Both companies sit at the optical interconnect layer of AI infrastructure — the plumbing that moves data between GPUs at scale. Lumentum’s CEO recently noted the company had a backlog exceeding $400 million in optical circuit switches alone, with Q3 FY2026 revenue guidance implying over 85% year-over-year growth. Coherent’s data center segment hit $1.21 billion last quarter, up 34% year-over-year.
Synopsys, Nokia, and Intel Round Out the Spree
Synopsys (NASDAQ:SNPS) received a $2 billion commitment tied to an expanded strategic partnership to revolutionize engineering and design. Synopsys posted Q1 FY2026 revenue of $2.41 billion, up 65.4% year-over-year. Nokia (NYSE:NOK) landed a $1 billion equity investment tied to an AI-RAN partnership, with Nokia’s CEO describing AI as “a long-term structural shift that is expanding the role of networks.” And Intel (NASDAQ:INTC) saw a $5 billion sale of Intel common stock to Nvidia completed, strengthening Intel’s balance sheet as it ramps its Intel 18A process node.
Nvidia’s shares are up 60.95% over the past year even as the company deploys capital aggressively. With $96.58 billion in free cash flow generated in FY2026, Nvidia can afford to buy the ecosystem it needs. The message from March is clear: Nvidia intends to ensure the AI buildout runs through its infrastructure no matter whose chips end up on the racks.
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Nokia’s Rally May Be Over as Analysts Tell Investors to Take Profits
Fri, 27 Mar 2026 18:19:41 +0000
... Nokia’s Rally May Be Over as Analysts Tell Investors to Take Profits]]>
The post Nokia’s Rally May Be Over as Analysts Tell Investors to Take Profits appeared first on 24/7 Wall St..
Grupo Santander analyst Carlos Trevino has downgraded Nokia (NYSE:NOK) to Underperform from Outperform, setting a price target of EUR 6.85 and signaling that the telecom equipment rally has run its course. With Nokia shares up 21.04% year-to-date and 51.54% over the past year, Santander’s call reflects a view that the telecom equipment rally has run its course and current valuations leave limited upside.
Ticker
Firm
Old Rating
New Rating
New Price Target
One-Line Takeaway
NOK
Grupo Santander
Outperform
Underperform
EUR 6.85
Rally priced in; valuation stretched relative to fundamentals
The Analyst’s Case
Santander’s downgrade is a valuation call more than a fundamental one. Nokia’s stock has climbed sharply on AI-driven enthusiasm, particularly around AI-RAN partnerships and 6G positioning, but the market may have gotten ahead of the earnings story. The consensus analyst price target sits at $7.56, already below Nokia’s current trading price of $8.28. Danske Bank and DNB Carnegie have also moved to Hold with a EUR 6.50 price target, suggesting Santander is not alone in its skepticism. The trailing P/E of 64x looks demanding for a company whose trailing EPS stands at $0.13, even if the forward P/E of 23x reflects more realistic near-term earnings expectations.
What the Fundamentals Show
Nokia’s Q4 2025 results were solid. Net sales reached $6.07 billion, with EPS of $0.17, meeting consensus expectations. Mobile Infrastructure posted an operating margin of 20.5%, its highest quarterly figure in 2025, while Network Infrastructure grew net sales 7% in the quarter. Optical Networks was a standout, growing 17% with orders from AI and cloud customers reaching EUR 2.4 billion for the full year. Management guided 2026 operating profit to EUR 2 billion to EUR 2.5 billion. The fundamentals remain intact, though they may already be reflected in the share price.
Why the Move Matters Now
Nokia’s six-month price gain of 77.91% has been fueled largely by AI infrastructure optimism, MWC announcements, and the Infinera acquisition narrative. The stock is trading well above the 200-day moving average of $5.86 and near its 52-week high of $8.82. Meanwhile, Mobile Infrastructure full-year 2025 net sales declined versus 2024, the Portfolio Businesses segment posted an operating loss of EUR 97 million, and Nokia faces North American headwinds tied to customer losses. Management has also flagged that Q1 2026 will see a sequential decline somewhat more than normal seasonality would imply, adding near-term pressure to the earnings trajectory.
What It Means for Your Portfolio
For investors who have held Nokia through its rally, Santander’s downgrade is a timely reminder that price appreciation creates its own risk. The AI and 6G thesis remains intact over the long term, and management’s restructuring into Network Infrastructure and Mobile Infrastructure segments reflects genuine strategic clarity. But at current valuations, with the analyst community’s average target sitting below the market price and sector headwinds in mobile persisting, the risk-reward has shifted. Santander’s downgrade reflects a view that the risk-reward has shifted unfavorably at current valuations.
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Nokia Runs 50%, Pays a Dividend, and Investors Still Love The Stock
Tue, 18 Nov 2025 19:51:35 +0000
... Nokia Runs 50%, Pays a Dividend, and Investors Still Love The Stock]]>
The post Nokia Runs 50%, Pays a Dividend, and Investors Still Love The Stock appeared first on 24/7 Wall St..
Nokia (NYSE: NOK) stock has surged 50% in the last year, and investors still love it.
Shares jumped to a new all time high on October 28th on the news the Finnish telecom equipment maker secured a $1 billion equity investment from AI kingmaker Nvidia (NASDAQ:NVDA). This news sparked discussions across r/stocks and r/options about Nokia’s positioning in the AI led buildout of 6G communication technology.
While shares have given back a lot of those gains, sentiment remains high at 83/100 today, among the highest with large cap tech stocks.
Nvidia’s $1B Vote of Confidence
The big watershed was the news that Nvidia will purchase over 166 million new Nokia shares while the companies collaborate on adapting Nokia’s 5G and 6G software to run on Nvidia’s chips. Reddit user u/Puginator captured the mood in r/stocks, noting “Nokia shares soared 20% higher following the news” and quickly captured 367 upvotes and active conversation.
Nvidia takes $1 billion stake in Nokia
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u/Puginator in
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Retail traders see multiple reasons for optimism today:
The Nvidia partnership positions Nokia at the center of AI infrastructure networking
Analysts maintain multiple buy ratings with positive outlooks
The company continues to pay dividends while pursuing growth opportunities
Dividend Appeal Meets Growth Potential
One thing worth noting is Nokia’s dividend yield stands out in the technology sector, where many growth stocks pay nothing. The company maintains its dividend distribution program. On r/options, traders are eyeing long-dated call options, with u/Molive81 noting “their Leaps for Jan 2027 and 2028 look relatively cheaper” compared to revenue-light tech names.
Nokia options leaps really cheap
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u/Molive81 in
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Social sentiment remains deep in positive territory, and the Nvidia deal provides a tangible catalyst for the 6G thesis that could mean years of growth. Beyond that, you also get an above market dividend yield. It’s easy to see why social sentiment scores are so high for Nokia.
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Sentiment in Nokia (NOK) Continues To Rise After Nvidia’s (NVDA) $1B Announcement