Nokia Oyj (HLSE:NOKIA) is back in focus after a series of technology deployments and partnerships, including an AI-focused R&D center in Riyadh and new agreements in broadband and digital healthcare.
Nokia Oyj’s recent AI, broadband and healthcare announcements come after a sharp share price move, with the stock at €8.656 and a year-to-date share price return of 56.70% alongside a 1-year total shareholder return of 127.61%. While the 90-day share price return declined 32.74% and the 7-day share price return slipped 4.46%, the 30-day share price return of 6.13% indicates that momentum has started to pick up again as investors react to these developments.
Compare Nokia Oyj’s momentum and these AI driven network moves with a hand picked set of 55 AI infrastructure stocks to see which companies are turning similar themes into potential market traction.
After a 1 year total return of 127.61% and a sharp pullback over 90 days, Nokia Oyj sits at a point where views split. Is most of the easy upside already behind the stock, or is there still meaningful value on the table?
Most Popular Narrative: 42.9% Undervalued
Nokia Oyj’s most followed narrative points to a fair value of €15.16 per share compared with the recent close at €8.656, which is a large gap that many investors will want to understand before taking a view.
Nokia delivered a strong second quarter, reporting revenue of €4.815 billion and earnings per share of €0.07, supported by growing demand for AI and cloud-related solutions. The company is also expanding its presence in the defense sector through AI-powered tools for 5G networks, creating additional opportunities to diversify revenue and strengthen long-term growth prospects.
Want to see what justifies that higher fair value for Nokia Oyj? The narrative leans heavily on future earnings growth, margin improvement and a richer profit multiple. Curious which assumptions really move the needle in this model and how much AI and defense are baked in?
Result: Fair Value of €15.16 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Nokia Oyj still faces risks if AI and defense demand softens or if telecom customers curb spending, which could pressure revenue and the current valuation narrative.
Find out about the key risks to this Nokia Oyj narrative.
Another View: Nokia Oyj Through The P/E Lens
The SWS DCF model suggests Nokia Oyj is worth €12.99 per share, which points to upside from the current €8.66. The picture looks very different when using P/E. Nokia trades at 69x earnings, compared with a fair ratio of 50.5x, the European Communications industry at 18.8x, and peers at 31.1x. That is a rich starting point for anyone banking on the DCF outcome. How comfortable are you with paying this kind of premium for the growth story?
For a clearer sense of how this P/E gap could shape future risk or opportunity, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
If this mix of optimism and caution around Nokia Oyj feels familiar, use it as a prompt to review the numbers yourself and decide where you stand. To see how the current debate translates into concrete positives and negatives for the stock, start with these 2 key rewards and 3 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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