EFN assesses that the market may have overextended itself regarding AI-related stocks, including the telecommunications equipment provider Nokia.
The share price has nearly tripled over the past year, driven by the acquisition of Infinera, a partnership with Nvidia, and surging AI-related demand. Meanwhile, revenues grew by only 3 percent during 2025. EFN notes that while customers within cloud services and AI showed strong growth, sales within fixed networks declined.
According to the publication, the valuation appears high, and further margin expansion could prove difficult if revenue growth fails to gain momentum.
Nokia Oyj specializes in the design, production and marketing of telecommunications equipment. Net sales break down by activity as follows:
- development of network infrastructure solutions (40.1%): IP routers and optical networking solutions;
- development of mobile broadband network solutions (39.2%): aimed in particular at telecommunications operators. In addition, the group offers professional services (network planning and optimization, systems integration, installation, implementation and maintenance of telecom networks);
- software development (13.1%): software for customer experience management, network operations and management, communication, collaboration and billing, IoT solutions and cloud management platforms;
- development of advanced technology (7.6%).
Net sales are distributed geographically as follows: Europe (31%), North America (31.2%), India (7.7%), China (4.6%), Asia/Pacific (11%), Middle East and Africa (10.6%), and Latin America (3.9%).
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