AI Meets the Airwaves: This Telecom Comeback Story Has Serious 6G Swagger

30‑Second Take

If you’ve been sleeping on Nokia, now is the moment to wake up.

The stock just jumped 17% after a headline-grabbing $1 billion partnership with NVIDIA to power AI-native mobile networks.

This is a move that doesn’t just modernise its 5G game, but plants it firmly in the 6G race. With earnings topping expectations and the market finally rewarding execution, this feels like a rare inflection point where legacy tech meets genuine next-gen upside.

If you’re ready to bet early on this AI + telecoms crossover, you could find yourself holding one of 2025’s most impressive comeback stories.

Trade Setup

Timeframe: Long term (12–24 months)

Edge Type: Strategic Growth + AI/6G Innovation

This is a long-game play. You’re not chasing a quick pop here; you’re backing Nokia’s transformation as it shifts from a legacy telecom brand to a core enabler of next-gen AI-driven networks. 

The $1B NVIDIA investment deal gives it both tech muscle and market credibility to compete in the 6G buildout. At the same time, a leaner balance sheet and solid earnings momentum add staying power. 

The setup here is about conviction: ride the longer-term evolution of mobile infrastructure, not just the latest bounce.

Snapshot Table

Chart

1-month trading summary: Nokia’s stock has rocketed 68.24% in the last month, turning heads across the market.

Fueling this surge has been the $1 billion equity investment from NVIDIA, a landmark partnership designed to supercharge Nokia’s AI-native and 6G ambitions.

Add in an earnings beat that outpaced expectations and a noticeable uptick in institutional buying, and you’ve got the makings of a full-blown sentiment shift.

This isn’t just a relief rally; it’s a re-rating in motion as investors start to price in Nokia’s comeback as a serious player in the next generation of connectivity.

Bull Case 

An AI-powered turning point: The Nokia–NVIDIA alliance is a genuine turning point, not just a flashy headline.

With NVIDIA’s AI hardware and software firepower integrated into Nokia’s mobile network infrastructure, the company is effectively leaping a generation ahead in telecom innovation.

This positions Nokia as a cornerstone of the 6G ecosystem, where AI-driven automation, ultra-low latency, and massive device connectivity will define the next decade. 

Financially, the story is finally lining up with the tech narrative: margins are improving, earnings are beating forecasts, and cash flow looks healthier than it has in years. 

If you consider yourself a long-term investor, the bet is simple.

Nokia's reinvention as an AI-native network powerhouse is still early in the re-rating cycle, and the market's only just waking up to it.

A deepening AI partnership: The big one, of course, is Nokia’s deepening partnership with NVIDIA.

This is a $1 billion spark that’s already lit a fire under the stock. But this story has legs well beyond the headline. 

Over the coming quarters, expect updates on AI-native network deployments, fresh 6G R&D milestones, and early wins in enterprise and operator contracts that showcase the tech in action. 

Nokia’s strong Q3 earnings print was the first proof point; the next few could cement the turnaround narrative.

Meanwhile, any confirmation of new government or defense contracts tied to 6G infrastructure could send another wave of enthusiasm through the market. In short, Nokia's entering a news-heavy stretch where each update could extend the rally.

Price targets: Wall Street has been caught on the hop by the Nvidia deal. The current low target is $3.80, with a high of $7.50.  

Shaking off underperformance: After a 68% sprint in just a month, Nokia’s chart looks like it’s finally shaking off years of underperformance.

The RSI sits near 74, signaling short-term overbought conditions, but, in context, that's the kind of ‘strong hands buying’ you want to see in the early innings of a trend reversal.

Momentum indicators remain firmly bullish, with stock trading above the 50-day, 100-day, and 200-day moving averages.

Bear Case 

Excitement before execution: The most significant risk is that excitement outruns execution.

Partnerships like Nokia's with NVIDIA can sound transformational, but integration takes time, and investors don’t always stay patient. 

If early AI-network rollouts face delays or costs overshoot, the market could quickly cool on the story. 

There's also competitive pressure from the usual telecom heavyweights, such as Ericsson and Huawei, both of which are pursuing similar AI and 6G opportunities. 

Add in macro uncertainty —from supply chain strain to capex pullbacks among major carriers —and the path higher could get choppy. 

In short, it’s a promising long-term setup, but not without volatility along the way.

Rivals aplenty: Nokia’s got momentum, but it’s running in a race packed with giants. Ericsson remains its closest rival in the telecom gear space, and it’s already leaning hard into its own AI-infused network solutions.

Huawei, despite ongoing trade restrictions, still dominates several 5G and early 6G markets, especially across Asia and parts of Africa.

Even Samsung Networks and Cisco are circling the same AI-connectivity opportunity from different angles. 

The risk? If one of these players rolls out a faster or cheaper AI-native solution, or secures key regional contracts first, Nokia’s early lead could start to narrow.

For now, though, the NVIDIA partnership gives it a differentiator that’s hard to ignore.

Telecom tailwinds: Telecom spending isn’t exactly booming right now.

With global carriers tightening budgets and governments cautious about large-scale 6G infrastructure commitments, rollout timelines could stretch longer than investors would like. 

Add higher borrowing costs and lingering semiconductor and network component supply chain pressures, and it's easy to see how the pace of progress could slow.

The long-term story stays intact, but macro drag means patience will be key for anyone holding through the cycle.

Crowded with AI giants: AI is the market’s favourite buzzword right now, and that cuts both ways.

As Nokia’s name starts getting lumped into “AI stock” baskets alongside chipmakers and cloud giants, momentum traders could flood in (and out) just as quickly.

That kind of hot money can exaggerate short-term swings and detach the stock from fundamentals.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (October 28, 2025)

Deep‑Dive Links

• Q3 2025 Earnings 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha