Nokia (NOK) shares climbed to a new 52-week high of $10.48 today after Bank of America Securities issued a bullish note on the networking infrastructure giant. Analyst Oliver Wong believes NOK could push higher this year, even though its 14-day relative strength index (RSI) sits at nearly 80 already, signaling overbought conditions.
Nokia stock has been a solid investment in 2026, currently up about 65% versus its year-to-date low.
BofA sees Nokia’s recent Infinera acquisition as a turning point, positioning the firm as a leader in optical networking, a critical bottleneck in the global AI data center buildout.
In fact, the investment firm expects increased exposure to hyperscalers to drive a 17% compound annual growth rate (CAGR) in its optical networks business through 2028.
In his research note, Wong also highlighted Nokia’s potential to capture market share in the EU as the region tightens restrictions on the likes of Huawei and ZTE due to security concerns.
A healthy 1.56% dividend yield makes NOK shares even more attractive as a long-term holding in 2026, the analyst added.
Wong is bullish on Nokia’s recent $1 billion partnership with Nvidia (NVDA) on AI-RAN (Radio Access Network) technology as well.
According to Wong, the market is significantly underestimating what this collaboration could, over time, mean for NOK in terms of revenue growth.
Finally, Nokia shares are currently trading at a forward price-to-earnings (P/E) multiple of nearly 25x, which isn’t particularly expensive for a company riding the AI tailwinds.
At the time of writing, the NYSE-listed firm sits decisively above its key moving averages (MAs), signaling a strong uptrend that’s unlikely to subside anytime soon.
Investors should note, however, that other Wall Street analysts are not nearly as positive on Nokia as the Bank of America Securities.
According to Barchart, while the consensus rating on NOK stock remains at a “Moderate Buy,” the mean price target actually represents a meaningful downside potential from current levels, as shown in the image below.
