Why Nokia Stock Was Winning Big on Wednesday

Nokia shares surged Wednesday as legacy tech proves it still has legs in the 5G era—much to the surprise of crypto maximalists who thought physical infrastructure went out with flip phones.

The Finnish telecom giant's stock jumped on renewed contract momentum and solid quarterly positioning. While blockchain enthusiasts were busy arguing about Layer 2 solutions, Nokia quietly stacked enterprise deals like cordwood.

Sometimes the real innovation isn't another token—it's actual towers that transmit data. A concept apparently lost on finance bros who think 'wireless' means trading NFTs from a coffee shop.

A recent acquisition could be a game changer

Well before market open,'s Jakob Bluestone changed said recommendation, pushing it up a notch to outperform (buy, in other words) from his previous neutral. His price target on Nokia's Europe-listed stock is 4.30 euros ($5.01) per share.

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According to reports, Bluestone's new outlook on Nokia derives largely from its latest big-ticket acquisition. Last June it acquired U.S. tech and telecom equipment supplier Infinera in a $2.3 billion deal; this closed in February.

The analyst believes that absorbing Infinera positions Nokia to benefit from investments into artificial intelligence (AI) capabilities, which go hand in hand with the current wave of data center build-outs (as those facilities are modified and expanded to handle the increased resource requirements of AI).

Bluestone pointed out that at the moment, Nokia's revenue from hyperscaler projects comprises only 5% of its overall top line. Given the high demand from such clients, that percentage could go well higher.

Business metamorphosis

At the dawn of the cellphone era, Nokia reigned supreme, particularly as a producer of handsets. It did not adjust well in the subsequent Age of the Smartphone, and since then has refashioned itself into a provider of the networking technology and associated offerings that underpin the telecom industry.

With Infinera it certainly has a chance of capturing lightning in a bottle; given that, Bluestone's new, bullish take feels realistic.