Nokia Shares Offer Limited Further Upside -- Market Talk

1103 GMT - Nokia shares are up around 65% year-to-date on artificial intelligence-driven optimism, and while AI demand should continue to support growth, much of the upside is priced in, UBS analyst Francois-Xavier Bouvignies writes. Second-quarter AI and cloud revenue more than doubled on year, while order intake reached 2.8 billion euros, which is equivalent to the prior three quarters combined. UBS expects the strong demand to persist, supporting optical network and IP network revenue growth of around 20% in 2027 versus high-teens growth in 2026. "However, margin expansion is likely to be constrained by the investments required to support scaling." UBS lowers its price target on the stock to 9.65 euros from 11 euros and reiterates its neutral rating. Shares fall 1.5% to 8.57 euros. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 07:03 ET (11:03 GMT)