Is NOK a good stock to buy? We came across a bullish thesis on Nokia Oyj on Arya’s Substack by Arya. In this article, we will summarize the bulls’ thesis on NOK. Nokia Oyj’s share was trading at $10.60 as of April 20th. NOK’s trailing and forward P/E were 81.87 and 29.07 respectively according to Yahoo Finance.
Nokia Oyj, together with its subsidiaries, provides mobile, fixed, and cloud network solutions in North and Latin America and internationally. NOK has recently re-emerged as a compelling investment case, transitioning from a legacy telecom equipment vendor into a broader digital infrastructure player aligned with AI, cloud, and next-generation connectivity trends. Historically viewed as a low-growth, value-oriented stock trading at a discount due to execution missteps and muted 5G impact, the company is now undergoing a strategic reset under new leadership.
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This transformation is centered on capturing opportunities from the AI-driven network supercycle, geopolitical tailwinds from Western restrictions on Chinese vendors, and internal cost optimization to drive margin expansion. Despite skepticism embedded in its valuation, Nokia’s evolving positioning as a trusted Western provider of end-to-end network infrastructure introduces meaningful upside optionality.
Operationally, Nokia spans mobile networks, network infrastructure, cloud and software services, and a high-margin patent licensing business, creating a diversified revenue mix with both cyclical and recurring elements. Financially, the company generates nearly €20 billion in revenue with solid free cash flow and a strong net cash position, though margins have been pressured by reduced licensing contributions and ongoing investments. However, improving mix, cost discipline, and scaling software revenues provide a pathway for margin recovery. At roughly 20× forward earnings and ~2× sales, Nokia remains reasonably valued relative to peers, particularly given its improving fundamentals and potential for multiple expansion.
Near-term catalysts include European 5G infrastructure replacement, stabilization in North America, cost execution, and new product cycles, while risks center on prolonged telecom capex weakness, competitive pressures, and execution challenges. Overall, Nokia represents a recovery story with asymmetric upside: if transformation efforts succeed, the company could shift from a discounted value play to a structurally improving compounder.
Previously, we covered a bullish thesis on Nokia Oyj (NOK) by Lux Opes Research in March 2025, which highlighted strong Network Infrastructure performance, licensing growth, and AI-driven cloud investments. NOK’s stock price has appreciated by approximately 105.42% since our coverage. Arya shares a similar view but emphasizes Nokia’s transformation into a digital infrastructure leader, leveraging AI, geopolitical tailwinds, and cost optimization to expand margins.
Nokia Oyj is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held NOK at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of NOK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOK and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
