How New 5G and Network API Wins At Nokia (HLSE:NOKIA) Has Changed Its Investment Story

• In recent weeks Nokia has announced a string of major agreements, including a 5-year Telefonica Germany RAN modernization extension, a Gulf of Mexico 5G private wireless rollout with Tampnet, a 5G Advanced autonomous network slicing deployment with du, and Bharti Airtel’s adoption of its Network as Code platform to expose network APIs to developers.
• Taken together, these deals underline how Nokia is turning its 5G, AI, and network API innovations into real-world deployments across telecom and industrial markets.
• We’ll now explore how Nokia’s expansion of its Network as Code platform with Airtel could influence the company’s broader investment narrative.

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Nokia Oyj Investment Narrative Recap

To own Nokia today, I think you need to believe it can gradually improve earnings by turning its 5G, cloud and software assets into higher margin, recurring businesses, while stabilizing its more cyclical mobile networks. The latest run of deals reinforces that story but does not, on its own, remove the near term risk that tough competition and a sluggish Mobile Networks segment still pose to margins and earnings volatility.

The Airtel collaboration around Nokia’s Network as Code platform looks especially relevant, because it puts Nokia at the center of exposing 5G and AI-powered network capabilities to developers, a key ingredient for scaling higher value Cloud and Network Services. If this API driven model gains traction, it could help offset slower growth in traditional carrier capex and support the push toward more software and services driven revenue.

Yet, in contrast to the promise of new API revenues, investors still need to weigh how persistent pressure in Mobile Networks could...

Read the full narrative on Nokia Oyj (it's free!)

Nokia Oyj's narrative projects €21.0 billion revenue and €1.7 billion earnings by 2028. This requires 3.0% yearly revenue growth and about a €0.8 billion earnings increase from €909.0 million today.

Uncover how Nokia Oyj's forecasts yield a €5.43 fair value, in line with its current price.

Exploring Other Perspectives

Six Simply Wall St Community valuations span roughly €1.96 to €5.75 per share, showing how differently individual investors view Nokia’s potential. As you weigh those views against Nokia’s push into higher margin software and private wireless, consider how much execution risk in Mobile Networks you are prepared to accept.

Explore 6 other fair value estimates on Nokia Oyj - why the stock might be worth less than half the current price!

Build Your Own Nokia Oyj Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nokia Oyj research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Nokia Oyj research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nokia Oyj's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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