Nokia Partners with KNDS to Enhance Battlefield Communication Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 18 2026
0mins
Source: seekingalpha
Nokia's stock fell 5.06% as it crossed below the 5-day SMA amid a broader market decline, with the Nasdaq-100 down 2.78% and the S&P 500 down 1.15%.
The decline occurred despite Nokia's recent partnership with KNDS to enhance battlefield communication technology, integrating its Banshee 5G network into armored vehicles. This collaboration aims to improve communication between troops and unmanned systems, showcasing Nokia's commitment to defense technology and operational efficiency.
The market's negative reaction to Nokia's stock may reflect broader investor concerns about the tech sector's performance, particularly as the company navigates its strategic initiatives in a challenging market environment.
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Analyst Views on NOK
Wall Street analysts forecast NOK stock price to fall
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 12.510
Low
6.50
Averages
7.36
High
8.50
Current: 12.510
Low
6.50
Averages
7.36
High
8.50
About NOK
Nokia Oyj is a Finland-based company engaged in the network and Internet protocol (IP) infrastructure, software, and related services market. The Company's businesses include Nokia Networks and Nokia Technologies. The Company's segments include Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies. The Ultra Broadband Networks segment comprises Mobile Networks and Fixed Networks operating segments. The IP Networks and Applications segment comprises IP/Optical Networks and Applications & Analytics operating segments. The Applications & Analytics operating segment offers software solutions spanning customer experience management, network operations and management, communications and collaboration, policy and charging, as well as Cloud, Internet of things (IoT), security, and analytics platforms that enable digital services providers and enterprises to accelerate and optimize their customer experience. The Company has Comptel Oyj among its subsidiaries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Lumentum Growth: Lumentum's total revenue nearly doubled to $808.4 million, with components and systems segments growing 77% and 121% respectively, but it faces intense competition from Coherent, reflected in its high forward price-to-earnings ratio of 50.
- Nokia Partnership: Nvidia's partnership with Nokia aims to accelerate the development of AI networking infrastructure, with a $1 billion investment giving Nvidia a 2.9% stake, while Nokia's cloud and AI revenue surged 49% in Q1 2026, indicating strong market potential.
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- Strategic Partnership Highlight: Nokia has formed a $1 billion strategic partnership with Nvidia, with Nvidia investing at $6.01 per share to become a 2.9% shareholder, aiming to accelerate the development of AI-RAN, indicating a growing recognition of Nokia's potential in the AI sector.
- Optical Networking Outlook: Nokia is set to launch a second indium phosphide semiconductor fabrication facility in San Jose, California, which is crucial for high-speed optical transceivers that meet the data transfer demands of AI data centers, showcasing its vertical integration advantage in a supply-constrained market.
- Earnings Report Significance: Scheduled for July 23, 2026, Nokia's Q2 earnings report will provide the first insights into actual order flows from the Nvidia partnership and the ramp-up of the San Jose facility; if it delivers on optical growth and guidance related to AI-RAN commercialization, the stock could reprice quickly.
- Market Risks and Opportunities: While Nokia faces execution risks and concerns over 6G timelines, Nvidia's substantial investment and a robust product pipeline position it as a key player in infrastructure development, suggesting that dismissing Nokia as a relic may be a significant oversight.
See More
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- Strategic Partnership Highlight: Nokia's strategic partnership with Nvidia, announced in May 2026, involves a $1 billion investment at $6.01 per share, making Nvidia a 2.9% shareholder, aiming to accelerate the development of AI-RAN, which could transform Nokia from a legacy telecom company into an AI infrastructure stock.
- Optical Networking Growth: Nokia is set to bring online a second indium phosphide semiconductor fabrication facility in San Jose, California, which powers high-speed optical transceivers essential for AI data centers, enhancing Nokia's vertical integration advantage in a supply-constrained market.
- Earnings Report Expectations: Scheduled for July 23, 2026, Nokia's Q2 earnings report will provide investors with the first insights into actual order volumes stemming from the Nvidia partnership and the ramp-up of the San Jose facility, potentially leading to a revaluation of Nokia's stock.
- Execution Risks and Market Outlook: While Nokia faces execution risks from its 2024 acquisition of Infinera and potential delays in 6G timelines, Nvidia's substantial investment and a robust product pipeline position Nokia favorably in the AI infrastructure build-out, highlighting significant future growth potential.
See More
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