NOK Stock Soars On AI Network Push, Touts 40% Lower Energy Costs — BofA Calls It An 'Optical Powerhouse'

• Nokia stated that its offering can be used by enterprises for a wide range of use cases, including low-latency, real-time applications such as AI, as well as mobility and Internet of Things services.
• The company stated that its solution can reduce clients' cost of ownership by up to 50%.
• Nokia also announced that it has undertaken active trials with Tier-1 service providers across the North American and Asian markets.

Nokia Corp. (NOK) shares soared nearly 9% in Monday’s opening trade after the company launched a new connectivity offering for enterprises, offering them a low-cost solution for use cases like artificial intelligence.

Nokia announced early access to a new connectivity solution developed in partnership with Ruckus Networks, combining the next-generation Wi-Fi 7 technology with a fiber-optic local area network (LAN).

Nokia Touts 40% Energy Cost Savings

Nokia stated that its new optical-wireless LAN solution can help enterprises reduce their energy costs by up to 40%, while trimming their cost of ownership by half.

The company also highlighted that, in combination with Ruckus Networks’ cloud and wireless products, the new solution can be used to meet a wide range of enterprise connectivity needs, including low-latency real-time applications such as AI, as well as mobility and Internet of Things (IoT) services.

Nokia stated that its Aurelis MF-2 optical switch and modems require significantly less space and power than traditional LAN solutions, making them ideal for in-campus connectivity requirements.

This solution is designed for telecom companies, cable operators, LAN, and managed service providers catering to a wide range of enterprises, the company added.

Nokia also announced that it has undertaken active trials with Tier-1 service providers across the North American and Asian markets.

BofA Turns Bullish On Nokia

Analysts at BofA turned bullish on Nokia, upgrading the company to ‘Buy’ from ‘Neutral’ on Monday, according to TheFly.

The firm stated that Nokia is transforming itself into an “optical powerhouse with a European advantage.” BofA also noted that, following Nokia’s leadership change in 2025 and its acquisition of Infinera, the company has multiple levers to capitalize on the growing momentum in the optical industry.

The firm hiked its price target for Nokia to $12.4 from $7.99, implying an upside of nearly 22% from current levels.

AI Frenzy Drives Up Energy Costs

The AI data center frenzy has driven up energy costs for households in the U.S.

Latest data from the Energy Information Administration shows that residential retail prices in the U.S. are up more than $0.17 per kilowatt-hour in January 2026, rising by nearly 10% year-on-year.

Last month, Tesla Inc. (TSLA) and Alphabet Inc.’s (GOOG, GOOGL) Google reportedly joined the Utilize coalition to address concerns of energy affordability.

According to a CNBC report citing a Goldman Sachs note, electricity costs outpaced inflation in 2025.

Electricity prices soared 6.9% year-on-year in 2025, while headline inflation stood at 2.9% during the year, according to the report. The analysts stated that electricity costs are expected to rise through the decade, with data centers accounting for 40% of the overall growth in electricity demand.

How Did Retail Traders React?

Retail sentiment on Stocktwits around Nokia trended in the ‘extremely bullish’ territory with message volumes at ‘high’ levels. NOK was among the top trending tickers on the platform at the time of writing.

One user stated that Nokia seems to be on a growth trajectory once again after a decade.

NOK stock is up 56% year-to-date and 105% over the past 12 months. The Defiance Quantum ETF (QTUM) is up 66% over the past 12 months, while the Global X Artificial Intelligence & Technology ETF (AIQ) is up 45%.

Also See: OpenAI Reportedly Says Microsoft Has 'Limited' Its Ability To Reach Clients – But Bernstein Says AI Concerns Overdone

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