• NOK net sales up 4% to €4.50 billion, helped by 6% growth in network infrastructure and 3% in mobile infrastructure.
• The company forecast current-quarter net sales growth of 5% to 9% on a q-o-q basis.
• Currently tracking “somewhat above the mid-point” of the operating profit outlook for the full year.

U.S.-listed shares of Nokia (NOK) are on track to open at an over 16-year high if session gains hold on Thursday. This comes after the telecom network equipment provider reported robust first-quarter results fueled by the ongoing artificial intelligence data center boom.

The company is seeing benefits from the buildout of its high-speed optical and IP networks, which drove it to raise guidance for the key network infrastructure segment.

Key Growth Driver: Optical Networks

In its earnings report, the company said it secured multiple important AI and cloud orders in its network infrastructure business. That prompted it to raise its net sales growth forecast for the unit to 12%-14% this year, up from its previous guidance of 6%-8% issued in January. Nokia also decided to increase its optical network investments due to the soaring demand.

Within network infrastructure, the company also noted strong traction in IP networks, driven by demand for data center needs.

“Across the supply chain, demand is accelerating and lead times are extending,” the company said in a public statement. 

NOK Q1 Earnings Fineprint

For the first quarter, the Finland-based company saw net sales rise 4% to €4.50 billion, which is comparable to the consensus estimates of €4.59 billion. Driving that was network infrastructure net sales growth of 6%, and 3% from mobile infrastructure.

Nokia reported a profit of €0.05 per share, topping the consensus estimate by €0.01.

For the current quarter, the company forecasts a 5% to 9% increase in net sales on a quarter-over-quarter basis and estimates operating profit to account for between 12% and 16% of full-year operating profit.

For the full year, it guided operating profit between €2 billion and €2.5 billion, and said it is “currently tracking somewhat above the mid-point” of the outlook.

NOK Stock: How Did Retail Traders React?

On Stocktwits, retail sentiment about the stock turned ‘ bullish’ from ‘neutral’, while messaging volumes rose to ‘high’ from ‘normal’ over the last 24 hours.

One user on the platform cheered the report and expects the stock to touch $15.

Another user noted that the company has scope to grow on the back of optical networks and AI.

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