Artificial Intelligence and Aerospace Momentum Propel Tech Stocks to Record Highs
New York, Tuesday, 26 May 2026.
Nokia, Navitas, and Rocket Lab hit 52-week highs last week on artificial intelligence and aerospace momentum, with Navitas remarkably reaching a $6.8 billion valuation despite minimal actual revenue.
Nokia’s AI Pivot Masks Underlying Profit Pressures
Nokia Corporation (NYSE: NOK) achieved a 52-week high of $15.78 on Friday, May 22, 2026, culminating a rally of over 137% since the beginning of the year [1][5]. This remarkable resurgence—pushing the stock to a 15-year peak—stems from a strategic repositioning away from traditional telecommunications equipment toward artificial intelligence (AI) [GPT] and cloud infrastructure [3]. During the week of May 17, 2026, Nokia launched an AI Networking Innovation Lab in Sunnyvale, California, partnering with Advanced Micro Devices (AMD), Super Micro Computer, Keysight, and Nscale [2][3][4]. This pivot is further supported by Nokia’s recent acquisition of optical technology firm Infinera, alongside a reported 49% surge in AI and cloud-related revenue during the first quarter of 2026 [3]. Wall Street has responded favorably; Morgan Stanley upgraded the stock to “Overweight” on May 22, 2026, raising its price target from $13.00 to $16.50, representing an increase of 26.923 percent [1][3][5].
Financial Realities Challenge Nokia’s Valuation
Despite the market enthusiasm and a prior $1 billion investment from Nvidia in October 2025, Nokia’s underlying financial reality presents a more complex picture [2]. The company’s operating profit collapsed by 55% year-over-year, dropping from EUR 1.97 billion in 2024 to EUR 885 million in 2025, despite maintaining flat net sales of EUR 19.9 billion [2]. Furthermore, Nokia’s dividend yield has fallen to 1.0%.