Bank of America Securities upgraded Nokia (NYSE:NOK) to Buy from Neutral. The firm increased its price target to €10.70 from €6.87.
The upgrade follows Nokia's acquisition of Infinera and a scheduled CEO change in 2025. These moves signal a strategic shift toward the optical technology sector.
BofA expects rising demand for AI data center infrastructure to drive growth. The firm anticipates higher margins through cost efficiencies and a software-centric focus.
Nokia continues to gain market share by replacing Huawei and ZTE equipment in Europe. A partnership with Nvidia in the AI RAN space offers further upside.