Nokia's stock nears a critical €10 support level. Weakness in its legacy telecommunications business tempers investor optimism around its AI transformation.
Nokia has made strategic moves into AI and advanced networking, including a partnership with Nvidia. However, immediate financial returns have not offset declines in traditional operations.
The company's Fixed Networks division reported a 13% revenue decline. This highlights challenges in carrier spending and infrastructure investments.
Faster-growing segments include optical networking, enterprise services, and cloud infrastructure. These segments show promise. However, they have not yet reached the scale to fully compensate for the downturn in legacy business parts. This leads to investor concern about consistent earnings growth.