Nokia Stock Rebounds on Bullish Analyst Call and Imminent Euro STOXX 50 Return

Nokia (NOKIA) shares rallied 2.6% in pre-open trading Tuesday, staging a recovery from a sharp selloff in the previous session. The rebound is supported by a bullish initiation from Rosenblatt Securities and the company's upcoming return to a key European stock index.

Analyst Cites AI Infrastructure Potential

Rosenblatt Securities initiated coverage on Nokia with a Buy rating and a $15 price target, providing a significant catalyst for the stock. The firm argued that the market undervalues Nokia's optical networking business with traditional telecom-equipment valuations, overlooking its role as a direct beneficiary of the buildout in artificial intelligence infrastructure.

According to Rosenblatt's note, the positive outlook is backed by strong performance metrics:

• Nokia’s Optical Networks division grew 20% year-over-year in the second quarter of 2026.
• Its AI and Cloud revenue more than doubled during the same period.
• AI and Cloud orders reached €2.8 billion in the quarter, with approximately half expected to convert into revenue within a year.

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Index Inclusion to Drive Passive Buying

Adding a structural tailwind, Nokia is set to rejoin the Euro STOXX 50 index on September 21, following a one-year absence. This development is significant as it typically compels passive investment funds that track the benchmark index to purchase the company's shares to rebalance their portfolios.

Context for the Rebound

Tuesday's rally follows a difficult prior session where Nokia's stock fell more than 13%. That decline was part of a broader sector-wide selloff among optical and AI infrastructure companies amid investor concerns about the pace of spending in the sector. The current recovery is occurring even as major U.S. indices were trading lower in the pre-market, underscoring that the move is driven by company-specific factors rather than a broader market lift.