u/GOHS7

Everyone’s been chasing AI chips, but nobody really talks about the stuff that actually lets AI function at scale—the networking. That’s where Nokia comes in. They’re big in fiber, optical networking, and data center connections… basically the plumbing for AI. And as AI ramps, that demand doesn’t go away—it increases.

What made me start looking at this was the last earnings. They weren’t just “okay”—they were actually strong. Operating profit was up ~54% YoY, and AI/cloud-related sales jumped hard. They also pulled in about €1B in AI-related orders in just one quarter. That’s not hype—that’s real money coming in tied to this trend.

On top of that, you’ve got institutions starting to flip bullish. There have been a few upgrades recently (BofA, Argus, etc.), higher price targets, and the stock pushed up to levels it hasn’t seen in years. Feels like this is just starting to get repriced, not finished.

Right now it’s been sitting around the mid-$10s after earnings, kind of consolidating. The level that matters is that ~$11–$11.5 range. If it breaks that cleanly, there’s not much resistance above since it hasn’t traded there in a long time.

That’s why I’m looking at the June 5 $11.5 calls. They’re slightly out of the money, still relatively cheap, and give a few weeks for momentum to play out. Basically just a bet that this keeps trending and finally pushes through that resistance.

Not risk-free obviously—if it chops sideways or rejects $11 again, those calls will get eaten by theta. And yeah, part of Nokia is still slow telecom, so it’s not a pure AI rocket stock.

But overall it feels like one of those quieter setups where: AI narrative + institutional upgrades + solid earnings + decent chart = potential breakout

Position: June 5 $11.5 calls

Not financial advice