Nokia (NOK) is rallying as the market reprices its Network Infrastructure trajectory after the company lifted its 2026 growth assumptions for the segment, explicitly pointing to stronger Optical Networks and improving IP Networks momentum tied to AI and cloud customer demand. The guidance reset has helped shift the narrative from a cyclical telecom equipment story toward an AI-networking infrastructure beneficiary, amplifying the upside reaction during the current session. �citeturn1search1turn1search4turn1search6

In its Q1 2026 interim report, Nokia highlighted that Network Infrastructure net sales grew, with Optical Networks up sharply and supported by strong order intake and a book-to-bill well above one. In the same update, Nokia raised its 2026 growth assumption for Network Infrastructure to 12%–14% and set combined Optical + IP Networks growth expectations at 18%–20%, reinforcing that AI and cloud buildouts are translating into tangible demand signals. �citeturn1search1turn1search4turn1search6

Alongside higher growth assumptions, Nokia increased its view of the AI & Cloud addressable market growth rate for 2025–2028, strengthening the longer-duration demand backdrop investors use to value optical transport and routing/switching exposure. Separately, Nokia’s declared €0.04 dividend (record date in late April and payment in early May) has kept incremental attention on the name and may be contributing to near-term demand for shares. �citeturn1search1turn1search4turn1search0

Focus is shifting to whether Nokia can sustain optical order strength into revenue conversion while scaling investments in Optical Networks without sacrificing profitability. Investors will also watch for follow-through in IP Networks growth in upcoming quarters and any additional changes to segment assumptions that confirm the AI/cloud buildout cycle is becoming a durable multi-year driver for Nokia’s Network Infrastructure results. �citeturn1search1turn1search4turn1search11