Actions of Nokia Company (NOK -14.81%) plunged on Thursday, along with the rest of the AI-related technology sector, falling 15.4% as of 3:49 p.m. EDT.
Nokia posted higher profit this morning; However, in this earnings season, tech company earnings “beats” don’t mean much unless they are truly huge. Excessively high expectations, as well as fears about the sustainability of AI spending, now appear to be weighing on Nokia shares.
NOK Nokia
$7.88-$1.37 (-14.81%)
NYSE · At 4 p.m. ET on 10/22/26
Nokia sees strong AI-related growth, market shrugs
Like most AI stocks, Nokia had already rebounded this year before this earnings report came out, although the stock was well below its June highs. Yet Nokia went public today with a P/E ratio in the 70s, leaving little room for disappointment.
In the third quarter, the company increased its revenue by 9.7% to €5.15 billion, with adjusted earnings per share up 50% to $0.09 per share. This earnings growth showed a nice 220 basis point expansion in operating margins. Both figures lived up to expectations.
10% revenue growth doesn’t necessarily mean “AI growth,” but Nokia’s segments show a remarkable range. Management noted that AI and cloud customers grew revenue by 123%, while Nokia’s order intake jumped 118% for this segment.
AI and cloud sales appear in the overall networking segment, which increased revenue by 15%. Mobile networks saw a more modest growth of 5%, in line with the overall growth of this sector.
These are solid results, but perhaps not enough for a market that previously gave Nokia “AI stock” status. Additionally, Nokia simply reiterated its 2026 guidance without increasing it, which may have contributed to disappointed expectations.
Image source: Getty Images.
An industry-wide liquidation
It appears that Nokia’s sell-off has less to do with the reported results and more to do with the widespread selling of AI shares today. While most AI companies have reported strong results, it appears investors are growing nervous about the sustainability of these growth and profit numbers after a three-year “boom.”
However, if AI development continues for, say, five years, current prices would be a bargain. While the duration of the boom is uncertain, investors looking to gain more exposure to AI may want to buy this dip.
Gn bussni
