Nokia Stock Jumps on EURO STOXX 50 Index Inclusion

Nokia's inclusion in the EURO STOXX 50 index has pushed its stock price higher overnight, as investors anticipate increased buying from passive funds and institutional buyers. The Finnish technology company will rejoin the top Eurozone index on Monday, after being dropped a year ago.

The addition to the EURO STOXX 50 is expected to trigger passive buying from index funds in the Eurozone, which could drive up prices even further and increase demand for its U.S.-listed shares. Nokia's extended partnership with Microsoft to develop an agentic, unified data foundation for telecom network automation has also contributed to Wall Street optimism.

Last week, B. Riley initiated coverage of Nokia with a 'Buy' rating and $15 price target, implying an upside of more than 40% from its last close on Friday. The firm said that Nokia is capitalizing on the AI data center supercycle and its EUR 2.8 billion AI and cloud order intake in the second quarter gives it 'strong visibility into 2027.'

Analyst Mike Genovese of Rosenblatt noted that strong demand for high-speed data transmission and high-capacity optical transport company Ciena would also positively flow through to Nokia, since hyperscalers are expected to qualify and allocate volume to a second source.