Nokia has returned to favor with investors since the market recognized the group's position within the artificial intelligence value chain. This morning's continued rally is fueled by Cisco's 20% surge in after-hours trading last night.

Cisco reported earnings and orders that exceeded expectations, accompanied by several impactful statements. Most notably, AI infrastructure orders surged by 152%. "Nokia competes with Cisco in the router, switch, and pluggable transceiver segments, and Cisco's robust outlook for both orders and sales is equally positive for Nokia's prospects," explains Jefferies tech specialist William Beavington. The analyst also notes that the visible strengthening of orders in the telecommunications segment is a new development and "particularly positive" for Nokia.

Part of the journey is already complete

Two weeks ago, Beavington shared an insight that resonated deeply with the market. "We believe Nokia is currently in the same position ASML was around December," he explained at the time. Since then, the stock has gained over 20%, surpassing 13 EUR and approaching Jefferies' "bull case" valuation of 14.20 EUR. Nevertheless, the analyst remains positive, believing that earnings should grow beyond market expectations in the coming months.