Nokia Oyj's stock surged 5.17% in pre-market trading, extending its recent upward momentum. The movement reflects a significant positive shift for the telecommunications equipment provider during the early trading session.
The rally was primarily driven by a sector-wide surge following Cisco Systems' blowout quarterly earnings report. Cisco surged over 19% after delivering results and guidance that exceeded market expectations, triggering broad gains across the communication equipment sector. Nokia, as a peer company, benefited significantly from this positive sector linkage effect.
Nokia's own strong fundamentals provided additional support for the move. The company recently reported better-than-expected first-quarter results with adjusted operating profit jumping 54% year-over-year, while its AI and cloud business revenue surged 49%. JPMorgan had significantly raised its price target on Nokia, reinforcing fundamental confidence in the stock.
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