To The Moon

I've ignored $Nokia Oyj(NOK)$  for years, dismissing it as a "has-been" phone brand. Then, the $NVIDIA(NVDA)$  news hit, and I decided to actually look at the books. What I found shocked me: a rock-solid, financially healthy company that the market is pricing for death.

This is, from my perspective, one of the most mispriced opportunities on the market.

First, the company is a financial fortress, not a distressed asset. Its Q3 2025 report showed a net cash balance of €3.0 billion. It has a very low debt-to-equity ratio (around 0.21) and a healthy current ratio (1.46). This is a low-risk, stable company.

Second, the pivot to AI infrastructure is not just a "plan"—it's already working. In Q3, comparable net sales grew 9% year-over-year. This wasn't driven by old tech; it was led by the Network Infrastructure division, where Optical Networks surged 19%, pulling in massive orders from AI and cloud customers.

Finally, the $1 billion equity investment from Nvidia is the ultimate validation. The kingmaker of the AI revolution just publicly endorsed Nokia's 6G and AI data center strategy. This isn't just cash; it's a strategic partnership to build the future of AI-native networks.

The market is valuing Nokia like a dying telecom company, but its fundamentals are now that of a high-growth AI infrastructure play. With a strong earnings forecast and a healthy PEG ratio, the disconnect is massive. The Nvidia investment is the starting gun, and the "broken" valuation provides the upside.