Nokia (NOK) has made a surprise comeback after a period of stagnation in the tech sector, with a surge in shares following the AI buildout of the company. The company's first-quarter 2026 (Q1FY26) earnings report revealed that its AI and cloud infrastructure revenue grew 49% year over year in Q1, accounting for 8% of group sales. The acquisition of U.S.-based Infinera and partnership with Nvidia (NVDA), which provided a significant investment in Nokia, has also boosted the company's fortunes. Despite this, Nokia shares have surged to a 16-year high and the company’s full-year outlook remains unchanged, targeting €2.0-€2.5 billion in comparable operating profit. Despite these positive results, Nokia trades at approximately 25 times forward earnings.