MS ups Nokia on AI-fuelled demand

Morgan Stanley raises Finnish telecoms equipment maker Nokia NOKIA.HE to "overweight" from "equal-weight" on AI-driven demand

Nokia's revenues from AI & Cloud are relatively small, accounting for about 6% of group revenues, but they are "growing rapidly fuelled by the data center construction boom" - MS

Stock up 1.6% at 0808 GMT

MS highlights Nokia's partnership with NVIDIA NVDA.O, which holds a 3% stake, and strong demand in optical networking as key catalysts

Nokia's valuation is not fully reflective of the pivot to AI, says the brokerage

MS also notes geopolitical trends favouring Western suppliers of critical infrastructure, stabilisation in the mobile networks division as positive factors

Out of the 28 analysts covering the stock, 16 rate it "strong buy" or "buy", seven "hold", and five "sell" or "strong sell" - LSEG