Stock Market Today, April 13: Nokia Surges After Bank of America Upgrade Highlights Optical and AI Networking Demand

Nokia (NYSE:NOK), which provides network infrastructure and services, closed Monday at $10.38, up 9.67%. The stock moved higher after a Bank of America upgrade to “buy.” Investors will be watching for upcoming first-quarter earnings and AI-driven networking demand. Trading volume reached 147.9 million shares, about 178% above its three-month average of 53.2 million shares. Nokia IPO'd in 1994 and has grown 686% since going public.

How the markets moved today

The S&P 500 rose 1.01% to close at 6,886, while the Nasdaq Composite gained 1.23% to finish at 23,184. Within telecommunications equipment, industry peers Telefonaktiebolaget LM Ericsson closed at $12.03, up 1.26%, and Cisco Systems ended at $82.35, rising 0.16% as investors assessed networking demand.

What this means for investors

A Bank of America analyst upgraded Nokia’s rating from “hold” to “buy” today and set a price target of $12.40. This target implies nearly 20% upside in the stock -- even after today’s news sent shares up 10%. The analyst noted that after acquiring Infinera, Nokia and its optical systems operations are poised to thrive thanks to hyperscaler and AI demand.

Bank of America’s analyst also noted Europe’s push for sovereign data centers and Nokia’s partnership with Nvidia on the 6G rollout as further growth catalysts, highlighting the company’s expansion beyond its traditional telecom business. Despite already rising by 96% over the last year, Nokia’s stock still trades at only 26 times forward earnings, making it an interesting option for investors focused on AI growth.

Bank of America is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has positions in Nvidia. The Motley Fool has positions in and recommends Cisco Systems and Nvidia. The Motley Fool has a disclosure policy.