Core Viewpoint - Nokia's strategic shift towards AI, along with other initiatives to improve financial performance, is expected to drive the stock to multidecade highs by 2026 [1][2]. Financial Performance - Since 2020, Nokia has gained increased investor interest as both a turnaround opportunity and a meme stock, with a 64% rise over the past five years, which is lower than the S&P 500's increase of over 86% during the same period [1]. - The current market capitalization of Nokia is $35 billion, with shares recently trading at $6.38, reflecting a daily change of 2.49% [4]. Stock Price Potential - Analysts predict that Nokia's shares could reach prices not seen in over a decade, potentially climbing to $10 per share by 2026 if the company delivers strong results and updates regarding its AI initiatives [2][6]. - Following Nvidia's announcement of a $1 billion investment to support AI development, Nokia's shares surged from approximately $6 to a peak of $8.19, although they have since retraced to $6.18 [5]. Earnings Growth and Valuation - Sell-side analysts estimate that Nokia could experience 25% earnings growth in 2026, which may lead to significant valuation expansion [6]. - Currently trading at a forward P/E of around 13, Nokia's stock could see a rerating to the mid-to-high 20s, resulting in prices exceeding $10 per share [7].