Nokia (NOK) Received Ratings Upgrades from Morgan Stanley, Kepler Cheuvreux in January

Nokia Corp (NYSE:NOK) is one of the Best Tech Stocks Under $10 to Buy , at least based on two ratings upgrades that the company gained in January. For instance, Morgan Stanley upgraded Nokia to Overweight from Equal Weight on January 15, with a price target change to €6.50 from €4.20, noting that the company is now more exposed to network demand driven by data centers and AI, which now account for about 6% of group revenues. The analyst projected that the addressable market for data center and AI activity will likely increase by more than 15% annually, and that strong demand in optical networks also played a role in the upgrade.

Morgan Stanley’s upgrade of Nokia Corp (NYSE:NOK) followed a similar ratings change on January 6, this time by Kepler Cheuvreux, which upgraded the company to Buy from Hold and raised the price target to €6.60 from €5. The analyst projected that Nokia’s network infrastructure sales will increase 7% per year from 2025 to 2028, including 8% annually in IP networks and 12% in optical networks.

Known for its mobile phones in the 2000s, Nokia Corp (NYSE:NOK) currently operates in network infrastructure, technology, and software fields. The company has built the infrastructure behind mobile and fixed networks, including 5G, fiber, cloud, and data center solutions.

While we acknowledge the potential of NOK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.