Shares of Nokia (NOK) surged 10% on market open on Thursday, the surge comes after the company’s CEO announced plans to turn around 5G growth in China and other avenues and markets.
This year we are seeing great demand in 5G and also in what we call network infrastructure which is basically fiber connections to homes and offices,Pekka lundmark | ceo, nokia
The pandemic has increased infrastructure demand, which is now spread out over the year, reducing seasonality that historically resulted in outsized increases in the fourth quarter.
One North American customer would hurt growth in the second half of the year, according to the firm. Last year, Nokia lost a portion of a contract with Verizon when Samsung secured a $6 billion offer on the spur of the moment.
In addition, Nokia has reported positive earnings and they seem to be getting profitable causing NOK stock to rally.
In a statement, Lundmark said, “Today’s results show that we are on track to deliver on our three-phased strategy to achieve sustainable, successful growth and technology leadership as announced.”
Strong growth in sales of 5G networks and devices, especially in the US and China, drove Nokia’s operations in the quarter, according to the group.