Key Points

The excitement around SpaceX going public may fade fast after launch, opening the door to an early price drop in shares.
Other equities with steadier values and clearer prospects trade at better discounts now.
One choice stands out as especially attractive for investors focused on the next five years and beyond.
10 stocks we like better than Nokia ›

The excitement around SpaceX reaching public markets stays strong. It feels like a must-own name no matter the cost.

I am staying away for now. I may step in later once shares face the typical post-IPO dip. For the time being I see a clearer opportunity in a steadier name with lower swings. That pick is the Finnish telecom firm Nokia (NYSE: NOK).

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Not the Nokia of the past

Most people recall Nokia as a former leader in mobile handsets. The company still licenses its technology and brand in that space, yet its main focus has shifted to communications infrastructure. It supplies gear for mobile networks, data-center links, broadband systems, and related products.

These fields are competitive and, apart from artificial-intelligence uses, they are not growing rapidly. Nokia posted 2025 revenue of 19.9 billion euros, up just 3 percent from 2024, while operating profits fell to roughly one-third of the prior year's level.

A helpful trend is emerging that many investors appear to be missing.

AI's overlooked effect

Most observers grasp that today's AI systems handle huge volumes of data. Fewer notice that this data must travel into the data center from outside sources and then return to users in usable form.

Figures from the International Telecommunication Union show internet traffic doubled between 2020 and 2025, driven largely by AI growth. Existing telecom networks, especially mobile ones, were not built for this load.

Image source: Getty Images.

The rise will continue. Nokia projects global traffic will increase about fivefold from 2024 levels by 2034, with AI responsible for much of the jump.

The answer is to apply AI itself to manage the flood of data moving across networks.

Nokia has become a quiet leader here. Last October the company teamed with AI chip leader Nvidia to create AI-driven radio-access-network technology aimed at the coming 6G era that can handle surging AI traffic.

Look past the near term

Other firms are also developing similar tools, and Nokia will not gain immediate revenue from this work. Analysts expect only about 5 percent revenue growth this year and slightly more next year. The stock has already climbed since the Nvidia partnership was announced.

Focus instead on the longer horizon. As AI advances, the smartphone most people carry will turn into an always-on AI device that constantly exchanges data. The recent 20 percent pullback in NOK shares from its early-June high may offer the best entry point for some time.

Should you buy Nokia shares today?

Before adding Nokia to your portfolio, keep this in mind:

The Motley Fool Stock Advisor team recently named the 10 best stocks for investors to own now, and Nokia did not make the list. The 10 names that did could deliver strong gains over the coming years.

Recall that Netflix appeared on the list December 17, 2004. A $1,000 investment then would be worth $442,220 today. Nvidia joined April 15, 2005, and the same $1,000 would now equal $1,230,114.

Stock Advisor's average return stands at 926 percent, well ahead of the S&P 500's 203 percent. Check the newest top-10 list, available with Stock Advisor, and join a community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 12, 2026.

James Brumley holds none of the stocks mentioned. The Motley Fool owns shares of and recommends Nvidia. The Motley Fool follows a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.