Key HighlightsShares of Nokia climbed 12% following the introduction of agentic AI-powered tools designed to enable networks to self-diagnose and repair issues autonomously.These innovative solutions are now accessible to broadband providers and residential network users, capable of preventing service disruptions before they impact customers.Cisco’s exceptional quarterly performance — featuring 12% revenue growth and a 25% surge in networking revenue — provided a boost to the entire networking industry.Cisco increased its annual AI order projection from $5 billion to $9 billion, reinforcing optimism for networking equipment providers like Nokia operating in similar markets.Nokia’s valuation has expanded to 91 times trailing earnings, compared to 35x one year prior, as the stock has nearly tripled over the past twelve months.Nokia shares reached a fresh multi-year peak on Wednesday, climbing to $14.71 with a 12.1% gain — marking price levels not witnessed since spring 2009.Nokia Oyj, NOKThe driving force behind this surge was Nokia’s unveiling of innovative agentic AI solutions for network administration, now offered to both broadband service providers and residential network users.This advanced platform delivers network performance optimization, voice-activated controls, and comprehensive multi-step diagnostic capabilities that autonomously identify and resolve issues — eliminating the need for human technicians.“We are fundamentally changing how home and broadband networks are deployed and run,” Nokia executive Sandy Motley said in a statement.For broadband providers, the value proposition is compelling: anticipate and prevent service interruptions before customers experience them, reduce operational expenses associated with field technician dispatches, and accelerate customer service response times.Cisco’s Stellar Performance Provides Additional MomentumNokia’s product announcement wasn’t the sole factor driving the stock higher. On Thursday, Nokia gained an additional 7% after Cisco unveiled quarterly earnings that significantly exceeded Wall Street projections.Cisco reported revenue totaling $15.84 billion, representing a 12% year-over-year increase, while net income reached $3.37 billion. The company’s networking revenue hit $8.82 billion, up 25%, surpassing analyst forecasts of $8.47 billion.Cisco’s networking product orders experienced growth exceeding 50% year-over-year during the quarter, while data-center switching orders increased more than 40%.The company also elevated its full-year AI order projection to $9 billion, up from the previous estimate of $5 billion, and boosted its AI revenue guidance to $4 billion from $3 billion.Nokia manufactures networking and optical equipment deployed in the same AI infrastructure expansion. In recent weeks, Nokia elevated its own growth projections, forecasting the AI and cloud addressable market to grow at a 27% annual rate through 2028, revised upward from an earlier 16% estimate.Valuation Metrics Warrant AttentionThe stock’s performance has been remarkable. Nokia has doubled in value over three months and nearly tripled during the past year.At present trading levels, Nokia commands a valuation of 91 times trailing earnings. This represents a substantial increase from 35x one year ago and just 5.1x in May 2023.The company’s market capitalization currently stands at $82 billion.For Cisco’s upcoming quarter, management provided guidance for adjusted earnings between $1.16 and $1.18 per share on revenue ranging from $16.7 billion to $16.9 billion — significantly exceeding analyst consensus of $1.07 per share on $15.82 billion in revenue.Cisco also disclosed plans to reduce headcount by fewer than 4,000 positions this quarter, representing under 5% of its total workforce, with associated restructuring expenses of approximately $1 billion.Nokia’s 52-week trading range spans $4.00 to $14.83, with Wednesday’s intraday high of $14.82 approaching the upper boundary of that range.The post Nokia (NOK) Stock Soars 12% Following AI Network Launch and Cisco’s Strong Earnings appeared first on Blockonomi.