Nokia’s stock saw a 3% increase after an analyst upgraded the recommendation to outperform, with a price target of 4.30 euros per share. The acquisition of Infinera for $2.3 billion is a key factor driving this positive outlook. Nokia’s revenue from hyperscaler projects could increase significantly, currently at 5% of total revenue.

The company’s shift from handset production to networking technology has been met with optimism. The analyst believes that Nokia’s absorption of Infinera positions it well to benefit from investments in artificial intelligence capabilities. With the potential for growth in hyperscaler projects, Nokia’s revenue could see a substantial boost.

Investors should note that Nokia Oyj was not among the 10 best stock picks identified by The Motley Fool Stock Advisor team. The team has a total average return of 1,042%, outperforming the S&P 500. The latest top 10 list is available for those who join Stock Advisor for potential market-crushing returns.

Read more at Yahoo Finance: Why Nokia Stock Was Winning on Wednesday