Key Highlights

  • Nokia jumped after its CEO dismissed concerns about overbuilding in AI infrastructure.
  • The comments addressed one of the biggest debates on Wall Street about whether AI data-center spending will exceed demand.
  • Marvell Technology raised its fiscal 2028 Revenue outlook to $20 billion, pointing to a $400 billion addressable market by 2030.
  • Ciena, Arista Networks, Astera Labs and Corning all rose as part of the broader networking rally.

Nokia (NYSE:NOK) jumped on Tuesday, October 6, ranking among the notable gainers on the NYSE Composite. The Finnish telecom equipment maker's chief executive dismissed concerns about overbuilding in AI infrastructure, addressing one of the biggest debates on Wall Street: whether the huge sums technology companies are spending on data centers will eventually exceed demand.

The detailed wording of the CEO's remarks was not available in the sources reviewed. The message, however, was clear enough to lift Nokia's American depositary receipts and to ripple through other networking names, which have become closely tied to the pace of data-center construction.

Nokia makes mobile network equipment, optical and IP networking gear and related software, and it licenses a large portfolio of patents. Its networking products are used by telecom operators and, increasingly, by cloud and data-center customers building the connections that link AI computing clusters.

Networking Peers Rallied

Nokia's comments arrived alongside upbeat signals from Marvell Technology (NASDAQ:MRVL), which held an investor day and raised its fiscal 2028 revenue outlook to $20 billion from $18 billion. Marvell closed at $287.01. Its CEO pointed to a $400 billion addressable market by 2030.

Ciena (NYSE:CIEN), which sells optical networking equipment, climbed strongly on the combination of Marvell's targets and Nokia's commentary, with Evercore ISI keeping an Outperform rating and a $550 price target. Arista Networks (NYSE:ANET), Astera Labs (NASDAQ:ALAB) and Corning (NYSE:GLW) also rose, while MACOM (NASDAQ:MTSI) got an extra boost from a BMO Capital upgrade tied to its optical chipsets for AI data centers.

A Tech-Led Record Day

The rally in networking fit into a broader technology-led advance. The S&P 500 rose about 45 points to a record 7,818.93 and the Nasdaq Composite also closed at a record just under 27,600. Nvidia (NASDAQ:NVDA) finished at a record, with a Market Value approaching $6 trillion, and AMD's (NASDAQ:AMD) chief executive said Demand for compute continues to outrun supply.

On the New York Stock Exchange, advancing issues outnumbered decliners by 1,642 to 1,075, a healthier balance than on the Nasdaq. The NYSE Composite's closing level was not widely reported, but the breadth figures pointed to a broadly positive session for the big board.

Debate Not Settled

Concerns about overbuilding have not gone away. Investors remain focused on how quickly AI spending converts into revenue and profit, and how long the largest buyers can sustain their current pace of investment. The day's rally was driven in part by investors choosing to focus on what was described as "the extraordinary Earnings growth being delivered by AI names."

Treasury yields eased, with the 10-year near 5.28, and the dollar slipped from a 17-month high, a mild tailwind for overseas companies whose results are converted into dollars.

The Next Quarterly Report Will Test the Confidence

Nokia's third-quarter report will be the next chance to test the CEO's confidence against order trends from both telecom operators and data-center customers. The networking group will also take cues from upcoming results across the chip and cloud sectors.