Nokia (NYSE: NOK) sank 6.94% to $13.01 on June 26 amid sector-wide selling pressure on European tech stocks, with no company-specific negative news. The stock was at $12.93 on June 29, positioned inside a descending channel on the 2H chart with RSI at 41.78. Nokia’s Q1 2026 results, reported April 23, delivered an EPS beat of 31.39%, expanded gross margin 320 basis points to 45.5%, produced €629 million in free cash flow, and grew AI and Cloud customer revenue 49% year-over-year with a book-to-bill of approximately 3 times. AI and Cloud customer net sales are up 49% year-over-year, adding over €1 billion in new orders during a single quarter. CEO Justin Hotard noted demand in AI and Cloud segments remains strong, with Nokia running above the middle of its guidance range for comparable operating profit of €2.0 to €2.5 billion. Nokia hiked its 2026 guidance for Network Infrastructure to growth of 12 to 14% and for Optical plus IP Networks to growth of 18 to 20%. The Infinera acquisition, finalized in late 2024, brought optical networking scale. To address supply shortages, Nokia is building a new manufacturing plant in San Jose using indium phosphide technology expected to begin ramp in late 2026.