Shares of Nokia Oyj (NOK) plunged 5.04% in intraday trading, extending a sharp sell-off that began after the company reported second-quarter results. The decline reflects a classic “sell-the-news” reaction, as strong earnings failed to provide fresh upside momentum.

Nokia’s Q2 adjusted comparable operating profit surged 18% year-over-year to €4.34 billion, comfortably beating consensus estimates. The AI and cloud business posted order intake of €2.8 billion with sales more than doubling. However, the stock had rallied sharply in the run-up to the report, and investors used the print as an opportunity to lock in profits. Added caution came from the CEO’s remarks that chip supply constraints are extending order delivery timelines, raising uncertainty around near-term revenue conversion.

Analyst commentary further weighed on sentiment. UBS lowered its price target on Nokia to €9.65 from €11, citing limited further upside as much of the AI-driven optimism is already priced in, while Bank of America raised its target but noted that the bulk of AI orders will be delivered in 2027 and beyond. The combination of profit-taking, supply-chain concerns, and a more cautious valuation view drove the stock sharply lower.