Cramer Recommends 90s Tech Legend as AI Play: Nokia Set to Return as Infrastructure Supplier

Jim Cramer recommended buying Nokia stock on September 16, 2026, during the "Lightning Round" segment of his CNBC show "Mad Money." The TV stock market commentator justified his recommendation with the transformation of the Finnish company from failed smartphone maker to supplier of infrastructure components for AI data centers.

"I like Nokia very much. I'm glad you brought it up. I think it's a great situation and I would buy right here," Cramer said according to TheStreet. The stock was trading at $10.60 on September 17, 2026, and had gained around 62% since the start of the year. Over a twelve-month period, the gain was more than 130%.

Valuation Below Typical AI Multiples

Cramer highlighted Nokia's moderate valuation compared to other AI stocks. Nokia is trading at around 22 times expected earnings – well below the multiples of 30 and above that are common for many AI stocks. For comparison, Cramer pointed to BWX Technologies, a supplier for nuclear power plants, which trades at 30 times earnings and seems too expensive to him in the current interest rate environment.

The historical high of Nokia stock is around $29, so the price is still significantly below that level. However, a negative free cash flow of approximately $835 million in the second quarter burdened the balance sheet. The company expects a cash flow recovery once the current restructuring is completed in 2027.

From Mobile Phone Giant to Infrastructure Supplier

Under CEO Justin Hotard, Nokia has repositioned itself. The company now supplies core components for AI data centers of Western hyperscalers – including optical network equipment, IP routers, fiber optic infrastructure, and traditional mobile technology for carriers. Customers include Microsoft and Google.

On September 17, 2026, one day after Cramer's recommendation, Nokia announced an expanded partnership with Microsoft. The Nokia Data Suite will be integrated into Microsoft Fabric, the company's unified analytics platform. According to the company, the integration should reduce the data preparation time for telecom operators' network data from weeks to minutes – specifically for AI applications. The stock rose around 3.8% on the day of the announcement.

Order Book of 2.8 Billion Euros

Nokia has an AI order book worth 2.8 billion euros. According to analysts, investors should track three metrics: first, the pace at which these orders are converted into actual revenue; second, the timeline for cash flow recovery following the completion of restructuring in 2027; third, the adoption of the Microsoft Fabric platform among telecom operators.

Should any of these factors fall short of expectations, the current valuation could be difficult to justify, warn observers. Investors who enter based solely on Cramer's recommendation should carefully examine capital allocation.

Cramer's AI Strategy Throughout the Year

Cramer commented on AI investments multiple times throughout 2026. On May 9, 2026, he argued that massive, real AI investments would support market dynamics despite volatility. On March 6, 2026, he recommended buying Alphabet and Amazon as "trillion-dollar AI stocks."

In late 2025, Cramer had warned of a "reckoning" in speculative AI and tech stocks, calling the preceding phase a "year of magical investing." On November 5, 2025, he named four AI stocks – including Snowflake, Unusual Machines, and Palantir – and emphasized that "smart speculation" could change lives.

Nokia is the latest example of Cramer's approach to identifying established tech companies with AI exposure that have not yet reached the valuations of pure AI players.