Nokia Oyj's stock experienced a significant pre-market plunge of 5.29% on Friday, reflecting ongoing selling pressure on the communication equipment company.

The decline represents continued profit-taking following a sharp short-term rally where Nokia surged approximately 18% from a late-May low. This previous advance was driven by multiple catalysts including NVIDIA's strategic acquisition of approximately 3% of Nokia's shares for nearly $1 billion, positive sentiment from the GTC Taipei conference, and strong first-quarter results showing adjusted operating profit up 54% year-over-year with AI and cloud revenue growing 49%.

The accumulated profit-taking pressure was compounded by broader communication equipment and optical networking sector weakness. The sector faced headwinds after Broadcom's CEO declined to raise AI revenue guidance for fiscal year 2027 despite strong quarterly results, triggering a sector-wide selloff. Additionally, negative sentiment from European markets, where Nokia's Helsinki-listed shares fell significantly, further weighed on the U.S.-listed ADR during the pre-market session.