Nokia Oyj's stock surged 5.02% in pre-market trading on Tuesday, reflecting strong investor optimism following a series of positive developments.

The rally was fueled by S&P's upgrade of Nokia's credit outlook from "stable" to "positive," citing business diversification and stable cash flow. Additionally, the company's Q2 results significantly exceeded expectations, with comparable operating profit rising 18% year-over-year to EUR 434 million, well above the market consensus of EUR 382 million. AI and cloud business orders reached EUR 2.8 billion, with sales more than doubling year-over-year.

Nokia also raised its full-year adjusted operating profit guidance to EUR 2.1 billion to EUR 2.6 billion, reflecting optimism regarding AI-related demand. The options market showed bullish sentiment, with a Call/Put volume ratio of 2.63 and large block trades on far-dated $10 calls, suggesting expectations of further upside.