Nokia Oyj's stock experienced a sharp decline of 5.08% in after-hours trading on Wednesday, marking a significant reversal from its recent positive performance.

The after-hours plunge is attributed to notable profit-taking pressure. Nokia's shares had surged approximately 18% from a low on May 29 to an intraday high earlier on Wednesday, driven by multiple catalysts including a strategic investment from NVIDIA and a positive AI infrastructure narrative. The rapid accumulation of these short-term gains prompted investors to lock in profits.

Furthermore, the broader communication equipment sector faced headwills during the session, which weighed on sentiment. Several of Nokia's peers, including Applied Optoelectronics, Arista Networks, Lumentum, and Ciena, also traded lower, contributing to the downward pressure on the stock in extended trading.