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Why Jim Cramer Recommends Nokia For the First Time Since 1997

Party like it's...1997? Jim Cramer explains why he thinks that Nokia has upside potential.

Time to party?

Jim Cramer noted that he hasn't been able to recommend Nokia (NOK) - Get Nokia Oyj Sponsored ADR Report shares since 1997, but now that the stock has an attractive valuation, and a stronger end-to-end portfolio of solutions, he thinks there's upside potential if Europe follows the U.S. lead on shutting the door to Huawei and ZTE in 5G markets, Baccardax wrote.

Nokia is Real Money's Stock of the Day.

Related: Nokia Stock Sinks Despite Potential Trade War Tailwind

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"For years Nokia and Ericsson have been steamrolled by Huawei and ZTE," Cramer told his Mad Money audience on CNBC last night. "That's over. The U.S. government is doing everything it can to keep these companies out of 5G networks, not just here, but worldwide and that is a huge opportunity for Nokia and Ericsson."

Related: Nokia Has Corrected Back to What Should Be Good Support

"I bet both stocks will get more attractive as our government keeps ratcheting up the pressure on allies to not use anything from these Chinese companies," Cramer said.

Cramer further breaks down why investors should care about the company behind the indestructible flip phones.

Get access to Jim Cramer's VIP club for investors, Action Alerts Plus, and find out if Nokia is in his portfolio.