Nokia's stock soared amid the artificial intelligence boom
Nokia’s stock has surged amid the artificial intelligence boom and new tech partnerships, and this is already being called the Finnish brand’s second coming. The company is returning to the spotlight after years of decline, but experts warn that behind the impressive numbers lies the same old telecom business. This is according to Bloomberg.
Finnish company Nokia, which not long ago was written off as a former mobile market giant, has unexpectedly become one of the hottest companies in Europe again, as its shares have jumped by approximately 140% since the start of the year on a wave of interest in artificial intelligence and data center infrastructure. The market has literally reimagined the company: it is now increasingly seen not as a manufacturer of “old telecom hardware,” but as a player that can profit from the world’s new digital architecture.
One of the key growth drivers has been the surging demand for equipment enabling high-speed data transmission between data centers, as modern AI models require massive data flows without delays or disruptions—and this is precisely the segment where Nokia has actively strengthened its position. Additionally, the market was boosted by the integration with the American company Infinera, which allowed the company to strengthen its optical networking division, as well as a sharp increase in sales in this segment by nearly half over the quarter.
A separate driver was interest from Nvidia, which, according to market data, has invested about $1 billion and is considering collaborating with Nokia on accelerating network technologies for 5G and the future 6G, as well as for supercomputing solutions in neural network training. Against this backdrop, major banks and analysts have begun to shift their approach to valuing the company, arguing that traditional financial models no longer reflect its potential in the AI economy.
However, despite the optimism, not everyone shares the market’s euphoria. Analysts point out that more than half of Nokia’s revenue still comes from its traditional 5G business, which is currently slowing down due to cuts in investment in telecom infrastructure worldwide, while the AI segment itself accounts for only a small portion of revenue so far. That is why experts caution: the company’s future will depend not on the hype surrounding artificial intelligence, but on whether it can turn this trend into stable long-term contracts with major tech players.
By 2026, the presence of artificial intelligence had become one of the deciding factors when choosing a new smartphone, and users began actively integrating AI tools into their daily lives.
