Nokia has shocked markets with a remarkable revival in 2026. Once dismissed as a fading telecom stock, the Finnish company has reinvented itself as a major supplier for artificial intelligence infrastructure. Its shares have surged more than 140% this year, climbing from about $6.50 to nearly $15.78.
The turnaround gained momentum after Nvidia invested $1 billion in October 2025, taking a 3% stake and partnering with Nokia on AI‑RAN technology. This innovation combines AI workloads with wireless networks, creating new opportunities in cloud and telecom.
In the first quarter of 2026, Nokia reported revenue of €4.5 billion, up 4% year on year. Operating profit jumped 54% to €281 million, while earnings per share rose 31% above analyst estimates. The company also secured €1 billion in AI‑related cloud orders, mainly for optical networking equipment inside hyperscale data centres.
Optical Networks grew 20% in the quarter, driven by hyperscalers racing to expand AI capacity. Nokia raised guidance for network infrastructure growth to 12%–14% and expects full‑year operating profit between €2 billion and €2.5 billion.
Partnerships with Deutsche Telekom, Vodafone, SoftBank and NTT Docomo underline Nokia’s global reach. Risks remain from volatile AI spending cycles and heavy investment plans, yet Nokia is firmly repositioning itself as a core AI infrastructure supplier.
