The endless stream of AI headlines continues…
Just ahead of the lunch hour in New York, Bloomberg reported that Nvidia will invest $1 billion in Nokia, acquiring a 2.9% stake by purchasing 166 million shares at $6.01 each. The headline was enough to catapult Nokia’s shares in Europe up 17%. U.S.-listed shares were briefly halted, now up 21%.
Under the new partnership, Nvidia’s AI chips will power Nokia’s AI-accelerated 5G and 6G software and will explore integrating Nokia’s data center technologies into Nvidia’s own infrastructure. The deal transforms Nokia into the only Western full-stack alternative to Huawei in the telecommunications grid.
CEO Justin Hotard has led Nokia’s impressive turnaround. He recently acquired Infinera for $2.3 billion to expand into AI networking hardware. For Nvidia, this partnership adds to the ever-expanding list of AI investments, which includes OpenAI, Wayve, Oxa, Revolut, PolyAI, and a billion-euro data center project with Deutsche Telekom.
U.S.-listed Nokia shares jumped as much as 21%.
The 21% move higher is the largest intraday gain in U.S.-listed Nokia shares since January 2021.
What happened to Nokia? Thought it was dead. Everyone who was around in the 1990s and early 2000s who had a Nokia handset remembers this…
Now, Nokia is being positioned to become the “Huawei of the West.” What a dramatic turnaround.
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