Nokia Shares Rally on USD1B Nvidia Investment
(MENAFN) Finnish telecom equipment leader Nokia saw its stock jump to levels not seen in nearly a decade on Wednesday, following a $1 billion investment by U.S. chipmaker Nvidia for a 2.9-percent stake in the company. The deal marks the launch of a strategic partnership targeting artificial intelligence (AI), data centers, and next-generation 6G networks.
The announcement triggered a 20.9 percent surge in Nokia shares, climbing to €6.59 ($7.68) in early trading on the Helsinki exchange—the company’s biggest single-day gain since October 2000, when it revealed it had captured one-third of the global mobile phone market. The stock later closed at €6.27, its highest closing price since early 2016.
Under the deal disclosed late Tuesday, Nokia will issue 166.4 million new shares to Nvidia at $6.01 each, granting the American firm approximately a 2.9-percent stake in the Finnish company. The partnership will see Nokia’s data-center networking products integrated into Nvidia’s AI infrastructure, while both firms collaborate on AI-powered radio technologies for future mobile networks.
Nokia CEO Justin Hotard said the new technology “will first be deployed commercially in 5G systems and later extended to 6G, contributing to Nokia's revenues starting in 2027.”
Industry analysts said the collaboration could represent a major leap in blending AI with telecommunications, potentially reshaping the data center and mobile network sectors. Experts also emphasized that next-generation networks such as 6G will be critical in supporting new AI-driven applications and services.
(1 euro = 1.16 U.S. dollars)
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