From Handsets to Hyperscalers: How Nokia Is Rewiring Its Future Around AI -( $NOK $NVDA )

Nokia’s (NOK) latest press run reads like a company determined to reinvent itself as the quiet power behind the AI and 6G boom—while making sure Wall Street notices the transformation. The last several releases sketch out a telecom veteran recasting its balance sheet, its strategy, and even its cap table to ride the “AI supercycle” rather than be run over by it.

The new AI-first Nokia

Nokia’s November strategy announcement effectively rewrites the company’s playbook, positioning it as an infrastructure arms dealer to the AI era rather than a cyclical base-station vendor. Management laid out a plan to simplify into two primary operating segments—Network Infrastructure and Mobile Infrastructure—aimed at capturing data center build‑out, AI networking demand, and the long march to 6G.

The company also set an ambitious new long‑term profit target, aiming to lift comparable operating profit to a 2.7–3.2 billion euro range by 2028, up from about 2.0 billion euros over the prior 12 months, which puts a concrete yardstick under all the AI rhetoric. Investors also received a fresh set of strategic KPIs, including mid‑single to high‑single‑digit net sales growth for Network Infrastructure and higher margin targets, signaling that Nokia wants to be judged less like a low‑margin hardware vendor and more like an efficiency‑obsessed infrastructure platform.

NVIDIA muscles onto the cap table

In late October, Nokia added some Silicon Valley gloss by striking a strategic partnership with NVIDIA (NVDA) that comes with a 1.0 billion dollar equity investment. The deal pairs Nokia’s optical and data center switching technologies with NVIDIA’s AI infrastructure ambitions, giving the Finnish company both a marquee customer and a powerful ally in the race to move AI traffic at scale.

That relationship quickly turned tangible in November, when Nokia completed a directed share issuance to NVIDIA, increasing its total share count as the new stock prepared to list on Nasdaq Helsinki. For existing shareholders, the message was clear: some dilution now in exchange for a deeper role in NVIDIA’s future AI architectures, and—if management executes—the prospect of sharing in that growth rather than watching it from the sidelines.

Capital markets day, with numbers attached

The same strategy release doubled as a preview of Nokia’s Capital Markets Day, where management framed the shift around an “AI supercycle” that will reshape networks over the rest of the decade. Nokia highlighted Network Infrastructure as a growth engine, targeting 6–8% annual net sales growth from 2025 to 2028 and double‑digit growth for its optical and IP units, effectively arguing that fiber and routing are the new picks and shovels of AI.

On the cost side, the company pledged to slim down Group Common and Other operating expenses by roughly 200 million euros by 2028, a reminder that the AI story still comes with an old‑fashioned European restructuring. Leadership changes around the new operating model—including a dedicated Chief Customer Officer and a rebranded Technology Standards role—signal that standards and partnerships are now as central to Nokia’s equity story as base‑station counts once were.

5G still pays the bills

Amid the AI fanfare, Nokia’s press flow continues to feature the bread‑and‑butter 5G deals that keep cash flowing while the strategy shifts. One recent headline deal showcased an “industry first” autonomous network slicing deployment with Middle Eastern operator du, an attempt to turn 5G from a marketing slogan into a programmable, revenue‑generating asset. Another highlighted work with KPN in the Netherlands to build an 800G‑ready core and transport network, a reminder that hyperscalers are not the only ones hungry for bandwidth.

These contracts may not move the stock on their own, but they serve a useful narrative purpose: they show that operators are still writing checks for high‑performance networks, and that Nokia is selling more software‑driven, automation‑heavy solutions rather than merely boxes with antennas. In a market where investors have heard a decade of 5G promises, the company is now trying to show that the standard can be sliced, automated, and monetized in ways that look suspiciously like cloud economics.

From turnaround to test case

The most recent Nokia storyline, then, is less about survival and more about whether an old‑line telecom supplier can graduate into a core enabler of AI infrastructure without losing its cost discipline. With a fresh operating model, tighter financial targets, and a Silicon Valley heavyweight on the shareholder register, the company has given investors several new ways to measure progress—and excuses will be harder to come by if the numbers miss.

For now, Nokia looks like a case study in late‑career reinvention: a former handset icon that sold its phones, hunkered down in networks, and is now trying to become indispensable to the world’s AI data plumbing. If the AI supercycle delivers as promised, the company’s recent press releases may be remembered as the moment when a once‑familiar brand quietly re‑entered the growth conversation—this time from the server room instead of the store shelf.

The new AI-first Nokia

NVIDIA muscles onto the cap table

Capital markets day, with numbers attached

5G still pays the bills

From turnaround to test case

The Sources

You May Also Like

“Is The Beaten Down Biotech Sector The Smartest Bet In Today’s Volatile Market?” – ( $SER $XBI $IBB $PFE )

Why Systematic Funds Could Dump $40 Billion in Equities: Goldman’s Market Alarm Bomb – ( $GS $SPY $QQQ $DIA )

Your Guide To Staying Informed In The Markets