Nokia Shares Surge as Nvidia Becomes Second-Largest Shareholder
Nvidia is investing $1 billion to acquire a 2.9% stake in Nokia, marking a strategic partnership aimed at advancing AI-driven networking and data center technologies. The deal, announced by Nokia, comes as the Finnish telecom giant’s shares surged nearly 21%, reaching their highest level since 2016. The collaboration will focus on integrating Nokia’s data center communication products into Nvidia’s AI infrastructure roadmap, with commercial deployment expected to begin in 2027, starting with 5G and evolving into 6G.
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💼 Investment Details Table
| Detail | Information |
|---|---|
| Investor | Nvidia |
| Investment Amount | $1 billion |
| Equity Stake Acquired | 2.9% |
| Share Price | $6.01 per share |
| New Shares Issued by Nokia | 166,389,351 |
| Nvidia’s Shareholder Rank | Second-largest in Nokia |
| Focus Areas | AI networking, data centers, 5G, 6G |
| Commercial Deployment Timeline | Begins in 2027 |
| Partner Companies | T-Mobile U.S., Marvell, Ericsson |
The partnership positions Nvidia as Nokia’s second-largest shareholder and underscores a broader push to make the U.S. a leader in next-generation telecom technologies. Nvidia CEO Jensen Huang praised the deal as a step toward reclaiming American leadership in telecommunications, while Nokia CEO Justin Hotard emphasized the synergy between Nvidia’s accelerated computing stack and Nokia’s mobile infrastructure. Analysts view the move as a strong endorsement of Nokia’s capabilities in the AI and 6G space.
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Nokia-Nvidia Deal Targets AI Data Centers and Next-Gen 6G Networks
Beyond the equity investment, the companies will also collaborate with T-Mobile U.S. to develop AI-powered radio technologies for 6G, with trials set to begin next year. The global data center market is projected to exceed $1.7 trillion by 2030, driven largely by AI expansion. Nokia’s pivot toward data centers and AI under Hotard’s leadership reflects a strategic shift to capitalize on this growth, with the company also continuing to use Marvell chips and compete with rivals like Ericsson in the connectivity space. source: Reuters
