Nokia shares hit 16-year highs on AI-fuelled momentum
Updated
Updated · The Motley Fool · May 10
Nokia shares hit 16-year highs on AI-fuelled momentum
12 articles · Updated · The Motley Fool · May 10
The stock climbed near $13 after Nvidia's $1 billion October investment at $6.01 a share and strong first-quarter results highlighting AI progress and cloud growth.
Nokia and Nvidia are integrating GPU-powered AI into radio access networks to improve spectrum use, cut energy consumption and support 5G-Advanced and future 6G services.
The former handset leader, which sold its mobile division to Microsoft in 2014, is recasting itself as AI infrastructure play, though revenue gains may take years and execution risks remain.
Is Nokia's billion-dollar AI bet a true network revolution or just vendor-driven hype?
As base stations become AI brains, will the benefits outweigh the massive costs and energy demands?
Nokia’s AI Gambit Pays Off: Record Q1 2026 Profits and 16-Year Stock High Signal New Era in Telecom
Overview
In the first quarter of 2026, Nokia delivered a robust financial performance, significantly exceeding market expectations. This success was largely driven by soaring demand from the artificial intelligence (AI) boom, which notably boosted the company’s sales. Nokia’s strategic focus on AI, described as its 'AI Gambit,' proved highly effective, helping the company secure €1 billion in orders from hyperscalers. Combined with operational efficiency, these moves led to a remarkable 54% jump in profit. Nokia’s proactive approach to AI and strong ecosystem partnerships underpinned its strategic direction, fueling both financial gains and positive market reaction.