Nokia has lined up partnerships with two of the world’s most valuable technology companies, tapping Alphabet and Nvidia to turbocharge its pivot from a traditional telecom equipment maker into a supplier of artificial intelligence infrastructure and defense communications.
The Finnish group is now developing six specialized AI agents with Google’s parent, built on the Gemini family of models. Designed to automate telecom network operations, these agents can detect faults 50 to 80 percent faster than human technicians, according to initial data. Nokia plans to launch the platform on the Google Cloud Marketplace in September, starting with router and triage programs. The endgame is networks that optimize and repair themselves with minimal human intervention.
The Nvidia tie-up, announced in late October last year, saw the chip giant invest $1 billion into Nokia. Together, the two are crafting new radio networks purpose-built for the data-intensive demands of AI workloads. The alliance marks a strategic deepening of Nokia’s relationship with the U.S. semiconductor leader and positions the company as a critical infrastructure provider for the global AI ecosystem.
That repositioning has already started to show up in the numbers. Nokia’s AI and cloud segment posted a 49 percent revenue jump in the first quarter, with new orders exceeding €1 billion. Demand is running ahead of supply, prompting the company to scale up its optical networking production. A second semiconductor fab in San Jose, California, is switching to larger 6-inch wafers, which will sharply boost output of transceiver chips from the end of this year. Meanwhile, the optical networks division grew by a fifth, fueled by orders from hyperscale data centres.
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Defense is the other pillar of Nokia’s reinvention. The company recently attended a NATO armaments forum at the alliance’s invitation, and its 5G technology is being tested by Ukrainian forces for secure battlefield communications. The aim is sovereign, tamper-proof networks—an area that could provide a buffer against the volatility of mainstream mobile equipment sales. Market watchers are looking to the upcoming NATO summit for potential procurement contracts.
Investors have rewarded the broad strategy handsomely. Nokia shares have more than doubled since the start of the year, though they have cooled from the June peak. The stock recently traded at €11.14, roughly 25 percent below that high, and has dipped as low as €10.91 in recent sessions as some profit-taking sets in. The pullback has left the shares hovering just beneath their 50-day moving average.
The next big test comes on July 23, 2026, when Nokia reports second-quarter earnings. Management has set a full-year operating profit target of as much as €2.5 billion. The incoming numbers will reveal whether the contract momentum from the Nvidia deal and the Alphabet collaboration is accelerating, and whether the AI focus is driving margins higher in the network divisions.
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