- The Nokia Group (Finland) once started as a 19th-century pulp mill, then dominated the mobile market, and is now repositioning itself through AI and data center infrastructure. While rival Ericsson is not participating in this sector, Nokia is benefiting from the wave of data center construction serving AI.
- The telecom industry is in decline: according to Dell’Oro, capital expenditure (capex) of global carriers may decrease by 2% annually over the next 3 years. Ericsson’s revenue is only projected to increase slightly from €21.5 billion (2024) to €22 billion (2028).
- Nokia pivoted with the acquisition of Infinera for $2.3 billion, completed in early 2025, making the company a leading manufacturer of optical transport systems – the core of AI data center infrastructure.
- In Q3/2025, 6% of Nokia’s revenue came from hyperscalers (like Google, Microsoft, Amazon) – up from 5% the previous quarter. Although a small number, this is the fastest-growing customer segment in the industry.
- The Network Infrastructure division (including AI and optical equipment) is projected to surpass the mobile division, for the first time since 2017.
- Nokia’s revenue is forecast to increase from €19.5 billion (2024) to €21.5 billion (2028), with CEO Justin Hotard asserting that “Nokia’s biggest opportunity lies in hyperscalers and neocloud.”
- Nokia’s stock price has risen by 50% since July 2025, currently trading at 17 times expected 12-month earnings, nearly on par with Cisco (17.5 times) and higher than Ericsson (13 times).
- Ericsson focuses on cost reduction, but Nokia is highly rated by investors due to its “AI-native” direction – combining traditional telecom infrastructure with new AI and cloud computing technology.
📌 After years of stagnation, Nokia is “reborn” thanks to AI: the AI infrastructure segment accounts for 6% of revenue and will soon surpass traditional telecommunications. Nokia’s stock has risen 50% since July 2025, currently trading at 17 times expected 12-month earnings, nearly on par with Cisco (17.5 times) and higher than Ericsson (13 times). Nokia is seen as the “Cisco of Europe” — evidence that AI can save a once-failing telecom empire.
