Nokia shares surged 18% on Tuesday after Nvidia announced a $1 billion equity investment in the Finnish networking giant. The deal marks a significant step in strengthening Nokia’s position in the AI-driven telecommunications space. Nokia confirmed that it will issue around 166 million new shares to facilitate the partnership and fund forthcoming projects.
The collaboration aims to blend Nvidia’s cutting-edge artificial intelligence expertise with Nokia’s stronghold in network solutions. Both companies plan to jointly develop next-generation 6G technology, leveraging AI to enhance network efficiency, speed, and reliability. This strategic alliance highlights the growing convergence of AI chips and communication infrastructure on a global scale.
According to Nokia, proceeds from the Nvidia stake will support continued innovation in 5G and 6G research. The company intends to optimize its existing software infrastructure to operate seamlessly on Nvidia’s chips, ensuring better integration between AI systems and telecommunication hardware. This approach could redefine data processing in advanced network setups.
Nvidia’s investment also positions it as a key enabler in the evolution of future AI-powered connectivity. The tech firm sees potential in embedding Nokia’s solutions within its own AI platforms, offering broader applications for edge computing and enterprise networking. Market analysts believe this partnership could accelerate the rollout of smart city and industrial IoT networks worldwide.
Industry experts suggest that the partnership between Nokia and Nvidia could reshape the global telecom landscape. With both firms combining strengths in AI and network architecture, they are likely to lead upcoming innovations in 6G deployment. Investors responded positively to the announcement, reflecting strong confidence in Nokia’s renewed technology strategy and long-term growth prospects.
$NVDA is investing $1 Billion in Nokia $NOK, taking a 2.9% stake at $6.01 per share through a directed share issuance.
— Wall St Engine (@wallstengine) October 28, 2025
The deal includes a strategic partnership: Nokia will develop 5G/6G RAN software on NVIDIA’s AI architecture and expand data center networking solutions.… pic.twitter.com/8FwOklcFOX
