Nokia stock soared 17% in Helsinki trading on Tuesday after the Finnish telecom giant announced a $1 billion strategic investment from U.S. chipmaker NVIDIA, marking one of the most significant cross-industry partnerships in recent years. The deal establishes a deep collaboration in the development of AI-driven Radio Access Networks (AI-RAN) and next-generation connectivity infrastructure, cementing Nokia’s renewed presence in the global AI race. The announcement led to an immediate halt in Nokia’s American Depositary Receipts (ADRs) on the New York Stock Exchange as investors reacted to the news. The deal not only injects capital but also aligns Nokia with NVIDIA’s technological ecosystem, bridging telecom and AI innovation at a pivotal moment in both industries.
Under the terms of the agreement, NVIDIA (NASDAQ: NVDA) will acquire 166,389,351 new Nokia shares at a price of $6.01 per share, giving the California-based AI powerhouse a 2.9% equity stake in Nokia (HE: NOKIA). The $1 billion investment aims to fund Nokia’s accelerated roadmap toward AI-powered 5G and 6G network solutions. The newly issued shares will represent approximately 2.98% of Nokia’s pre-existing total shares. The transaction is expected to be completed in November 2025, pending registration with the Finnish Trade Register, after which the new shares will be admitted to trading on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange in the form of American Depositary Shares.
The collaboration will focus on developing AI-enabled RAN software that operates on NVIDIA’s architecture, as well as advancing data center networking and optical technologies. This partnership aims to position Nokia as a leading supplier of AI-driven telecom infrastructure, while NVIDIA gains a strong foothold in the networking layer of AI computing.
Nokia’s AI Supercycle and Network Evolution
Nokia said the investment will strengthen its strategic initiatives for what it calls the “AI supercycle,” a period of transformation where artificial intelligence is integrated across all digital infrastructure layers. The company plans to use the proceeds to expand its RAN software capabilities, develop AI-optimized network management tools, and enhance data center connectivity solutions that leverage NVIDIA’s GPU-based computing technologies.
In an official statement, Nokia emphasized its commitment to “trusted connectivity and performance leadership in the age of AI and cloud convergence.” The firm views this partnership as a crucial step toward integrating telecommunications with AI infrastructure, making future 6G and AI-RAN networks faster, more secure, and energy-efficient.
Industry Reactions and Expert Commentary
Nokia’s Board of Directors described the move as having a “weighty financial reason” to deviate from shareholders’ pre-emptive rights, underscoring the strategic significance of the deal.
A Nokia spokesperson commented:
“Our collaboration with NVIDIA brings unparalleled AI expertise to our telecommunications ecosystem. This investment ensures that Nokia remains at the forefront of 5G, 6G, and AI infrastructure innovation.”
Analysts at Investing.com noted that the partnership highlights NVIDIA’s long-term strategy of expanding its dominance beyond GPUs into AI networking and edge computing.
“By investing in Nokia, NVIDIA is signaling its intent to control not only AI computation but also the connectivity fabric that powers it,” analysts wrote.
Market observers from Reuters and Bloomberg added that the deal could challenge established telecom rivals Ericsson and Huawei, as Nokia gains access to NVIDIA’s advanced computing frameworks.
Market Impact and Financial Performance
The market responded instantly. Nokia stock jumped 17% in Helsinki, its biggest single-day gain in over five years, while NVIDIA shares rose 1.4% in New York pre-market trading.
Investors view the partnership as a dual opportunity — boosting Nokia’s AI capabilities while providing NVIDIA with a new growth channel in AI-driven networking. The move comes amid rising demand for AI-ready network infrastructure, particularly in data-heavy applications such as cloud services, robotics, and autonomous systems.
Financial experts predict that the collaboration could generate long-term revenue streams worth billions over the next decade, as the companies combine Nokia’s global network footprint with NVIDIA’s AI processing dominance.
Roadmap and Future Collaborations
Both companies confirmed plans to unveil joint AI-RAN prototypes and data center solutions in early 2026. These offerings are expected to target telecom operators, hyperscalers, and enterprise customers across Europe, North America, and Asia.
Nokia also intends to integrate its optical networking and data switching technologies into NVIDIA’s next-generation AI infrastructure, effectively creating a vertically integrated ecosystem for AI-powered communications. The strategic partnership will be formally ratified following Finnish Trade Register approval, after which the new shares will enter global trading in November 2025.
