Key Stats for Nokia Stock
- Price Change for Nokia stock: 22%
- Current Share Price as of Oct. 28: $7.77
- 52-Week High: $8.19
- $NOK Stock Price Target: $6.47
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What Happened?
Nokia (NOK) stock jumped 22% on Tuesday after Nvidia announced it’s investing $1 billion in the Finnish networking company. The deal makes Nvidia one of Nokia’s largest shareholders and comes with a strategic partnership to develop next-generation wireless technology.
Nvidia will buy more than 166 million new Nokia shares at $6.01 per share, and Nokia plans to use the proceeds to fund AI initiatives and general business needs.
Nokia and Nvidia struck a partnership to develop 6G cellular technology and AI-powered wireless networks. Nokia will adapt its 5G and 6G software to run on Nvidia’s chips. The companies will also work together on networking technology specifically designed for AI applications.
Nvidia said it would consider using Nokia’s technology in its future AI infrastructure plans. That’s a big vote of confidence from the world’s most valuable chip company, which has become the center of the AI revolution.
The announcement came just as Nvidia CEO Jensen Huang prepared to speak at the company’s developer conference in Washington, D.C.
This isn’t Nvidia’s first strategic investment, as the chip giant has been eyeing equity stakes in key partners as it expands beyond just making GPUs.
In September, Nvidia invested $5 billion in Intel and committed $100 billion to OpenAI. It also invested $500 million in self-driving startup Wayve and $667 million in U.K. cloud provider Nscale.
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What the Market Is Telling Us About Nokia Stock
The 22% surge in Nokia stock shows investors believe this partnership could transform the company. Nokia has been trying to reinvent itself for years, and the Nvidia deal validates that strategy in a big way.
Nokia is no longer the cellphone company most people remember. Today, it’s a major supplier of 5G equipment to telecom providers worldwide. The company builds the infrastructure that powers wireless networks, competing with players like Ericsson and Huawei.
The problem has been that traditional telecom equipment is a tough, low-margin business. Growth has been slow, and Nokia has struggled to excite investors. The Nvidia partnership changes the game by positioning Nokia at the center of AI-powered wireless networks —a market that could be massive.
Analysts at Omdia estimate the AI-RAN market will exceed $200 billion by 2030. AI-RAN stands for AI Radio Access Network, a wireless infrastructure that leverages artificial intelligence to improve performance and efficiency.
For Nokia stock, the timing couldn’t be better as it gets a billion-dollar cash injection from one of the most valuable tech companies in the world. The investment will help Nokia accelerate its AI plans without having to borrow or issue shares at unfavorable prices.
The partnership also addresses a real problem in wireless networks. AI traffic is exploding, and nearly 50% of ChatGPT’s 800 million weekly users access it through mobile devices.
Monthly mobile app downloads for ChatGPT alone exceed 40 million. All that AI activity needs better, smarter wireless infrastructure to handle the load.
Nokia and Nvidia are building systems that can process AI workloads right at the network edge—meaning at cell towers and base stations rather than sending everything back to distant data centers. This reduces delays and improves performance for users running AI applications on their phones.
T-Mobile has already signed on as the first customer. The carrier will work with Nokia and Nvidia to test AI-RAN technologies starting in 2026, a significant endorsement from one of America’s largest wireless providers that shows there’s real commercial interest in what these companies are building.
Dell Technologies is also part of the mix, providing servers that will power Nokia’s AI-RAN solution. The collaboration brings together three major tech players—Nvidia’s chips, Nokia’s wireless software, and Dell’s infrastructure—to create a complete system.
Jensen Huang, Nvidia’s CEO, called telecommunications “a critical national infrastructure” and said AI-RAN will “revolutionize telecommunications.” The U.S. government wants American companies to lead in wireless technology, especially as competition with China intensifies.
Nokia, despite being Finnish, operates globally and counts U.S. carriers as major customers. For Nokia stock, this partnership addresses several concerns investors have had.
First, it gives Nokia a clear path to participate in the AI boom, which has been driving stock market returns for the past three years. Second, it connects Nokia to Nvidia, which means Nokia’s technology will get exposure to Nvidia’s massive ecosystem of AI developers and customers.
Third, it opens up new revenue opportunities beyond traditional telecom equipment. Nokia will be able to sell AI-enhanced products with potentially higher margins. And by working with Nvidia, Nokia gains access to cutting-edge chip technology, making its products more competitive.
The billion-dollar investment also strengthens Nokia’s balance sheet at a time when the company is investing heavily in R&D for 6G technology. Having a well-funded partner like Nvidia backing those efforts reduces financial pressure and gives Nokia more flexibility to innovate.
That said, investors should remember that 6G is still years away from commercial deployment. The technology won’t generate significant revenue until the late 2020s at the earliest. Nokia and Nvidia are playing the long game here, betting on what wireless networks will look like five to ten years from now.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
