Nokia's AI & Cloud revenue rises 123% after Nvidia backs AI-RAN partnership
Nokia (NOK) is shifting from its historic phone business to AI networking equipment, leveraging a $1 billion investment from Nvidia that gave the chipmaker a 2.9% stake. The two firms are developing AI‑radio access networks (AI‑RAN) that embed accelerated computing into telecom gear, aiming to bring edge AI capabilities to autonomous vehicles, robotics and industrial automation.
Key points
- Nokia's AI & Cloud revenue grew 123% YoY to €631 million in Q3
- Nvidia invested $1 billion in Nokia last year, taking a 2.9% stake
- Nokia secured about €1.5 billion in new AI‑related orders in the quarter
In the third quarter Nokia reported €5.2 billion in revenue, a 9% year‑over‑year increase on a constant‑currency basis, while operating profit rose 35% to €605 million and EPS jumped 50% to €0.09. The AI & Cloud division led the growth, with revenue up 123% to €631 million and order intake up 118%, securing roughly €1.5 billion in new orders. Analysts note that Nokia’s recent acquisition of Infinera expands its optical networking reach, positioning the company as a key supplier in the AI infrastructure supply chain that supports hyperscaler data‑center expansion.
The article argues that, at a roughly 2.6 price‑to‑sales ratio, Nokia could be an underappreciated play for investors betting on the long‑term demand for AI‑related networking and optical equipment.
The story so far
3 episodes →- Nokia's AI & Cloud revenue rises 123% after Nvidia backs AI-RAN partnershipthis story
Not Intel. Not CoreWeave. This Underappreciated Nvidia-Backed Company Is Growing Artificial Intelligence (AI) Revenue by 123%. Here's Why It's a Buy Today for $8.
fool.com · 22 October 2026
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