Nokia's AI Data Center Boom Lifts Stock to 16-Year High
Nokia beat first-quarter profit expectations and raised its growth forecasts for AI and cloud infrastructure, sending its shares to their highest price since 2010. The Finnish network equipment maker reported comparable operating profit of 281 million euros, up 54% from the prior year and above the 250 million euro analyst consensus.
The stock rose nearly 7% in early trading Thursday, reaching levels not seen since Nokia's phone-making days. The rally reflects a sharp shift in the company's business: it now manufactures optical transport systems for data center operators, a market fueled by demand for AI infrastructure.
The AI Infrastructure Opportunity
Nokia's AI and cloud sales climbed 49% in the quarter, with the company booking 1 billion euros in new orders from hyperscalers-the large cloud service providers building data centers. These customers depend heavily on fiber optic cables to move data between servers and facilities.
The company acquired U.S.-based Infinera to strengthen its optical networking position. That deal positioned Nokia as one of the world's top manufacturers of the equipment these companies need.
Raising the Bar on Growth
Nokia upgraded its outlook for the AI and cloud addressable market, now expecting 27% annual growth from 2025 to 2028. That's up from a 16% forecast made just five months earlier in November.
The company also raised guidance for its network infrastructure segment, expecting sales growth of 12% to 14% this year compared with a prior forecast of 6% to 8%. CEO Justin Hotard said Nokia is tracking above the midpoint of its full-year operating profit target of 2.0 billion to 2.5 billion euros.
For sales professionals, this signals where enterprise spending is concentrating: companies building AI infrastructure are buying aggressively, and vendors with the right technical solutions are capturing significant market share. Understanding this shift helps teams identify which customer segments are most likely to invest and expand their budgets.
Learn how AI is reshaping sales strategy or explore the AI Learning Path for Sales Representatives to understand these emerging market opportunities.
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