Nvidia’s Surprise $1 Billion Investment in Nokia Shakes Global Stock Markets
Nokia shares surge 22% as Nvidia expands AI and networking influence
In a move that stunned financial markets, Nvidia has acquired a $1 billion stake in Nokia, the Finnish telecom equipment giant confirmed on Tuesday. The announcement triggered a sharp rally in Nokia’s shares, which soared 22% in Wednesday’s trading — their biggest one-day gain in nearly a decade.
Under the agreement, Nokia will issue over 166 million new shares to Nvidia. The proceeds from the deal will be used to accelerate Nokia’s artificial intelligence initiatives and strengthen its next-generation networking infrastructure, the company said in a statement.
“This investment underscores our shared vision of combining connectivity and AI to power the next era of digital transformation,” Nokia CEO Pekka Lundmark said.
Nvidia strengthens foothold in AI-powered communications
The investment marks Nvidia’s latest move to extend its influence beyond computing and data centers into the telecom and connectivity sector — a space increasingly driven by AI and edge computing technologies.
Industry analysts say the partnership could see Nvidia’s AI computing platforms integrated into Nokia’s 5G and 6G network infrastructure, enabling faster and more intelligent data processing across global telecom networks.
“Nvidia’s stake in Nokia signals a long-term bet on AI-driven network evolution,” said Mark Dyson, senior analyst at Bloomberg Intelligence. “It could reshape how telecom equipment is built, optimized, and managed in the AI era.”
Strategic boost for Nokia’s global ambitions
The billion-dollar deal arrives at a critical time for Nokia, which has faced stiff competition from Ericsson and Huawei in global 5G deployment. The partnership with Nvidia could give the Finnish firm a technological edge as telecom networks evolve toward AI-enhanced automation and self-healing capabilities.
The collaboration will also align with Nvidia’s broader ecosystem strategy, linking its dominance in AI chips with next-generation connectivity — a key enabler for smart cities, autonomous systems, and edge computing.
Stock market reaction and future outlook
Following the announcement, Nokia’s stock jumped 22% on the Helsinki exchange, while Nvidia’s shares rose 3% in early U.S. trading, reflecting investor optimism over the AI–telecom convergence.
Market experts believe the deal could pave the way for joint AI research, co-developed hardware systems, and expanded data infrastructure collaborations between the two companies.
“AI isn’t just transforming software — it’s beginning to rewire the physical backbone of the internet,” said Dyson. “This Nvidia–Nokia partnership is an early sign of that shift.”
