Nvidia’s strategic move sparks a 23% surge in Nokia shares as both tech giants deepen ties in the AI era
Helsinki, October 28, 2025 — Nokia stock skyrocketed on Tuesday after Nvidia announced a $1 billion investment in the Finnish telecom and technology company, marking a major strategic alliance aimed at expanding global AI infrastructure. The deal sent Nokia shares up nearly 23%, while Nvidia stock also closed at a record high.
Nvidia Bets Big on Nokia
According to Investopedia, Nvidia (NVDA) will purchase approximately 166.4 million new Nokia shares at $6.01 each, representing a 2.9% stake in the company. The move is part of Nvidia’s broader effort to strengthen its position in the rapidly expanding AI data center and connectivity ecosystem.
Nokia (NOK) said the investment proceeds will be used to accelerate its strategy in “trusted connectivity for the AI supercycle,” a market increasingly driven by high-performance computing, cloud networking, and artificial intelligence integration.
“This partnership is a powerful validation of our long-term vision,” a Nokia spokesperson said. “AI-driven connectivity will redefine how networks are built and optimized, and this collaboration positions us at the forefront of that transformation.”
Nokia Stock Price Surges on Market Optimism
The market reacted swiftly to Nvidia’s announcement, with Nokia stock gaining nearly three-quarters of its total value so far in 2025. The rally reflects investor confidence in Nokia’s strategic pivot toward AI-enabled telecommunications and infrastructure solutions.
At Tuesday’s close, Nokia shares were trading near a one-year high, while Nvidia stock climbed 5%, boosted by CEO Jensen Huang’s keynote at the company’s developers conference in Washington, D.C.
The event featured several announcements, including Nvidia’s collaboration with Nokia, which analysts describe as part of the chipmaker’s “AI infrastructure expansion wave.”
Strengthening AI and Connectivity Synergies
The partnership aligns closely with Nvidia’s long-term strategy of building an interconnected AI ecosystem. The company has made similar equity investments in firms such as CoreWeave and Arm Holdings, both critical players in AI cloud computing and chip design.
With AI chip demand surging globally, Nvidia is now focusing on telecom-grade connectivity — a space where Nokia’s expertise in 5G networks and data center infrastructure could play a crucial role.
“This is a logical extension of Nvidia’s AI infrastructure push,” said Carla Mendez, a senior tech analyst at MarketWatch. “Nokia provides the networking backbone that AI data centers need, and Nvidia brings the processing power. Together, they create a powerful end-to-end solution.”
Nvidia’s Growing Portfolio of AI Investments
Nvidia’s decision to invest in Nokia follows its aggressive expansion into strategic AI partnerships over the past year. The company holds:
- A 7% stake in CoreWeave, an AI cloud provider,
- A significant investment in Arm (ARM), the chip designer, and
- A newly announced collaboration with Nokia (NOK) in the telecom sector.
CoreWeave’s stock has tripled since its IPO in March, and Arm shares have climbed nearly 50% in 2025, mirroring the market’s excitement over the AI boom.
Analysts expect Nokia’s stock price to continue trending upward as the company gains exposure to Nvidia’s vast AI ecosystem and access to new enterprise clients in cloud and data infrastructure.
Nokia’s AI Transformation
Once known primarily for its mobile phones, Nokia has spent the past decade reinventing itself as a global leader in network technology, 5G infrastructure, and AI-enabled telecom systems.
This latest partnership with Nvidia underscores that transformation. The Finnish company now positions itself not just as a hardware supplier, but as a connectivity innovator powering the AI revolution.
Nokia CEO Pekka Lundmark has repeatedly emphasized that the company’s future lies in AI-enhanced networking, automation, and intelligent edge systems — areas that Nvidia’s investment directly supports.
Market Outlook
With Nvidia’s backing, Nokia stock could see continued upside momentum in the coming quarters. Analysts forecast the stock to potentially cross $7.50 per share if the partnership yields measurable results in network AI integration and data center adoption.
The alliance also sends a strong signal to the broader market: AI infrastructure isn’t just about chips — it’s about networks, speed, and scalability.
“Nvidia’s investment in Nokia bridges two crucial parts of the AI economy,” said Mendez. “Processing and connectivity must evolve together, and this partnership makes that happen.”
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