Nokia Emerges as Practical AI Infrastructure Choice

SpaceX raised $75 billion in its initial public offering and gained 19% in its Nasdaq debut, with the stock reaching a session high that pushed the company’s market capitalization toward roughly $2.21 trillion.

Nokia reported quarterly results showing AI and cloud net sales rose 49% year over year. The company disclosed roughly €1 billion in orders from AI and cloud customers and raised its full-year growth expectations for the network infrastructure segment, citing stronger demand for optical networks and IP routing.

Nokia operates across four business segments: mobile networks, network infrastructure, cloud and network services, and Nokia tech. The company sells equipment to carriers, hyperscalers and data center operators in more than 100 countries. The brand licensing operation for phones is a small part of current revenue.

Bank of America Securities has described Nokia as a key player in data center interconnect and optical transport rather than a traditional mobile gear vendor.

Nvidia made a direct equity investment in Nokia in late 2025 at $6.01 per share. The two companies are collaborating on AI-powered radio access network technology intended to support future wireless generations and increased AI-driven traffic. Nokia opened an AI Networking Innovation Lab in Sunnyvale in May to co-develop next-generation networks for AI data centers with cloud and AI partners.

Nokia projects global network traffic could grow roughly fivefold from 2024 levels through 2034, and management has highlighted that AI workloads will make up a disproportionate share of that increase. Company management pointed to optical transport and IP networks as segments positioned to support expanded capacity for AI processing by cloud operators.

On a financial basis, Nokia reported about $19.22 billion in annual revenue and trades with a market capitalization near $82 billion. Some analysts note the stock trades at a discount to sales, and several brokerages currently rate the shares overweight on average.

On the trading session when SpaceX held headlines, Nokia shares outperformed the broader technology equipment sector.

SpaceX’s IPO carried a market valuation near $2 trillion at its high. Nokia’s recent orders, sales growth in AI and cloud, and an equity stake from Nvidia relate directly to optical transport, IP routing and wireless-network work for data centers and carriers.