Shares of Nokia Corporation (NYSE: NOK) soared more than 20% on Tuesday after the Finnish telecom giant announced a landmark $1 billion strategic investment and AI partnership with Nvidia Corporation (NASDAQ: NVDA). The move marks one of Nokia's strongest single-day rallies this year, fueled by heavy trading volume and investor enthusiasm for its pivot toward artificial intelligence–driven network infrastructure.
Stock Performance
As of 3:52 p.m. UTC, Nokia's stock was trading at $7.67, up $1.31 or 20.6% from the previous close. The shares opened at $6.42, climbed to an intraday high of $7.73, and saw over 72 million shares traded — far exceeding the stock's average daily volume.
The rally pushed Nokia well above its recent trading range and beyond most analyst price targets, which have hovered between $5.40 and $6.30. Over the past 52 weeks, the stock has traded between $3.91 and $5.48, according to data from CNBC.
Nvidia announced it will invest $1 billion in Nokia, acquiring roughly 2.9% of the company through the issuance of 166.4 million new shares, according to the Financial Times.
Under the agreement, Nokia and Nvidia will deepen collaboration to integrate AI-powered technologies into telecommunications infrastructure, including AI-enabled Radio Access Networks (AI-RAN), cloud networking, and data-center switching.
The partnership builds on an earlier 2024 collaboration between the two companies focused on cloud-RAN and machine-learning-driven network optimization. Nvidia's involvement signals strong confidence in Nokia's ongoing transformation from a traditional telecom equipment provider to a key player in AI-driven 5G and 6G infrastructure.
"This partnership represents a new era for telecom networks," said Pekka Lundmark, Nokia's President and CEO. "By combining Nokia's leadership in network technology with Nvidia's AI capabilities, we're laying the foundation for the next generation of intelligent, energy-efficient networks."
Analysts widely view Nvidia's investment as a vote of confidence in Nokia's turnaround strategy. The deal also positions Nokia to compete more effectively in the fast-growing market for AI-driven cloud infrastructure — an area increasingly critical for global 5G and data-center expansion.
"A $1 billion stake from Nvidia changes the game," said one European telecom analyst. "It not only validates Nokia's technology roadmap but also injects capital and credibility into its shift toward AI and data-center applications."
In addition to the Nvidia partnership, Nokia recently completed its $2.3 billion acquisition of Infinera Corporation, expanding its footprint in optical networking and data-center connectivity — both vital components of AI infrastructure.
The Nvidia deal has re-energized investor sentiment, but analysts caution that Nokia's shares could experience short-term volatility following such a sharp rally. Market participants will be watching closely to see how Nokia deploys the new capital, integrates Nvidia's technologies, and executes on its AI-RAN strategy.
At press time, Nokia shares remained up more than 20%, outpacing both the S&P 500 and the broader technology sector.
