Nokia Corporation (NYSE:NOK) jumped Tuesday after Nvidia Corporation (NASDAQ:NVDA) agreed to invest $1 billion for a 2.9% stake and partner on AI networking.
The move brings fresh capital to Nokia and deepens cooperation between the firms in artificial intelligence and high-performance connectivity.
Nokia said the funds will support its broader strategy and strengthen its product roadmap for the coming “AI supercycle.”
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The announcement also landed as megacap tech kept building momentum.
Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) both climbed Tuesday, pushing each above a $4 trillion market value. NVIDIA remained the world’s most valuable company at more than $4.6 trillion, per a CNBC report.
Deal Structure
Nokia’s board approved the issue of more than 166 million new shares. Nvidia will pay $6.01 per share, subject to standard closing conditions.
After the settlement, Nvidia will hold roughly 2.9% of Nokia’s stock. The newly issued shares are expected to begin trading in Helsinki, Paris and New York once regulatory steps are complete.
AI-RAN Collaboration
The partnership also arrives alongside the launch of Nvidia Arc Aerial RAN Computer, a 6G-ready platform built for next-generation telecom workloads.
Nokia plans to add a new AI-RAN product to its global access portfolio based on Nvidia’s platform.
T-Mobile US, Inc. (NASDAQ:TMUS) is working with both companies to integrate AI-RAN into its 6G development program, opening the door to smarter network automation and enhanced customer experiences.
Dell Technologies Inc. (NYSE:DELL) will supply PowerEdge servers to power the joint AI-RAN offering.
Industry executives say the collaboration marks a shift toward AI-native 6G by pushing AI-RAN into real-world commercialization at global scale.
Strategic Focus
Nokia expects faster development of 5G and 6G radio software on Nvidia architecture.
The companies also plan to explore joint work in switching and optical gear for future AI data centers.
Financial Mechanics
Nvidia’s payment will go into Nokia’s reserve for invested unrestricted equity. Nokia said independent legal and financial reviews supported the subscription terms and justified issuing shares without preemptive rights.
Jefferies analyst Janardan Menon upgraded NOK from Hold to Buy. According to Benzinga Pro, NOK stock has gained over 49% in the past year. Investors can gain exposure to the stock via iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:IDGT).
Price Action: NOK shares were trading higher by 24.82% to $7.939 at last check Tuesday.
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