Finnish telecom equipment giant Nokia saw its share price surge to a near-decade high on Wednesday after U.S. chipmaker Nvidia announced a one-billion-U.S.-dollar investment for a 2.9-percent stake in the company, reported Xinhua.
The deal marks the start of a new partnership focused on artificial intelligence (AI), data centers, and future 6G networks.
The announcement sent Nokia shares soaring 20.9 percent to 6.59 euros (7.68 U.S. dollars) in early trading on the Helsinki exchange – the company's sharpest one-day rise since October 2000, when it announced it had captured one-third of the global mobile phone market. The stock later closed at 6.27 euros, its highest level since early 2016.
Under the agreement announced late Tuesday, Nokia will issue 166.4 million new shares to Nvidia at 6.01 U.S. dollars each, giving the American firm roughly a 2.9-percent stake in the Finnish company.
The partnership will integrate Nokia's data-center networking products into Nvidia's AI infrastructure and jointly develop AI-powered radio technologies for next-generation mobile networks.
Nokia CEO Justin Hotard said the new technology will first be deployed commercially in 5G systems and later extended to 6G, contributing to Nokia's revenues starting in 2027.
Industry analysts said the agreement could mark a major step in merging AI and telecommunications, with the potential to reshape both the data center and mobile network markets. They noted that next-generation networks such as 6G will play a pivotal role in enabling new AI-driven applications and services.
- Nokia
- Shares
- Nvidia
- Investment
Source: www.dailyfinland.fi
