Why Nokia Could Be A Safer Bet On AI Infrastructure After The NVIDIA Deal

Following a landmark deal with Nvidia, Nokia has emerged as a leading AI-infrastructure play. Nvidia invested $1 billion in October 2025 for roughly a 3% stake at $6.01 per share. The collaboration centers on AI-RAN, integrating AI operations with wireless networking, with T-Mobile onboard as the initial deployment partner. In Q1 2026, Nokia reported revenue of €4.5 billion, up 4% year over year, and operating profit of €281 million, with EPS of €0.05, beating forecasts. AI and cloud sales rose 49%, and Nokia secured €1 billion in new cloud orders, driven by optical networking gear for large data centers. Optical Networks grew 20%, and the company expects cloud-provider investment in AI infrastructure to exceed €700 billion. Nokia raised its full-year outlook: Network Infrastructure growth 12-14% and Optical/IP Networks 18-20%, with annual operating profit guidance of €2.0-€2.5 billion. In May, Nokia opened an AI Networking Innovation Lab in Sunnyvale, California, with AMD, Lenovo, Supermicro, and Keysight; the AI-RAN platform serves 10 public clients including Deutsche Telekom, Vodafone, SoftBank, and NTT Docomo.