Nokia Shares Surge 22% on $1B Nvidia Partnership as Trading Volume Ranked 24th

Market Snapshot

Nokia (NOK) surged 22.17% on October 28, 2025, with a trading volume of $2.88 billion, ranking 24th in dollar volume across U.S. equities. The stock’s price action marked its steepest one-day gain in nearly a decade, closing at $8.11, a jump from its previous close. The surge followed a major announcement of a $1 billion equity investment by Nvidia (NVDA), which acquired a 2.9% stake in Nokia through a directed share issuance. The transaction, involving 166.4 million new shares at $6.01 apiece, underscored a strategic alignment between the two companies to advance AI-powered 5G/6G network infrastructure.

Strategic Partnership and AI Integration

The partnership between Nokia and Nvidia represents a pivotal shift in Nokia’s business model, repositioning the company from a traditional telecom equipment provider to a key player in AI-driven infrastructure. By integrating Nvidia’s AI chips into Nokia’s 5G and 6G software architecture, the collaboration aims to accelerate the development of AI-Radio Access Networks (AI-RAN), which embed AI capabilities directly into network hardware. This move positions Nokia to capitalize on the growing demand for real-time data processing and edge computing, critical components of next-generation telecommunications. Nvidia’s involvement also grants access to Nokia’s data center switching and optical technologies, which the chipmaker plans to incorporate into its AI infrastructure, creating a bidirectional value chain.

The investment reflects a broader industry trend of tech giants consolidating control over AI ecosystems. Nvidia, which has recently committed significant capital to companies like Intel, OpenAI, and Wayve, is expanding its influence across semiconductor, cloud, and connectivity sectors. For Nokia, the partnership validates its strategic pivot under CEO Justin Hotard, who has prioritized AI infrastructure since leading the company’s acquisition of Infinera Corp. for $2.3 billion in 2024. This expansion into data centers has already yielded results: Nokia reported 9% year-over-year revenue growth in Q3 2025, with all business segments contributing to the improvement. The company’s Optical Networks division, which supplies components for AI data centers, saw a 19% year-over-year increase, driven by hyperscale demand.

Nokia’s recent financial performance further supports its transformation. Despite a 53.8% decline in net income to €78 million in Q3 2025, the company maintained a strong liquidity position with €3 billion in net cash and free cash flow of €429 million. These figures highlight Nokia’s ability to reinvest in R&D and strategic acquisitions while maintaining financial flexibility. The partnership with Nvidia, combined with Nokia’s 23% revenue growth in the Asia-Pacific region and 13% increase in North America, signals a broader diversification strategy that reduces reliance on traditional telecom carriers. Collaborations with companies like Super Micro Computer (SMCI) and Nscale have further embedded Nokia into the AI data pipeline, enhancing its role in global AI infrastructure.

The market reaction to the partnership underscores investor confidence in Nokia’s AI-driven growth trajectory. The stock’s 22.17% surge on October 28—its highest volume in years—reflects a revaluation of the company’s potential in the AI supercycle. Analysts note that the deal aligns with macroeconomic tailwinds, including Federal Reserve rate cuts and increased AI capital expenditure cycles, which are driving telecom infrastructure investments. Nokia’s strategic position as a Western alternative to Huawei in 5G/6G networks also strengthens its appeal in a geopolitical landscape prioritizing AI sovereignty. With the collaboration extending into 6G development, including pre-standard trials with institutions like Germany’s Fraunhofer Heinrich Hertz Institute, Nokia is poised to lead in the next frontier of telecommunications, further solidifying its partnership with Nvidia.