This Telecom Stock Could Be a Surprising Long-Term Winner as Artificial Intelligence Adoption Accelerates

• Nokia volition integrate immoderate of Nvidia's AI hardware into its cellular web infrastructure products.

• One expert expects the marketplace for this exertion to turn to $200 cardinal by 2030.

• 10 stocks we similar amended than Nokia ›

In today's tech world, Nokia (NYSE: NOK) attracts comparatively small attention. After the debut of Apple's iPhone and the ensuing modulation to smartphones wiped retired its cellular telephone business, the institution redefined itself arsenic a telecom hardware company. Because of that, it's acold little connected the minds of consumers -- and investors -- than it was erstwhile its handsets were ubiquitous.

However, a caller concern with Nvidia has reignited immoderate Wall Street involvement successful the stock. It's a woody that could enactment Nokia's determination into artificial quality (AI), foster a long-awaited recovery, and marque the banal a semipermanent winner.

Nokia's absorption connected telecom instrumentality turned it into a captious subordinate successful the communications industry, but much recently, it has pivoted again to grow into AI. It has been gathering partnerships with Verizon and Lockheed Martin, and successful aboriginal 2025, it purchased Infinera, an optical networking company, for $2.3 billion.

Nonetheless, it is the company's caller concern with Nvidia, which it announced successful October, that has helped renew involvement successful the stock. Under the presumption of the deal, Nokia volition make Nvidia-powered AI-RAN (radio entree network) technologies, expanding its enactment of cellular web infrastructure products. This volition assistance optimize existing 5G networks, and foster the innovations that volition underpin the modulation to the adjacent iteration of telecom technology, 6G. As Nvidia wrote successful its property merchandise announcing the deal, "The concern marks the opening of the AI-native wireless era, providing the instauration to enactment AI-powered user experiences and endeavor services astatine the edge."

As portion of the partnership, Nvidia besides made a $1 cardinal concern successful Nokia astatine a terms of $6.01 per share. The information that the banal presently trades astatine a higher level bodes good for some companies.

Moreover, the expert steadfast Omdia predicts that the RAN marketplace volition turn to $200 cardinal by 2030. Over its past 4 reported quarters, Nokia had 19.7 cardinal euros ($23 billion) successful nett sales, truthful the likelihood is that its gross maturation volition accelerate from here.

Nokia whitethorn already person begun to spot faster gross growth. In the 3rd 4th of 2025, its gross accrued by 12% twelvemonth implicit twelvemonth to 6.0 cardinal euros ($7.0 billion). By comparison, its gross maturation for the year's archetypal 9 months was lone 4%.