Nokia Stock Price Surges 20% After Nvidia’s $1 Billion AI-6G Deal Announcement

Nokia’s stock price surged more than 20% on Tuesday to €6.59 after Nvidia announced a $1 billion investment and a landmark partnership to accelerate AI-native RAN development for next-generation 5G-Advanced and 6G networks.

The move marks one of Nokia’s biggest single-day jumps in years, triggered by Nvidia’s plan to acquire a 2.9% stake in the Finnish telecom giant. Investors reacted strongly to the deal, seeing it as a pivotal step toward integrating artificial intelligence into global wireless infrastructure.

Nokia Stock Price Boosted by Nvidia Partnership

Under the deal, Nvidia will invest $1 billion to purchase over 166 million newly issued Nokia shares at €6.01 each. The investment makes Nvidia one of Nokia’s top shareholders and a key strategic ally in developing AI-powered Radio Access Networks (RAN) for telecom operators.

The companies will combine Nvidia’s accelerated computing platforms with Nokia’s AirScale RAN solutions to enable networks that can learn, optimize, and adapt in real time. The collaboration is designed to help telecom providers deliver low-latency, data-driven services essential for 6G connectivity, autonomous systems, and advanced industrial automation.

Industry research firm Omdia projects the AI-RAN market will exceed $200 billion by 2030. Experts view the partnership as the beginning of the “AI-native wireless era,” reshaping how communication service providers deploy and manage their infrastructure.

Nvidia CEO Jensen Huang called telecommunications “the digital nervous system of our economy and security.” He added, “Built on Nvidia CUDA and AI, AI-RAN will revolutionize telecommunications. Together with Nokia, we’re creating the foundation for adaptive networks that define the next generation of connectivity.”

Nokia President and CEO Justin Hotard said the partnership will “accelerate AI-RAN innovation to put an AI data center into everyone’s pocket.”

Strategic Partners: T-Mobile and Dell Join the Initiative

T-Mobile US will participate in field trials beginning in 2026, testing the AI-RAN system’s real-world performance and efficiency improvements. Dell Technologies will provide its PowerEdge servers as part of the supporting AI infrastructure.

Dell CEO Michael Dell said the partnership “turns the edge into the most valuable real estate for AI,” emphasizing that data processing closer to users will enhance speed and security while reducing network strain.

The collaboration also features integration of Nokia’s SR Linux software with Nvidia’s Spectrum-X Ethernet platform. This step will help optimize AI training and inferencing workloads, enabling telecom operators to scale more efficiently.

Market Impact and Investor Sentiment

Following the announcement, Nokia shares soared to their highest level since 2021. Analysts said the combination of fresh capital, technological innovation, and industry leadership strengthened investor confidence.

Market watchers noted that Nvidia’s move adds credibility to Nokia’s AI-driven roadmap, positioning the company as a central player in 6G infrastructure. Many analysts see the deal as a “validation moment” for Nokia’s turnaround efforts after years of competitive pressure from Ericsson and Huawei.

With this partnership, Nokia’s stock price reflects growing optimism that the company is re-entering the top tier of telecom innovation—powered by AI and backed by one of the world’s most valuable tech firms.

FYI (keeping you in the loop)-

Q1: Why did Nokia’s stock price rise after the Nvidia deal?

The stock rose because Nvidia announced a $1 billion investment and partnership with Nokia to develop AI-native RAN solutions for 5G and 6G networks.

Q2: How much stake will Nvidia hold in Nokia?

Nvidia will acquire a 2.9% stake in Nokia by purchasing over 166 million newly issued shares at €6.01 each.

Q3: When will AI-RAN field trials begin?

Field trials are expected to start in 2026, led by T-Mobile US and supported by Dell Technologies.

Q4: What is the projected size of the AI-RAN market?

According to Omdia, the AI-RAN market could surpass $200 billion by 2030.

Q5: What does this mean for Nokia’s long-term growth?

The deal enhances Nokia’s position in AI-based telecom infrastructure, improving revenue prospects and investor confidence.