Nokia Stock Surges 45% After Secret Nvidia Deal
Nokia has been off most investors’ radars for years. The company that once dominated the cell phone market faded into obscurity after smartphones wiped out its handset business. But a stunning new partnership with Nvidia is turning heads on Wall Street and could transform Nokia into a major winner.
The Finnish telecom hardware company just secured a deal that positions it at the center of the next technology revolution. Investors who dismissed Nokia as yesterday’s news might want to take another look.
From Mobile Phones to Network Infrastructure
Nokia reinvented itself after losing the smartphone wars. The company shifted its focus to telecom equipment and became a critical behind-the-scenes player in global communications infrastructure. Most consumers never see Nokia’s work, but mobile carriers depend on its technology every day.
This transition kept Nokia alive, but it did not ignite investor excitement. The company operated in a slow-growth industry with intense competition. Revenue stayed relatively flat. The stock languished. Few analysts bothered covering it.
That changed dramatically in October 2025 when Nokia announced its partnership with Nvidia.
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The Nvidia Partnership Changes Everything
Nokia will integrate Nvidia’s hardware into its cellular network infrastructure products under the new agreement. The collaboration focuses on developing AI-RAN (radio access network) technologies powered by Nvidia’s chips. These advanced systems will optimize existing 5G networks and lay the groundwork for the transition to 6G technology.
Nvidia described the partnership as marking the beginning of the “network infrastructure era.” The technology will provide the foundation for experiences and enterprise services that run at the network edge.
The financial commitment behind this deal signals serious intent. Nvidia invested 1 billion dollars in Nokia at 6.01 dollars per share. The stock now trades above that level, delivering early gains for both companies.
A 200 Billion Dollar Market Opportunity
Analyst firm Omdia projects the RAN market will reach 200 billion dollars by 2030. Nokia generated 23 billion dollars in net sales over the past four reported quarters. The growth potential from this expanding market could dramatically accelerate Nokia’s revenue trajectory.
Early signs suggest momentum is building. Nokia reported 12 percent year-over-year revenue growth in the third quarter of 2025, reaching 7.0 billion dollars. That acceleration stands out compared to just 4 percent growth for the first nine months of the year.
The partnership with Nvidia and strong Q3 results triggered a sharp rally in Nokia stock. Shares jumped more than 45 percent over the past year after trading mostly sideways for an extended period.
Valuation Looks Attractive Despite Recent Gains
Nokia currently trades at 38 times earnings, which might seem expensive at first glance. But the forward price-to-earnings ratio of just 18 tells a different story. That metric suggests Wall Street expects profit growth to accelerate significantly from here.
The company is also building strategic relationships beyond Nvidia. Nokia has formed partnerships with Verizon and Lockheed Martin. In early 2025, it acquired Infinera, an optical networking company, for 2.3 billion dollars. These moves show Nokia is aggressively positioning itself across multiple growth avenues in the infrastructure space.
Why Nokia Stands Out
Nokia occupies a unique position in the technology landscape. While companies like Nvidia grab headlines for their chips and Alphabet dominates software discussions, Nokia provides essential infrastructure that makes everything else possible. Networks cannot function without the equipment Nokia produces.
The transition to networks and eventually 6G technology creates a multi-year growth runway. Telecom carriers around the world must upgrade their infrastructure to handle increasing data demands and enable new applications. Nokia stands ready to supply the equipment these upgrades require.
The Nvidia partnership adds another dimension by bringing advanced capabilities directly into network hardware. This integration could give Nokia a significant competitive advantage over rivals who lack similar partnerships.
FAQ: Nokia Investment Opportunity
Why is Nokia stock suddenly attractive to investors?
Nokia secured a major partnership with Nvidia to develop network infrastructure technology. Nvidia invested 1 billion dollars in Nokia and will integrate its chips into Nokia’s cellular network products. This positions Nokia to capitalize on the 200 billion dollar RAN market projected for 2030. The stock has already surged 45 percent in the past year following this announcement.
What does Nokia actually do now after losing the smartphone market?
Nokia manufactures telecom hardware and network infrastructure equipment. The company pivoted from consumer handsets to behind-the-scenes technology that mobile carriers use to operate their networks. Nokia’s products power 5G networks today and will form the foundation for future 6G technology. Most consumers never see Nokia’s work, but it remains essential to global communications.
Is Nokia’s valuation reasonable at current prices?
Nokia trades at 38 times trailing earnings but just 18 times forward earnings. This suggests Wall Street expects profit growth to accelerate substantially. Third quarter 2025 revenue grew 12 percent year-over-year, up from just 4 percent growth in the first nine months. The forward valuation appears reasonable given the growth prospects from the expanding RAN market and Nvidia partnership.
What risks should investors consider with Nokia stock?
Nokia operates in a competitive industry with intense pricing pressure. Revenue growth has been inconsistent historically, and the company faces well-funded rivals. The projected 200 billion dollar RAN market opportunity depends on carriers investing heavily in network upgrades, which could slow during economic downturns. Nvidia’s 1 billion dollar investment shows confidence, but execution challenges could prevent Nokia from capturing its fair share of market growth.
