Nokia Shares Surge 21% After Nvidia’s $1 Billion Stake Purchase for AI and 6G Collaboration

Nokia's stock soared 21% following Nvidia's acquisition of a $1 billion stake, securing a 2.9% ownership in the Finnish telecom giant. The deal involves issuing over 166 million new shares, with proceeds earmarked for AI and corporate projects. Initially, Nokia's stock spiked 26% on the news.

The partnership extends beyond financial investment, focusing on shaping the future of mobile networks. Nokia and Nvidia will collaborate on 6G development, with Nokia adapting its 5G and 6G software to run on Nvidia's chips. The companies also plan to co-develop AI infrastructure networking systems, potentially integrating Nokia's technology into Nvidia's upcoming AI platforms.

Once known for flip phones, Nokia now supplies 5G hardware to major telecom operators. This alliance positions Nokia at the forefront of the AI-driven 6G era. The deal will modernize Nokia's software stack while opening doors for Nvidia to incorporate Nokia's equipment in future data center builds.

Further details are expected during Nvidia's developer event in Washington, D.C., where CEO Jensen Huang will address U.S. lawmakers and officials. This strategic location underscores Nvidia's push to remain central to U.S. tech policy. The MOVE follows Nvidia's recent $5 billion investment in Intel, signaling aggressive expansion in the semiconductor space.