Nokia Shares Retreat After 40% Surge on Nvidia AI Partnership
Nokia Oyj's stock fell 5% in Helsinki trading, retracing part of its 40% two-day rally sparked by Nvidia's $1 billion strategic investment. The chipmaker acquired a 2.9% stake at €6.01 per share, becoming Nokia's second-largest shareholder.
The partnership targets AI-driven radio access networks and data center solutions, with commercial deployment expected from 2027. While the deal positions Nokia at the forefront of 5G/6G infrastructure development, Kepler Cheuvreux analysts caution that medium-term revenue potential remains unproven.
Nvidia's MOVE signals growing convergence between semiconductor and telecom sectors as AI workloads demand advanced networking capabilities. The investment values Nokia at near-decade highs, though market participants appear divided on whether the valuation reflects fundamental improvements or speculative fervor.
