Nokia (NOK) Lands $1B Nvidia (NVDA) Deal to Supercharge AI & 6G—Wall Street Still Yawns

Nokia just scored a billion-dollar vote of confidence from Nvidia—but will it move the needle?

The AI arms race gets a 6G turbocharge

Nvidia’s cash injection targets next-gen network infrastructure, merging AI processing with tomorrow’s connectivity. The play? Dominate latency-free edge computing before competitors even draft their whitepapers.

Wall Street’s predictable skepticism

Analysts nod politely while muttering about Nokia’s 5G missteps. ‘Show me the ROI’ remains the chorus—as if trillion-dollar markets ever emerged from quarterly reports.

One thing’s certain: when hyperscalers start demanding AI-native networks, this partnership won’t look like ‘just another telecom deal.’ Unless it does.

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This investment follows an announcement from late October and marks a deeper tie between the two companies. The new funding will help Nokia MOVE faster on its plan to make 5G and 6G networks smarter and more efficient.

Meanwhile, NOK shares climbed 1.74% on Wednesday to close at $7.02. Overall, the stock has performed well in 2025 so far, rising over 60% year-to-date.

Working Together on AI-RAN and Data Centers

The partnership focuses on developing what the companies call “AI-native” network systems. Nokia will use Nvidia’s CUDA platform to improve its radio access network software. It will also use Nvidia’s ARC-Pro design to build future 5G and 6G products. The idea is to make networks that can use AI to process and manage data faster, from data centers to mobile devices.

In addition, Nokia and Nvidia will team up on new data center networking tools. Nokia plans to integrate its SR Linux software with Nvidia’s Spectrum-X Ethernet system. The companies also plan to combine Nokia’s optical and switching technology with Nvidia’s future AI data center designs.

Nokia recently launched new 7220 IXR switches that can move up to 102.4 terabits per second. The company said proceeds from the Nvidia deal will support its push for what it calls “trusted connectivity for the AI supercycle.”

A Three-Way Test with T-Mobile

T-Mobile US Inc. (TMUS) is also part of this growing alliance. The carrier will test Nokia and Nvidia’s AI-RAN technology in its network next year, with field trials expected in 2026. The goal is to see how the AI systems perform in real-world conditions before 6G arrives later in the decade.

When the partnership was first announced in October, Nokia’s stock ROSE more than 20%. Investors viewed the move as a sign that the company is gaining new momentum in advanced wireless and data networking.

The Bigger Picture

For Nokia, the Nvidia investment offers both funding and a strategic lift. It connects the telecom maker with one of the most important players in AI hardware and software. For Nvidia, it opens a path into telecom and edge computing, adding another LAYER to its fast-growing AI platform.

As the AI boom spreads from data centers to mobile networks, this partnership signals how technology and telecom firms are preparing for the next wave of connectivity.

Is NOK Stock a Buy, Hold, or Sell?

On the Street, Nokia boasts a Moderate Buy consensus rating. The average NOK stock price target is $6.44, indicating an 8.26% downside from the current price.