This Telecom Stock Could Be a Surprising Long-Term Winner as Artificial Intelligence Adoption Accelerates

Core Insights - Nokia has shifted its focus from being a consumer mobile phone brand to a telecom hardware company, which has led to decreased visibility among consumers and investors [1] - A new partnership with Nvidia has sparked renewed interest in Nokia's stock, potentially aiding its transition into artificial intelligence (AI) and supporting long-term recovery [2] Company Developments - Nokia is expanding into AI, having established partnerships with Verizon and Lockheed Martin, and acquired Infinera for $2.3 billion in early 2025 [4] - The partnership with Nvidia, announced in October, involves developing AI-powered radio access network (AI-RAN) technologies, enhancing Nokia's cellular network infrastructure and paving the way for 6G technology [5] Financial Implications - Nvidia invested $1 billion in Nokia at a share price of $6.01, indicating positive market sentiment as Nokia's stock trades higher [6] - The RAN market is projected to grow to $200 billion by 2030, suggesting significant revenue growth potential for Nokia, which reported €19.7 billion ($23 billion) in net sales over the past four quarters [6] - Nokia's revenue for Q3 2025 increased by 12% year over year to €6.0 billion ($7.0 billion), showing an acceleration in growth compared to a 4% increase in the first nine months of the year [7]