Lumen Technologies vs. Nokia: Which Stock Will Make You Richer?

Core Insights - Lumen Technologies and Nokia are shifting focus towards the artificial intelligence sector, with Lumen transitioning from consumer internet to a fiber-optic network dedicated to AI's high-bandwidth needs [1][2] Financial Performance - Lumen's stock has increased by approximately 80% over the past 12 months, while Nokia's shares have risen nearly 60% in the same period, indicating positive market reception for both companies' pivots towards AI [2] - Nokia's revenue grew by 3% to 19.9 billion euros in 2025, whereas Lumen's sales declined from $13.1 billion in 2024 to $12.4 billion in 2025 [4] - Nokia reported an operating profit of 885 million euros in 2025, while Lumen faced an operating loss of $812 million [4] - Nokia's free cash flow (FCF) for 2025 was 1.5 billion euros, allowing for a dividend yield of 2%, whereas Lumen's FCF was $371 million, and it eliminated its dividend in 2022 [5] Strategic Initiatives - Nokia has partnered with Nvidia to develop an AI-native wireless network, showcasing its commitment to tangible results in the AI sector [5] - On February 19, Nokia announced the deployment of the world's first 5G core software-as-a-service (SaaS) network, which utilizes AI for management and offers a cloud-based solution for quick 5G deployment [6] Investment Outlook - Nokia is viewed as the superior stock choice for capitalizing on the AI market due to its stronger financials and demonstrated progress in AI initiatives, making it a preferred option for long-term investors [3][7]