Nokia announced a $4 billion commitment to research, development and production of AI‑enabled network connectivity in the United States, a move that aligns with the company’s broader strategy unveiled at its Capital Markets Day 2025.
The investment is split between $3.5 billion for U.S. R&D and $500 million for manufacturing and capital expenditures in Texas, New Jersey and Pennsylvania, creating a multi‑year pipeline of AI‑native networking solutions.
This new commitment builds on Nokia’s earlier $2.3 billion investment in U.S. semiconductor manufacturing, R&D and AI that followed its acquisition of Infinera, and signals a decisive shift from traditional telecom services toward data‑center and cloud infrastructure.
In its most recent earnings, Nokia reported revenue of $5.61 billion versus an estimate of $4.67 billion, and earnings per share of $0.07 against an estimate of $0.06. The beat was driven by strong demand in network‑infrastructure and data‑center segments, coupled with disciplined cost management that kept margins stable despite higher capital spend.
Management revised its 2025 operating‑profit guidance in July to EUR 1.6‑2.1 billion from the prior EUR 1.9‑2.4 billion range, citing currency headwinds and tariffs. In October, the guidance was nudged upward to EUR 1.7‑2.2 billion, reflecting confidence in the AI‑driven demand trajectory.
The investment follows a $1 billion equity stake and partnership with NVIDIA, which acquired a 2.9 % stake in Nokia in late October 2025. The partnership focuses on developing AI‑native mobile networks and integrating Nokia’s networking technologies with NVIDIA’s chip architecture, providing a strong validation of Nokia’s AI strategy.
Investors responded positively to the announcement, with the market citing the NVIDIA partnership and the $4 billion U.S. investment as key drivers of confidence in Nokia’s AI narrative.
CEO Justin Hotard said, “Nokia changed the world once by connecting people — and will again by connecting intelligence. As the trusted western provider of secure and advanced connectivity, our technology is powering the AI supercycle.”
The U.S. telecom‑equipment market is dominated by Nokia, Ericsson and Samsung. By expanding its U.S. R&D and manufacturing footprint, Nokia strengthens its competitive position in a market where domestic production is limited.
The $4 billion investment and the NVIDIA partnership together position Nokia to capture a growing share of the AI supercycle, reinforcing its commitment to delivering AI‑native networking solutions that meet the demands of data‑center and cloud customers.
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