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Nokia Posts AI-Driven Beat as CEO Calls It a Supercycle

Stronger optical sales tied to AI datacenters lifted results following the Infinera deal.

Overview

  • Third-quarter revenue rose 9% year over year with a 21% EPS beat, and the stock jumped about 10% in U.S. trading after the report.
  • AI and cloud customers represented 6% of group net sales and 14% of Network Infrastructure, while optical networks grew 19%.
  • The completed acquisition of Infinera bolstered datacenter optical capacity and helped fuel cloud-related demand.
  • CEO Justin Hotard likened AI’s trajectory to the 1990s internet boom and downplayed bubble fears, citing broad demand from large tech firms and smaller European players.
  • Nokia formed a Technology and AI organization led by CTO Pallavi Mahajan, and analysts flagged traction with CoreWeave and footholds with Microsoft and Google.