Nokia’s New Vision: Connectivity at the Heart of the AI Supercycle

Nokia’s new CEO, Justin Hotard, has hinted at a significant shift in the company’s strategy, with a new focus on the vital role of connectivity in the coming AI supercycle. This transition aims to position Nokia as a leader in enabling the next generation of artificial intelligence-driven networks and services.

The announcement comes as Nokia released its full Q2 2025 earnings, just a day after sharing preliminary figures. The Finnish telecom giant revealed it had lowered its full-year operating profit outlook, citing the impact of US tariffs and a weaker US dollar. Despite these challenges, Nokia’s revenue for the second quarter rose 2% year-over-year to €4.6 billion. Notably, Network Infrastructure revenue surged by 25%, and Cloud and Network Services saw a 10% increase. These gains, however, were offset by a disappointing performance in the Mobile Networks division, which saw revenue fall 13% to €1.7 billion due to decreased activity in India and a one-off revenue boost in the previous year. Still, Nokia posted a net profit of €96 million for the quarter, a strong rebound from a €142 million loss during the same period last year.

Reflecting on his first quarter at the helm, Hotard stated he spent significant time engaging with stakeholders across the industry. He highlighted that the central message from these discussions was the critical importance of robust connectivity to power artificial intelligence—not just for traditional communications service providers (CSPs) and hyperscalers, but also for emerging sectors such as defense and national security.

“With our portfolio in mobile and fiber access, data centers, and transport networks, Nokia is uniquely positioned to be a leader in this market transition,” Hotard commented. He emphasized the company’s opportunity to unite its businesses under a single vision, with further details to be unveiled at Nokia’s Capital Markets Day on November 19.

As the telecom industry prepares for the impact of AI, Nokia’s pivot signals a new chapter for the company, one focused on leveraging its technological strengths to drive the next wave of innovation in global connectivity.