Nokia pivots to AI infrastructure with Infinera buy, boosting optical and IP network growth amid telecom shifts

Nokia, a historic tech giant, is transforming from a telecom equipment maker to a key player in AI infrastructure after acquiring Infinera in 2025. This acquisition enhances Nokia's photonics and optical networking capabilities, crucial for data center interconnects and AI-driven growth. While its traditional radio access network business grows slowly, Nokia's optical and IP network segments are expanding rapidly, driven by AI data center demand. Partnerships like the one with NVIDIA on AI-native radio access networks (AI-RAN) promise future revenue growth by enabling software-centric, AI-powered telecom infrastructure. Despite recent revenue declines and cash flow challenges, Nokia is positioned to capitalize on rising AI and telecom traffic through innovation in networking technology.

Nokia's market cap stands at $58.13 billion as of September 28, 2026, 22:04 WIB, with a daily trading volume of over 44.5 million shares on Pluang. The stock price is currently $9.99, down 3.76% for the day, while the dividend yield remains at 1.57%. This trading activity reflects investor attention on Nokia's evolving role in AI infrastructure and networking technology.