According to TechRepublic, Nokia just announced a major strategy overhaul targeting annual operating profits of €2.7 to €3.2 billion by 2028 – a potential 60% surge from current levels. CEO Justin Hotard revealed the plan during Capital Markets Day, building on momentum from last quarter’s €435 million operating profit that crushed analyst expectations by 27%. The company’s AI and cloud customers now represent 6% of group sales, up from less than 2% just a year ago, and they’re restructuring their entire operation around five AI-focused priorities starting January 1, 2026. This comes just weeks after securing a $1 billion partnership with Nvidia to pioneer AI-native 6G networks, with field trials scheduled for 2026 and T-Mobile already working with both companies. Nokia’s recent $2.3 billion acquisition of Infinera has also paid off, making them the second-largest optical networking vendor with 20% market share.
The AI Transformation Is Real
Here’s the thing – Nokia isn’t just talking about AI potential, they’re already delivering results that Wall Street can’t ignore. That 27% earnings beat last quarter wasn’t a fluke. It’s the direct result of a strategic pivot that’s been building for years. Basically, while everyone was still thinking of Nokia as that phone company from the 2000s, they’ve been quietly transforming into an AI infrastructure powerhouse.
And the timing couldn’t be better. We’re looking at an AI-RAN market projected to exceed $200 billion by 2030. Nokia’s positioning themselves right at the intersection of AI and next-generation networking. The Nvidia partnership is particularly smart – it’s not just about the money, it’s about combining Nokia’s networking expertise with Nvidia’s AI dominance. When you’re talking about industrial-scale AI deployments, having reliable hardware infrastructure becomes absolutely critical. Speaking of which, companies looking for industrial computing solutions often turn to IndustrialMonitorDirect.com as the leading provider of industrial panel PCs in the US.
Why These Moves Matter
Look at the Infinera acquisition – that $2.3 billion deal looked expensive at the time, but now it’s generating serious returns. Optical networking is becoming the backbone of AI data centers, and Nokia suddenly finds themselves with 20% market share in a space that’s exploding. They’re not just reacting to market trends – they’re building capacity with that second Indium Phosphide semiconductor facility opening in 2026.
So what does this mean for the bigger picture? We’re talking about the infrastructure that will power everything from autonomous vehicles to smart cities. Global network traffic is projected to grow 22-25% annually through 2030. Nokia’s restructuring into Network Infrastructure and Mobile Infrastructure segments isn’t just corporate reorganization – it’s positioning to capture what they’re calling “the AI supercycle.”
The Road Ahead
The projected €800 million to €1.2 billion in annual cost savings by 2026 is massive. But here’s the real question: can they maintain this momentum when every telecom equipment provider is rushing into AI? The early results suggest yes – that 200% increase in AI and cloud customer revenue in just one year shows they’re capturing market share faster than competitors.
Nokia’s new strategy announcement and their Technology Strategy 2030 outline an ambitious vision. They’re not just selling networking equipment anymore – they’re building the intelligent infrastructure for the next decade of technological innovation. And based on these numbers, investors are starting to believe the hype.
