This Former Smartphone Maker Has Quietly Become a Top AI Stock
2026-07-16 12:10
•Marc Guberti •The Motley Fool
•••• •• Axe Capital view
Nokia’s AI Comeback Signals a Telecom Upgrade Wave
Nokia’s pivot to AI-powered network tech puts it in pole position for 5G and 6G upgrades.
Nokia has quietly rewritten its playbook, shifting from once-dominant smartphone maker to a frontrunner in AI-driven telecom infrastructure. Its surge—130% in the past year—and a 49% jump in its AI/cloud segment show real momentum. The $1 billion Nvidia partnership is no minor endorsement; it signals Nokia's leading role in AI-RAN, a tech making networks smarter in real time. For South Africa investors, this matters. Our telecom sector, led by MTN, depends on network innovations to handle growing data traffic and upcoming 6G waves. Nokia’s tech could be the backbone of these upgrades, ultimately boosting demand for telecom services locally. The rand might respond positively, gaining some support if foreign appetite for network equipment grows. Still, execution risk remains: AI-RAN sales are early-stage, and heavyweight telcos must commit broadly to new infrastructure for Nokia to sustain growth. this is just my opinion and not financial advice
Watch Nokia closely and consider small exposure if you want to play the telecom upgrade theme. For now, keep MTN on your radar given its dependency on infrastructure improvements but avoid rushing into MTN shares; wait for clearer capex signals. Tilt USD/ZAR exposure cautiously towards rand strength on the back of tech-driven foreign investment inflows.
- NOK
- MTN
- USD/ZAR
- Delayed adoption of AI-RAN by major telecom operators
- Global tech spending slowdown impacting Nokia’s growth
6/10
Nokia, once a smartphone maker, has rallied 130% over the past year due to its AI-RAN (artificial intelligence radio access networks) technology, which enables real-time AI inference at the edge. The company's AI and cloud segment grew 49% in Q1, and with Nvidia's $1 billion investment and backing, Nokia is positioned to capitalize on an anticipated $35 billion AI-RAN market over five years as telecom companies upgrade infrastructure.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Marc Guberti
Categories: Technology, AI, Semiconductors, Equities
Tickers: NOK, NVDA
Sentiment: Positive - Nokia's stock has rallied 130% over the past year, its AI and cloud segment grew 49% in Q1, it has secured a $1 billion partnership with Nvidia, and the company is positioned to lead in the emerging AI-RAN market with an anticipated $35 billion opportunity over five years. Customer trials are launching with 10 publicly committed customers. Nvidia made a strategic $1 billion investment in Nokia to support AI-native 5G and 6G network upgrades. CEO Jensen Huang's strong endorsement of AI-RAN as a 'generational platform shift' and Nvidia's influence in the AI build-out positions the company to benefit from this emerging infrastructure technology.
Keywords: AI-RAN, artificial intelligence, data centers, AI inference, telecommunications, 5G, 6G, edge computing
Insights:
- NOK: Positive: Nokia's stock has rallied 130% over the past year, its AI and cloud segment grew 49% in Q1, it has secured a $1 billion partnership with Nvidia, and the company is positioned to lead in the emerging AI-RAN market with an anticipated $35 billion opportunity over five years. Customer trials are launching with 10 publicly committed customers.
- NVDA: Positive: Nvidia made a strategic $1 billion investment in Nokia to support AI-native 5G and 6G network upgrades. CEO Jensen Huang's strong endorsement of AI-RAN as a 'generational platform shift' and Nvidia's influence in the AI build-out positions the company to benefit from this emerging infrastructure technology.