Valued at 600 Billion, NVIDIA Invests 10 Billion! How Nokia, After Selling Its Phones, Is Making a Comeback
Once known as its mobile phones were sold in 2013, Nokia has staged a remarkable commercial comeback, now standing as a "patent giant" and "AI infrastructure builder." In Q1 2026, its net profit surged over 200% year-over-year.
Nokia retains a vast portfolio of over 26,000 patent families, including over 7,000 essential 5G patents. This creates a high-margin "licensing" business, generating €1.5 billion in 2025 with over 70% operating margin, from smartphone makers to automotive and streaming media companies.
Beyond patents, Nokia is a key player in AI infrastructure. Its acquisition of Infinera made it a top supplier of high-speed optical modules for AI data centers. Its AI-RAN technology allows 5G base stations to utilize idle computing power for AI inference tasks. A strategic $1 billion investment from NVIDIA in 2025 aims to unlock this distributed edge compute potential, with their joint AI Aerial platform already in trials.
Looking ahead, Nokia is actively shaping 6G standards with AI-native architecture and is transitioning toward a recurring revenue model through network automation and SaaS offerings. With strong free cash flow and dividends, Nokia has transformed from a faded mobile brand into a core technology player poised for the AI and 6G era.
marsbit05/29 02:19
