Nokia Corporation (NOK) has completed a $1 billion share sale to Nvidia Corporation (NVDA), giving the chipmaker a 2.9% stake in the Finnish telecom company. The deal adds 166.4 million new Nokia shares, each priced at $6.01, bringing Nokia’s total to about 5.74 billion shares. The new shares will begin trading on Nasdaq Helsinki on November 14. Nokia confirmed that it will not be listed on Euronext Paris as part of its plan to exit that exchange.
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This investment follows an announcement from late October and marks a deeper tie between the two companies. The new funding will help Nokia move faster on its plan to make 5G and 6G networks smarter and more efficient.
Meanwhile, NOK shares climbed 1.74% on Wednesday to close at $7.02. Overall, the stock has performed well in 2025 so far, rising over 60% year-to-date.
Working Together on AI-RAN and Data Centers
The partnership focuses on developing what the companies call “AI-native” network systems. Nokia will use Nvidia’s CUDA platform to improve its radio access network software. It will also use Nvidia’s ARC-Pro design to build future 5G and 6G products. The idea is to make networks that can use AI to process and manage data faster, from data centers to mobile devices.
In addition, Nokia and Nvidia will team up on new data center networking tools. Nokia plans to integrate its SR Linux software with Nvidia’s Spectrum-X Ethernet system. The companies also plan to combine Nokia’s optical and switching technology with Nvidia’s future AI data center designs.
Nokia recently launched new 7220 IXR switches that can move up to 102.4 terabits per second. The company said proceeds from the Nvidia deal will support its push for what it calls “trusted connectivity for the AI supercycle.”
A Three-Way Test with T-Mobile
T-Mobile US Inc. (TMUS) is also part of this growing alliance. The carrier will test Nokia and Nvidia’s AI-RAN technology in its network next year, with field trials expected in 2026. The goal is to see how the AI systems perform in real-world conditions before 6G arrives later in the decade.
When the partnership was first announced in October, Nokia’s stock rose more than 20%. Investors viewed the move as a sign that the company is gaining new momentum in advanced wireless and data networking.
For Nokia, the Nvidia investment offers both funding and a strategic lift. It connects the telecom maker with one of the most important players in AI hardware and software. For Nvidia, it opens a path into telecom and edge computing, adding another layer to its fast-growing AI platform.
As the AI boom spreads from data centers to mobile networks, this partnership signals how technology and telecom firms are preparing for the next wave of connectivity.
Is NOK Stock a Buy, Hold, or Sell?
On the Street, Nokia boasts a Moderate Buy consensus rating. The average NOK stock price target is $6.44, indicating an 8.26% downside from the current price.
