Nokia reported a stronger-than-expected rise in quarterly comparable operating profit for the second quarter, driven by accelerating demand from artificial intelligence and cloud computing customers.
The Finnish telecommunications equipment maker highlighted that its network infrastructure business is increasingly benefiting from the broader build-out of data centers, a shift that has helped offset cyclical headwinds in traditional mobile network spending.
Shares of Nokia (4849.T) traded higher in the session, reflecting positive sentiment around the company's strategic pivot.
The stock has been supported by recent reports of an expanded partnership with Nvidia, a collaboration analysts view as critical for Nokia to navigate the downturn in its core network business while capturing growth in the AI infrastructure market.
The results underscore a broader trend in the telecom sector, where legacy equipment vendors are repositioning themselves to serve the hyperscaler demand for high-capacity networking solutions.
Nokia's ability to secure contracts in the AI and cloud segments suggests that its diversification strategy is gaining traction, potentially stabilizing revenue streams that have been pressured by slower 5G rollout cycles in key markets.