Shares of Nokia jumped 6.85% to $10.82 on September 17, snapping back from a week of declines, after the Finnish telecom equipment maker announced an expanded partnership with Microsoft aimed at using artificial intelligence to run wireless networks with less human intervention. The move pairs Nokia's network data tools with Microsoft's cloud-based data platform to help mobile carriers predict equipment failures, optimize coverage, and manage call quality automatically. Nokia and Microsoft Want AI to Run Your Cell Network — Is the Stock's 70% Rally This Year Getting Ahead of the Revenue?
Shares of Nokia surged 6.85% to $10.82 on September 17, after the company announced it is deepening its partnership with Microsoft to build a combined data platform that lets wireless carriers automate network decisions using artificial intelligence. Nokia said the pairing would cut the time telecom operators need to reach usable network data from weeks down to minutes. The stock's gain extends a remarkable run: Nokia's year-to-date rise now stands at roughly 70%.
Turning Raw Network Data Into a Product Microsoft Can Sell
Nokia's tool handles telecom-specific data collection and structuring, while Microsoft's cloud platform provides large-scale analytics and AI, creating a single environment where operators can analyze and automate decisions across their entire network. For shareholders, this matters because it embeds Nokia's software deeper inside carrier operations — a stickier, higher-margin revenue stream than selling hardware. Nokia said the solution is available now, with ongoing expansion of use cases and customer deployments planned.
Back-to-Back AI Announcements Build a Narrative — But Revenue Is Still Ahead The Microsoft deal landed just one day after Nokia revealed that eight operators — including A1 Group, Chunghwa Telecom, and several Middle Eastern carriers — are advancing trials of its AI-powered wireless platform built with NVIDIA.
Nokia says that platform has already delivered more than 20% improvements in spectral efficiency — meaning carriers can squeeze more data through existing airwaves. Yet management conceded on its Q2 earnings call that AI-RAN products are in pilot mode through late 2026 and won't be commercially available until 2027. Investors are pricing in a future that hasn't shipped yet.
The Financial Foundation Is Firming Up — Slowly
In Q2 2026, Nokia's net sales rose 9% year-over-year, with AI and cloud customer sales surging 105%.
Gross margin expanded to 46% and AI & Cloud order intake reached €2.8 billion. But there's a catch: only about half of that order volume is expected to convert to revenue within 12 months , creating potential near-term volatility. Nokia raised its full-year comparable operating profit guidance to €2.1–2.6 billion.
NVIDIA's $1 Billion Bet Validates — and Pressures — the Strategy
NVIDIA invested $1 billion for roughly 166 million Nokia shares at $6.01 each, giving it about 2.9% of the company.
At today's prices, that stake is worth approximately $1.69 billion — a powerful endorsement, but one that raises the bar. Nokia now must prove its two big AI partnerships can generate durable revenue, not just headlines, before the next earnings report on October 22.