Nokia Refocuses on Network Infrastructure and AI Super Cycle
Nokia’s Network Infrastructure unit surpassed Mobile Networks in Q2, driven by AI-driven IP and optical demand. Enterprise sales set records, while traditional telco sales decreased.
Key Points:
- AI Growth: Network Infrastructure with optical and IP sales exceeded Mobile Networks for the first time since early 2024, driven by hyperscaler demand.
- Rise in Enterprise: Enterprise sales reached a record 16% of revenue, including 30 private 5G deals; telco sales dipped below 80%, signaling a shift in customer mix.
- Restructuring: New chief promises a unified vision and internal reorg to meet AI-era demands.
The Finnish firm’s latest financial review demonstrates the shift to network infrastructure and adapting to the AI supercycle. Nokia’s Mobile Networks fell to second place in Q2 as Network Infrastructure emerged as the main revenue driver. Record quarter for enterprise sales accounts for almost 16% of total revenues.
Nokia’s restructuring highlights the focus on network operations and products. The company’s pitch in the AI infrastructure market positions it as a leader in connectivity for communication providers, hyperscalers, defense, and new areas.
