Trends
Nokia AI and cloud orders top €1bn as hyperscaler demand surges
Nokia’s AI and cloud business is accelerating sharply, with hyperscaler-driven demand pushing fibre-based data centre infrastructure into a new growth phase.
Headline
Nokia’s AI and cloud business is accelerating sharply, with hyperscaler-driven demand pushing fibre-based data centre infrastructure into a new growth phase.
Context
Nokia reported a sharp acceleration in its AI and cloud business, booking €1 billion in orders in a single quarter, driven primarily by hyperscaler demand for fibre-based data centre infrastructure supporting AI workloads. Total net sales rose 4% at the start of the year, reaching a 16-year high, with AI and cloud revenue increasing 49% year-on-year, making it the fastest-expanding segment in the portfolio.
Evidence
Pending intelligence enrichment.
Analysis
The growth was underpinned by strong demand for optical networking systems, which increased 20%, significantly outpacing IP Networks, which grew only 3%, while overall network infrastructure sales rose 6%. Nokia said AI-related demand momentum is extending delivery timelines, reflecting a strengthening backlog tied to large-scale hyperscaler infrastructure rollouts. The company also upgraded its AI and cloud market outlook, raising expected addressable growth from 16% to 27% for 2025-2028, and lifted full-year comparable operating profit guidance to €2-2.5 billion. This set of results signals a structural re-rating of Nokia's growth model, shifting from cyclical telecom equipment demand toward AI-driven data centre infrastructure expansion.
Key Points
- Quarterly AI and cloud orders reach €1bn, as hyperscaler demand extends delivery backlogs.
- Optical networks grow 20%, far outpacing IP networks at 3%—AI workloads push demand down to the fibre layer.
Actions
Pending intelligence enrichment.
