Nokia’s First-Quarter Profit Beats Forecasts as AI Data Center Pivot Gains Traction

Nokia is shifting from traditional telecom equipment toward AI data centers and high-speed connectivity, integrating AI computing into telecommunications infrastructure. With telecom operators slowing capital spending, the pivot could determine whether the company can tap data center demand for a new source of growth. It could also create opportunities for Taiwan’s co-packaged optics supply chain.

Nokia posted adjusted operating profit of €281 million in the first quarter of 2026, beating market expectations and indicating that its AI data center connectivity strategy is beginning to show in its financial results. The company also secured a $1 billion investment through a partnership with NVIDIA, and 10 customers have confirmed their participation in the related AI telecom infrastructure program.