Nokia’s AI-driven radio access networks fuel stock rally as demand for real-time AI inference outpaces model training growth.
Nokia’s stock has rallied 130% over the past year, driven by its artificial intelligence radio access networks (AI-RAN) technology. The innovation addresses latency issues in AI data centers, enabling micro-data centers for real-time AI inference, a segment growing faster than model training demand.
The company reported 4% year-over-year revenue growth in Q1, but its AI and cloud segment surged 49%. Optical networking hardware for AI data centers contributed to the rally, though AI-RAN is positioned as the next major growth driver.
Nvidia invested $1 billion in Nokia last October to support AI-native 5G-advanced and 6G network upgrades, signaling strong industry confidence in the technology’s potential.