Nokia Surges with AI-Fueled Growth, Beats Market Expectations in Q3

Nokia exceeded market expectations in Q3, reporting strong profits due to optical and cloud demand, including AI data centers. The firm's shares rose 10.6%, adding 3 billion euros in value. Despite U.S. challenges, Nokia saw a 12% sales increase, driven by optical networks and cloud services, with AI as a key contributor.

Nokia surpassed market expectations in the third quarter, driven by robust optical and cloud demand, notably in AI-focused data centers following its Infinera acquisition.

The company's shares surged 10.6% to 5.2 euros by 0717GMT, their highest in three years, adding 3 billion euros to its market value. Analysts had predicted a 342 million euros profit, yet Nokia reported 435 million euros.

Despite challenges such as U.S. tariffs, a market slowdown, and a weaker dollar leading to a July profit warning, Nokia's Q3 net sales increased 12% to 4.83 billion euros, exceeding forecasts. Growth in Optical Networks and cloud services propelled these figures, with AI playing a significant role.

(With inputs from agencies.)