Key Takeaways

• Nokia shares surged on Tuesday after Nvidia announced plans to acquire a $1 billion stake in the Finnish tech giant.

• The deal represents Nvidia’s latest move to expand its footprint in AI infrastructure investments.

A strong vote of confidence from AI powerhouse Nvidia (NVDA) sent shares of Nokia (NOK) soaring on Tuesday. Nvidia revealed it will invest $1 billion in Nokia and form a strategic partnership, propelling Nokia’s stock up 25% in midday trading. With this latest rally, Nokia’s shares have now gained nearly 80% in 2025.

Under the agreement, Nvidia will purchase 166.4 million new Nokia shares at $6.01 each, becoming a 2.9% shareholder in the company. Nokia said the funds will help “accelerate its strategic initiatives to strengthen trusted connectivity for the AI supercycle and support other corporate objectives.”

Once known primarily for its early mobile phones and network equipment, Nokia has increasingly pivoted toward the AI-driven data center market. Nvidia’s investment underscores its ongoing commitment to companies shaping the future of AI infrastructure.

Why This Matters

Nvidia’s billion-dollar stake in Nokia is the latest step in its broader strategy to build a robust AI ecosystem. The sharp rise in Nokia’s stock highlights Nvidia’s growing market influence, as investors increasingly follow its lead in identifying high-potential AI plays.

Other companies that Nvidia has invested in include CoreWeave (CRWV), a cloud computing provider for AI, and Arm (ARM), a major AI chip designer. As of June, CoreWeave represented the largest holding in Nvidia’s equity portfolio, with 24.3 million shares—roughly a 7% stake—according to regulatory filings.

Both Arm and CoreWeave have enjoyed major rallies in 2025, with Arm shares up over 40% and CoreWeave’s stock more than tripling since its March IPO.

Meanwhile, Nvidia’s own shares rose more than 4%, trading near $200 and heading toward a record high after CEO Jensen Huang delivered a keynote at the company’s developers conference in Washington, D.C., highlighting its latest AI innovations.