Nokia published third-quarter results on 22 October that beat analyst estimates. Network Infrastructure sales rose 15% at constant currency, with IP networks up 43% and optical networks up 18%. Sales to artificial intelligence and cloud customers reached 631 million euros, up 123%, with 1.5 billion euros of new orders. The company expects 25% to 30% growth for its optical and IP networks in 2027.

What it means: Nokia is a good example of how the artificial intelligence boom benefits companies that do not make chips. Large data centres need huge amounts of optical links and routers so processors can talk to each other, and the European company has been strengthened there by its Infinera acquisition. Growth in sales to hyperscalers offsets a traditionally slow business, mobile networks, where telecom operators invest more cautiously. For Europe it matters that a European supplier is gaining share in critical infrastructure at a time when technological autonomy is hotly debated. For Greek businesses the effect is indirect but real: data centre demand for optical equipment strains supply, which can affect lead times and costs for telecom projects and private networks. Companies planning network upgrades would do well to schedule procurement earlier. The orders also show that AI infrastructure investment continues despite the ongoing debate about whether spending on data centres has run ahead of real demand.

Read the original on Nokia (GlobeNewswire)

Related service: Custom software

Related stories