TLDR: Nokia CEO Justin Hotard likens the current surge in artificial intelligence to the transformative internet boom of the 1990s, declaring the world is at the cusp of an ‘AI supercycle.’ Despite market concerns about a potential bubble, Hotard emphasizes the long-term growth trends driven by AI, highlighting Nokia’s strategic focus on AI, 5G, 6G, and its strong third-quarter financial results bolstered by AI-driven data center demand.
Nokia CEO Justin Hotard has drawn a significant parallel between the current explosion of interest and investment in artificial intelligence (AI) and the internet boom of the 1990s, asserting that the world is entering an ‘AI supercycle.’ In an interview with Reuters on October 23, 2025, Hotard stated, “I fundamentally believe we are at the beginning of an AI supercycle, much like the internet in the 1990s. Even if there is a bubble, a downturn, we will look at the long-term trends. And right now, all those trends are very favorable.” This perspective comes amidst a growing debate regarding the sustainability of AI investment, with a recent Bank of America survey indicating that over half of fund managers believe AI stocks are in a bubble. Prominent figures such as Amazon founder Jeff Bezos and OpenAI CEO Sam Altman have also cautioned against excessive investor excitement potentially leading to significant losses.
However, Hotard, who previously led Intel’s data centers and AI group before joining Nokia in April, remains bullish on the long-term trajectory. He points to the sharply rising demand for data centers as companies globally race to build the necessary infrastructure to support AI processing power. Nokia is witnessing this growth “across the board,” from major tech firms to smaller players expanding in Europe. Hotard emphasized, “Clearly the incremental, growth investment is driven by data centres. It’s a huge step up in volume.”
Nokia’s strategic pivot towards AI is evident in its recent performance and initiatives. The Finnish telecoms equipment maker reported a solid third-quarter performance for 2025, with net sales rising 12% year-on-year (9% on a constant currency and portfolio basis). The company’s comparable operating profit reached €435 million ($505 million), with a free cash flow of €0.4 billion and a net cash balance of €3 billion. Hotard noted that AI and cloud-related customers now account for 6% of Nokia’s total net sales and a significant 14% of its Network Infrastructure revenues. The optical segment was a standout driver of growth, increasing by 19% during the period, largely fueled by large-scale data transport requirements from AI and cloud service providers. This growth was further bolstered by Nokia’s acquisition of U.S. optical networking firm Infinera last year.
Also Read:
- Intel’s Q3 2025 Revenue Surges Amidst AI-Driven Demand
- Global Artificial Intelligence Market Poised for Exponential Growth, Projected to Exceed $2.4 Trillion by 2032
Nokia’s push into AI represents its most significant strategic shift since selling its mobile phone unit in 2013. While mobile networks remain its core business, the company is actively weaving AI into various areas, including radio access and fiber networks. In September, Nokia established a dedicated Technology and AI organization, led by newly-appointed Chief Technology Officer Pallavi Mahajan, a former Intel executive, to accelerate its AI efforts. The company is set to further outline its strategic direction and growth initiatives at its Capital Markets Day in New York on November 19, 2025, where it plans to unveil its roadmap for capitalizing on the AI-driven connectivity boom.
