Nokia's AI Boost: Profit Surges Past Expectations

Nokia has announced a stronger-than-anticipated rise in its quarterly comparable operating profit, with an 18% jump to 434 million euros for the second quarter of 2026. This performance exceeded the average analyst estimate of 382 million euros. The company's strategic shift towards providing fibre optic cables for AI data centers has proven effective, as net sales from AI and cloud customers doubled to 446 million euros.

Despite this positive trend, Nokia, like competitor Ericsson, is experiencing the impact of increased memory chip prices. This surge in costs is attributed to the high demand from AI companies, which are dominating the chip market. CEO Justin Hotard noted that customer demand remains robust, leading to longer-term orders, although supply constraints continue to be a significant industry challenge.