NVIDIA Corporation (NVDA.US) acquired 1 billion dollars in shares! Nokia Oyj Sponsored ADR (NOK.US) stock price soared in response.

NVIDIA Corporation (NVDA.US) plans to invest $10 million in Nokia Oyj Sponsored ADR (NOK.US) and intends to provide the telecommunications company with artificial intelligence computers for wireless networks. In response to this news, Nokia Oyj Sponsored ADR's stocks surged by 22.84% on Tuesday in the US stock market, and increased by over 3% after hours. According to statements released by both parties, Nokia Oyj Sponsored ADR will issue approximately 166 million new shares to NVIDIA Corporation at a price of $6.01 per share. As a result, NVIDIA Corporation will hold a 2.9% stake in Nokia Oyj Sponsored ADR. Both parties stated that NVIDIA Corporation's chips will be used to accelerate software development for 5G and 6G networks at Nokia Oyj Sponsored ADR, and NVIDIA Corporation will also explore ways to use Nokia Oyj Sponsored ADR's data center technology in its own AI infrastructure. Nokia Oyj Sponsored ADR is known for selling mobile network equipment, but the company has been expanding into the data center field. This business is growing due to the increasing demand for computing power driven by the AI boom. This move has been successful, helping Nokia Oyj Sponsored ADR exceed Wall Street expectations in the last quarter. The company, headquartered in Espoo, Finland, acquired Infinera for $2.3 billion earlier this year to expand its AI data center networking product portfolio. Nokia Oyj Sponsored ADR, which dominated the mobile phone market in the 1990s, gradually faded from the mainstream after losing market share and transitioning into a network service provider. CEO Justin Hotard is leading the Nordic company through a transformation, emphasizing its position as a supplier of a complete communication equipment portfolio (from 5G radios to fiber optic cables). It is worth noting that NVIDIA Corporation has been actively investing in recent months. The company stated that it will invest up to $10 billion in OpenAI and provide funding support to autonomous driving companies Wayve and Oxa, financial technology company Revolut, and AI company PolyAI. NVIDIA Corporation is also reportedly partnering with Deutsche Telekom AG to jointly build data centers in Germany. Some analysts and scholars have begun to compare the recent series of cross deals between NVIDIA Corporation and clients like Nokia Oyj Sponsored ADR to the cyclical trades before the bursting of the 1990s internet bubble. At that time, the practice of startups selling products to each other inflated growth expectations. NVIDIA Corporation CEO Jensen Huang stated in an interview on Tuesday that he invested in Nokia Oyj Sponsored ADR because he is "excited about the partnership with Nokia Oyj Sponsored ADR" and hopes to be "a part of the extraordinary success we create together." He described his decision to invest as "pretty smart." Under the cooperation arrangements, NVIDIA Corporation will provide Nokia Oyj Sponsored ADR with a new product - a programmable computer that can enable wireless communications, run AI processing, and manage mobile traffic simultaneously. Huang said at a NVIDIA Corporation event in Washington, "Nokia Oyj Sponsored ADR will work with us to integrate our technology and rewrite their software stack. America's telecom networks have not been built on American technology for a long time." Wireless communication networks are transitioning from hardware-based architectures to software-defined general-purpose computer architectures. NVIDIA Corporation stated that the next generation of wireless connectivity - 6G - will be characterized by applications of artificial intelligence. The company is working with Nokia Oyj Sponsored ADR to build devices using new software and chips developed for this market. NVIDIA Corporation stated that T-Mobile US will begin relevant trials next year. In a joint interview with Jensen Huang, Justin Hotard said he expects "full commercial production" to be achieved by 2027. The goal of Nokia Oyj Sponsored ADR is to bring data processing closer to end users to reduce data transmission delays. Justin Hotard called this shift a "fundamental reconstruction of the network" and said it "will accelerate AI-RAN (artificial intelligence wireless access network) innovation, putting AI data centers in your pocket." Justin Hotard emphasized that the partnership with NVIDIA Corporation is not an exclusive agreement, meaning that this chip giant can still sign agreements with competitors of Nokia Oyj Sponsored ADR like Telefonaktiebolaget LM Ericsson Sponsored ADR Class B. He said, "If we are all facing innovation pressures, must do our best, and the collaboration is not exclusive, then we will continue to compete and accelerate our pace." For months, European policymakers and tech executives have been calling for the EU to accelerate the establishment of its own AI ecosystem to catch up with American and Chinese competitors. Huang and other tech industry leaders have criticized Europe for moving too slowly in developing its infrastructure and not providing enough support for companies looking to deploy AI locally. During President Trump's first term, his administration proposed joint investments by the US and its allies in one of the two Western network equipment suppliers. Justin Hotard emphasized that NVIDIA Corporation's investment this time is not government-led. He said, "This is a collaboration between two private companies to build something we believe is beneficial for the entire ecosystem."