Why Nokia Could Be Among the Best Shares to Buy for Long-Term Growth in the AI Revolution

The telecommunications infrastructure sector is experiencing a fundamental shift as artificial intelligence becomes central to network operations. One company at the intersection of this transformation deserves serious consideration for investors seeking long-term growth opportunities. Nokia, a telecom equipment manufacturer that reinvented itself after the smartphone era, is now positioning itself as a critical player in the emerging AI-powered wireless infrastructure market.

The catalyst for renewed investor confidence comes from a significant partnership announced in October between Nokia and Nvidia, one of the world’s leading AI hardware companies. Under this collaboration, Nokia will integrate Nvidia’s AI capabilities into its cellular network infrastructure products, specifically developing what’s known as AI-RAN (radio access network) technology. This advancement aims to optimize existing 5G networks while laying the foundation for the transition to 6G technology. Nvidia’s formal announcement emphasized the significance: “The partnership marks the beginning of the AI-native wireless era, providing the foundation to support AI-powered consumer experiences and enterprise services at the edge.”

How Nvidia Partnership Is Driving Revenue Growth and Profit Expansion

The financial implications of Nokia’s AI positioning are compelling. Nvidia demonstrated its confidence by investing $1 billion in Nokia at $6.01 per share, a vote of confidence that reflects both companies’ conviction in the opportunity ahead. More importantly, analyst firm Omdia projects the RAN market will reach $200 billion by 2030—a massive expansion from today’s level.

Early signs suggest Nokia is already benefiting from this momentum. In the third quarter of 2025, the company reported revenue of 6.0 billion euros (approximately $7.0 billion), representing a 12% year-over-year increase. This acceleration is particularly notable when compared to the company’s first nine months of 2025, which showed only 4% growth. These numbers indicate that Nokia’s transformation strategy is gaining traction in the market.

The stock market has rewarded this progress decisively. Nokia’s share price has climbed more than 45% over the past year as investors recognize the company’s strategic pivot. While the current P/E ratio of 38 might appear elevated at first glance, the forward P/E of 18 suggests improving profitability ahead, pointing to a company potentially in the early stages of sustained expansion.

AI-Native Networks: Nokia’s Path to Capturing a Massive Market Opportunity

Nokia’s journey into AI infrastructure reflects a deliberate strategic evolution. Beyond the Nvidia partnership, the company has established collaborations with telecommunications operators like Verizon and defense contractor Lockheed Martin. Additionally, in early 2025, Nokia acquired Infinera, an optical networking company, for $2.3 billion—a move that expands its technological capabilities in the high-speed data transmission space.

These initiatives collectively position Nokia as a comprehensive provider of AI-ready telecommunications infrastructure. As wireless networks increasingly require intelligence to manage data traffic, security, and optimization, companies like Nokia that can deliver integrated solutions will likely capture substantial market share. The shift toward AI-native architecture in telecommunications isn’t a distant possibility—it’s already underway.

Building a Long-Term Winner: Nokia’s Valuation and Growth Prospects

For investors evaluating long-term portfolio positions, Nokia presents an interesting case study in industrial transformation. The company’s exposure to the anticipated $200 billion AI-powered networking market, combined with improving financial metrics and strategic partnerships, suggests growth potential that may be underappreciated by mainstream investors.

The comparison to historical market opportunities is instructive. Companies like Netflix and Nvidia that benefited from transformative technological shifts generated extraordinary returns for early investors—Netflix returning $464,439 on a $1,000 investment made in December 2004, and Nvidia returning $1,150,455 on a $1,000 investment made in April 2005. While past results never guarantee future performance, these examples illustrate how deeply investing in companies positioned at inflection points can compound wealth over decades.

Nokia’s current positioning suggests it could potentially offer similar long-term upside as the AI revolution in telecommunications accelerates. The company has moved beyond its crisis period to become a core infrastructure provider in an industry undergoing massive technological transformation. For investors building best shares to buy for long-term growth, telecommunications infrastructure companies capturing the AI opportunity warrant serious analysis.

The path forward appears clear: AI adoption in networks will accelerate, the market for infrastructure solutions will expand dramatically, and Nokia’s partnerships and acquisitions position it to capture meaningful share of this expansion. This represents the type of long-term opportunity that patient investors often seek but rarely find.