Nokia’s Chief Executive Officer, Justin Hotard, says artificial intelligence is propelling a long-term growth cycle reminiscent of the internet explosion of the 1990s, describing it as an “AI supercycle” that will redefine global technology infrastructure for years to come.
“I fundamentally think we’re at the front end of an AI supercycle, much like the 1990s with the internet,” Hotard said in an interview with Reuters. “Even if there’s a bubble, a trough, we’ll look to the longer-term trends. And right now, all those trends are very favorable.”
Hotard’s optimism comes at a time when investors are sharply divided over whether the AI boom is sustainable. A recent Bank of America survey showed that more than half of global fund managers now believe AI-related stocks are in a bubble. Tech luminaries such as Amazon founder Jeff Bezos and OpenAI CEO Sam Altman have also issued warnings that the current wave of investor excitement could result in major financial losses once the market corrects.
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“When bubbles happen, smart people get overexcited about a kernel of truth. Are we in a phase where investors as a whole are over-excited about AI? My opinion is yes,” said Altman.
Still, Hotard insists the fundamentals of AI growth are strong, pointing to a surge in data center demand as companies worldwide scramble to build infrastructure capable of handling the computing power that AI applications require.
“Clearly the incremental, growth investment is driven by data centers,” he said. “It’s a huge step up in volume.”
Hotard, who joined Nokia in April after leading Intel’s data centers and AI group, said the company is witnessing a surge in orders from both large technology firms and emerging players across Europe.
“We’re seeing growth across the board,” he said.
Nokia’s renewed focus on AI comes as the Finnish telecom equipment maker reported quarterly earnings on Thursday that exceeded market expectations, buoyed by robust demand for its optical and cloud products. Much of this momentum has been linked to sales tied to AI-driven data centers following its acquisition of U.S.-based optical networking firm Infinera.
The acquisition of Infinera marks a key milestone in Nokia’s transformation—its most significant strategic pivot since exiting the mobile phone market in 2013. While mobile networks remain the company’s backbone, it is now integrating AI into core operational areas such as radio access, fiber optics, and network automation.
Last year, Nokia established a dedicated Technology and AI organization led by its newly appointed Chief Technology Officer, Pallavi Mahajan, another former Intel executive. The unit’s creation signals Nokia’s intent to accelerate the development of next-generation networking tools designed to optimize AI traffic and energy efficiency.
Analysts believe Nokia’s repositioning could be timely. The explosion in AI applications—from large language models to edge computing—has sparked record demand for high-speed data transfer, low-latency connectivity, and cloud optimization technologies. These trends play directly into Nokia’s traditional strengths in telecommunications infrastructure and optical networking.
The company’s strategy aligns with a broader shift underway in the global tech industry. From the United States to Asia, hyperscale firms such as Microsoft, Amazon Web Services, and Google are investing billions in data center expansion, driving up demand for optical transport systems and fiber technologies—areas where Nokia has a competitive footprint.
Still, the AI boom has prompted growing debate over sustainability. The sector’s skyrocketing valuations, which have propelled companies like Nvidia into trillion-dollar territory, have stirred comparisons with the dot-com era—when enthusiasm outpaced actual profitability.
Hotard, however, maintains that, unlike the 1990s, today’s AI growth is underpinned by tangible industrial adoption and real-world use cases spanning telecoms, healthcare, logistics, and cloud computing.
He believes the demand is not theoretical, given the growing deployment of infrastructure across multiple industries.
Nokia’s move into AI represents both a strategic hedge and a bold bet on where future telecommunications demand will converge. The company, by embedding AI into its networking solutions, hopes to improve automation, reduce energy consumption, and strengthen its position in a global race increasingly defined by intelligent infrastructure.