NVIDIA partners with Nokia to develop AI-native mobile networks

WASHINGTON - NVIDIA (NASDAQ:NVDA), the semiconductor giant with a market capitalization of $4.71 trillion and an impressive 71.55% revenue growth in the last twelve months, announced a strategic partnership Tuesday with Nokia to develop AI-powered radio access network (RAN) technology for next-generation mobile networks, with NVIDIA also investing $1 billion in Nokia at $6.01 per share.

The collaboration aims to enable the deployment of AI-native 5G-Advanced and 6G networks, with T-Mobile U.S. (NASDAQ:TMUS) set to begin testing the technology in 2026 as part of its 6G development process. According to InvestingPro, NVIDIA maintains excellent financial health with an overall score of 3.77, supported by a strong current ratio of 4.21, indicating robust capability to fund such strategic initiatives.

NVIDIA introduced its Aerial RAN Computer Pro (ARC-Pro), described as a 6G-ready telecommunications computing platform that combines connectivity, computing, and sensing capabilities. Nokia will integrate this technology into a new AI-RAN product line within its portfolio.

Dell Technologies (NYSE:DELL) will provide PowerEdge servers to power the new AI-RAN solution, according to the press release.

The partnership addresses growing mobile AI traffic demands, with the companies noting that nearly 50% of ChatGPT’s 800 million weekly active users access the service via mobile devices.

"Telecommunications is a critical national infrastructure – the digital nervous system of our economy and security," said Jensen Huang, NVIDIA’s founder and CEO, in the announcement.

Nokia’s President and CEO Justin Hotard stated the partnership "will accelerate AI-RAN innovation to put an AI data center into everyone’s pocket."

The companies indicated the AI-RAN market represents a significant opportunity within the broader RAN market, which they expect to exceed $200 billion cumulatively by 2030, citing analyst firm Omdia. Trading at a P/E ratio of 55.25 and near its 52-week high, NVIDIA appears overvalued according to InvestingPro’s Fair Value analysis. Discover 18 additional key insights and comprehensive valuation metrics for NVIDIA with an InvestingPro subscription, including exclusive access to the detailed Pro Research Report covering what really matters about this AI leader.

The investment is subject to customary closing conditions, according to the statement.

In other recent news, Nvidia has been in the spotlight with several significant developments. President Donald Trump announced an upcoming meeting with Nvidia CEO Jensen Huang, highlighting the company’s prominence in the tech industry. In the realm of financial analysis, DA Davidson reiterated its Buy rating on Nvidia stock, maintaining a price target of $210, with a focus on the growing demand for artificial intelligence compute capabilities. Meanwhile, Uber announced a partnership with Nvidia to advance autonomous vehicle development, utilizing Uber’s extensive driving data to train foundational AI models.

Qualcomm has also made headlines by entering the datacenter AI market, with plans for two rack scale solutions set for release in 2026 and 2027. The company secured a deal with HUMAIN, the Saudi sovereign AI initiative, for 200 MW of capacity, further emphasizing its commitment to expanding in this sector. Additionally, SuperX AI Technology Limited announced a strategic investment in MicroInference Pte. Ltd., a partner in the Nvidia network, to bolster its supply chain for advanced AI solutions. This move aims to enhance AI capabilities across the Asia Pacific region. These recent developments highlight the dynamic and evolving landscape in the technology and AI sectors.

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