Nokia reported a significant rise in AI and cloud sales during the second quarter, with these segments growing 105% compared to the previous year. This surge helped the company exceed profit estimates and demonstrated expanding spending beyond chips and hyperscale data centers into broader network infrastructure.
The Helsinki-based telecommunications equipment provider recorded a total net sales increase of 9% on a constant-currency basis. Network Infrastructure revenues grew notably, with Optical Networks climbing 20% and IP Networks 16%, reflecting stronger demand for advanced transport, routing, and optical systems essential to supporting AI workloads and massive data movement.
These gains highlight the strategic importance of Nokia’s optical, IP, and data center switching products as key tools for customers aiming to realize returns on AI investments. Margins also improved, with the comparable gross margin rising from 45.3% to 46.0%, while reported gross margin increased to 44.6% from 44.0%. Despite restructuring charges, comparable operating profit advanced, pointing to genuine operational strength rather than one-time accounting effects.
Building on momentum from the first quarter, when AI-related sales helped to push Nokia’s stock to a 16-year high, the latest results confirm that AI infrastructure spending is broadening throughout the telecommunications supply chain. This trend extends beyond headline chipmakers to vendors providing the vital network backbone.
The 105% increase in AI and cloud sales alongside double-digit growth in optical and IP network equipment stands as strong evidence of a durable investment cycle. Carriers and large enterprises appear to be committing capital to upgrade their infrastructure layers to meet AI-driven demands. The key question remains whether this spending pattern will sustain in the coming quarters.