Nokia Q3 profit exceeds expectations, data center business becomes a new growth pillar

(1) Nokia, headquartered in Espoo, Finland, announced that driven by the investment boom in AI infrastructure, demand for data center network equipment has surged, and the company’s third-quarter profit exceeded analysts’ expectations. (2) The company disclosed on Thursday that adjusted operating profit for the period rose to 605 million euros (equivalent to 680 million US dollars), higher than the analyst consensus of 454 million euros; the performance growth was attributed to the delivery of some previously backlogged data center equipment orders. (3) Due to the slowdown in 5G network construction, demand from traditional telecom customers is expected to remain sluggish. CEO Justin Hotard is focusing on building data centers into a new growth pillar for Nokia. (4) Last year, he launched a strategy centered on the AI infrastructure boom and simultaneously began restructuring. Since then, Nokia has divested several businesses. The company stated that these adjustments are expected to drive double-digit growth in operating profit in the coming years. (5) The rapid expansion of AI infrastructure also brings challenges to equipment manufacturers, as supply shortages and rising prices affect components such as storage chips.