Nvidia (NVDA) has announced plans to invest $1 billion in Nokia (NOK) via a directed share issue, per a Tuesday announcement. Nokia will issue 166,389,351 new shares to NVIDIA, valued at $6.01 per share. The investment would total a 2.90% stake in Nokia.

Nvidia’s chips will be used to accelerate Nokia’s software for 5G and 6G networks. Nvidia will also explore ways to use Nokia’s data center technology in its AI infrastructure, the company said Tuesday. The announcement comes on the same day as Nvidia CEO Jensen Huang’s GTC event seminar.

Nokia is best known for selling mobile network parts, but has been pushing into data centers. That business is surging thanks to the growing demand for computing capacity from the artificial intelligence boom in the last two years. The move has paid off and helped Nokia beat Wall Street estimates last quarter. Nokia posted 9% YoY net sales growth in Q3 2025, with all business groups contributing.

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In the past few months, Nvidia has made several major plays in terms of investments, including OpenAI and Intel. Shares in Nokia stock rocketed over 20% on Tuesday following the announcement. Nvidia (NVDA), meanwhile, is up 1.7% at publishing time.