Nvidia’s $1 Billion Nokia Bet Was Worth About $2.2 Billion by June. Is 6G the Hidden AI Trade?

Investors gained nearly $1 billion in Nvidia's Nokia investment by mid-year, but the real opportunity lies in the potential of AI-RAN technology. The partnership aims to advance artificial intelligence from data centers into mobile networks, paving a path towards 6G. Nvidia envisions the network itself as accelerated computing infrastructure, allowing telecom operators to leverage network capacity for AI workloads.

This could improve telecom margins and create recurring software opportunities for Nokia. However, timing and standards pose challenges to near-term revenue realization. The June valuation of the stake stood at $2.2 billion, with Nvidia's ownership increasing to 285 funds from 275 in the second quarter. Despite the partnership's potential, investors should be cautious, as commercial deployment and returns are yet to be determined.