Nokia's strategic shift from its legacy mobile business to supplying infrastructure for the artificial intelligence boom has propelled its stock, with shares surging approximately 90% this year. The Finnish company now provides essential equipment like switches and routers that manage data traffic within AI data centers, a role described as the "backbone of the AI economy" by CEO Justin Hotard.

This pivot positions Nokia to capitalize on the massive build-out of data centers by tech giants such as OpenAI, Meta Platforms, and Alphabet. Investors are rewarding Nokia for this new identity, moving past its stagnant mobile operations. However, this reliance on the AI sector also introduces exposure to the volatility of the technology market and potential supply-chain challenges.

The company's success is now closely tied to the continued growth and adoption of AI technologies. While the market enthusiasm is evident, analysts caution that Nokia's momentum hinges on the uncertain future of AI itself.