Nokia CEO likens current AI surge to the 1990s internet boom, emphasizing a long-term growth trend

Nokia’s CEO, Justin Hotard, Intel’s former executive vice president and general manager, and data center & AI group , is bullish about his firm and the growing AI sector that has led the company to a strong ￰0￱ about the fears of an AI “bubble” in a Reuters interview, he likened the current AI boom to the 1990s internet revolution and tagged it the “front end of an AI supercycle.” His comment comes as the company revealed its adjusted profit for the third quarter beat estimates. Nokia’s CEO believes AI is a driver of long-term growth Nokia’s CEO Justin Hotard is not bothered by fearmongers who insist there is a potential bubble forming in the AI sector, and his recent statements imply he thinks the journey for that sector is only just beginning.

Hotard, downplaying concerns about a potential bubble, said artificial intelligence is driving a long-term growth trend that reminds him of the internet boom from the ￰1￱ remarks come as debate continues over the sustainability of the surge in AI investment . “I fundamentally think we’re at the front end of an AI supercycle, much like the 1990s with the internet,” Hotard said in his interview with Reuters . “Even if there’s a bubble, a trough, we’ll look to the longer-term ￰2￱ right now, all those trends are very favourable.” His positive outlook has not been reflected in recent surveys, with one Bank of America survey from this month showing that a considerable number of fund managers believe AI stocks are in a ￰3￱ founder Jeff Bezos and OpenAI CEO Sam Altman seem to fall in with the naysayers as well as they have cautioned that investor excitement could be preceding major ￰4￱ the element of the unknown, demand for data centers continues to rise sharply as companies race to build the infrastructure needed to support ￰5￱ cashes in on Big Tech interest in the AI industry Hotard’s comments on the AI bubble come after it reported quarterly earnings that beat market expectations on ￰6￱ to the company, this is because of strong optical and cloud demand, including sales to AI-driven data centers after its acquisition of ￰7￱ networking firm ￰8￱ claims artificial intelligence and cloud customers had an impact of up to 6% on the group’s latest quarterly sales as network infrastructure piggybacked on data center ￰9￱ Finnish company reported €435 million ($505 million) in adjusted operating profit for the quarter, surpassing the average analyst estimate of €324 ￰10￱ was even though Nokia cut its full-year profit guidance in July, after taking damage from the Trump administration’s tariff wars and currency ￰11￱ company now expects operating profits of €1.6 billion to €2.1 billion for ￰12￱ how Nokia’s push into AI, its biggest shift since selling its mobile phone unit in 2013, has benefitted the company, it is no surprise Hotard is downplaying fears of a bubble.

However, he is also right in implying the future is not set in ￰13￱ now, mobile networks remain Nokia’s core business, but the company has been weaving AI into various areas of production, including radio access and fibre ￰14￱ took over the company in April and is expected to present his strategy for growth at a capital markets day next ￰15￱ your free seat in an exclusive crypto trading community - limited to 1,000 members.