Nokia CEO Calls AI Boom a 'Supercycle' Rejects Bubble Fears as Demand Soars

Nokia CEO Justin Hotard has declared the dawn of an “AI supercycle,” likening the current surge in artificial intelligence investment to the internet boom of the 1990s. In a Reuters interview on October 23, 2025, Hotard dismissed concerns about an AI market bubble, emphasizing long-term growth trends fueled by rising demand for AI-driven infrastructure. His optimism contrasts with cautions from Amazon’s Jeff Bezos and OpenAI’s Sam Altman, who warned that overheated investor enthusiasm could lead to significant financial losses.

Hotard, who joined Nokia in April after leading Intel’s data centers and AI group, highlighted the unprecedented demand for data centers as companies race to build AI-supporting infrastructure. Nokia is capitalizing on this trend, reporting quarterly earnings that exceeded expectations, driven by strong sales in optical and cloud solutions, particularly to AI-focused data centers. The company’s recent acquisition of U.S.-based Infinera, a key player in intra-data center communications, has bolstered its position in this space.

Despite a Bank of America survey indicating that over half of fund managers believe AI stocks are in a bubble, Hotard remains confident. He noted that Nokia is seeing growth “across the board,” from major tech firms to smaller European players expanding their AI capabilities. The company’s strategic shift toward AI integration, including its core mobile networks and fiber solutions, marks its most significant transformation since selling its mobile phone unit in 2013.

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To accelerate its AI ambitions, Nokia established a dedicated Technology and AI organization in September, led by former Intel executive Pallavi Mahajan. Hotard emphasized that the company’s investments align with the escalating need for advanced infrastructure, positioning Nokia to thrive in what he sees as a transformative, long-term AI-driven market.

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