Nokia CEO Justin Hotard says artificial intelligence (AI) is fueling a long-term growth wave reminiscent of the internet boom of the 1990s, though he downplayed fears of an impending bubble.
Hotard’s comments come as debate intensifies over whether the current surge in AI investment can be sustained.
“I genuinely believe we’re at the beginning of an AI supercycle, much like the internet era of the 1990s,” Hotard told Reuters. “Even if there’s a temporary bubble or downturn, the long-term trends remain highly positive.”
A recent Bank of America survey found that more than half of fund managers see AI stocks as being in bubble territory.
Industry leaders, including Amazon founder Jeff Bezos and OpenAI CEO Sam Altman, have also warned that excessive investor enthusiasm could result in significant losses.
Despite such concerns, demand for data centres continues to soar as companies race to expand the infrastructure required to power AI technologies.
Hotard, who previously led Intel’s data centres and AI division before joining Nokia in April, said the company is witnessing broad-based growth—from major tech corporations to smaller firms expanding across Europe.
“The key driver of incremental growth is clearly data centres,” he noted. “We’re seeing a major increase in volume.”
Earlier on Thursday, the Finnish telecom equipment maker reported quarterly earnings that exceeded market expectations, boosted by strong demand for optical and cloud solutions, including sales to AI-driven data centres following its acquisition of U.S. optical networking firm Infinera.
Nokia’s foray into AI represents its most significant strategic transformation since selling its mobile phone division in 2013.
While mobile networks remain central to its business, the company is increasingly integrating AI into its radio access and fibre network operations.
Last year, Nokia completed the acquisition of Infinera, one of the largest providers of intra–data centre communications solutions.
In September, it also launched a new Technology and AI division led by Chief Technology Officer Pallavi Mahajan, a former Intel executive, to accelerate its AI innovation and implementation.
