Nokia's Nvidia Alliance Tested as Chip Giant's 6G Ambitions Spark Sell-Off
12.06.2026 - 07:53:03 | boerse-global.de
The investment bank JPMorgan is pushing back against fears that Nvidia's push into 6G radio chips threatens Nokia. Analysts there argue the Finnish telecom equipment maker's existing collaboration with the US chip giant actually gives it an edge over rivals like Ericsson.
The sell-off was triggered by a flash note from ABG Sundal Collier, which warned that Nvidia is developing a chip specifically for 6G radio units. If widely adopted, such a chip would squeeze margins for network equipment makers. Nokia's stock dropped 4.6% on the news, while Ericsson lost 5.8%. ABG itself later softened its stance, noting it is still too early to sound serious alarms.
JPMorgan instead sees the development as a potential catalyst. Nokia and Nvidia already have deep ties: in October 2025, the two companies announced a strategic partnership under which Nvidia invested $1 billion in Nokia. That deal is focused on advancing AI-driven network software on Nvidia's platform, with Nokia's anyRAN software being tested on Nvidia's GPU-accelerated infrastructure. Operators including T-Mobile, Indosat, SoftBank, BT, NTT DOCOMO and Vodafone are involved in the trials.
Should investors sell immediately? Or is it worth buying Nokia?
The key strategic question is whether Nvidia will remain a partner or become a competitor. Radio units at the mast have long been dominated by Nokia, Ericsson and Huawei, while Nvidia has operated mainly at the server level. Shifting into radio chips would mark new territory, and experts question whether GPU-class processing power will even be necessary at the mast, or if specialized chips will remain more efficient.
The stock's recent performance explains the market's sensitivity. Nokia closed at 12.20 euros, roughly 18% below the 52-week high of 14.97 euros hit in early June. Despite the pullback, the shares are still up over 119% year-to-date. With a volatility reading near 83%, the market is aggressively repricing the AI potential in telecoms, but the focus is shifting from pure euphoria to concrete revenue delivery.
Investors are now reassessing how much profit from the Nvidia partnership will flow back to Nokia shareholders. The company must demonstrate that the collaboration generates tangible sales growth. If successful, the alliance could serve as a shield against new entrants like Nvidia itself. But if Nvidia's chip ambitions gain traction, the relationship could turn from asset to liability.
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