[Investopedia] A vote of confidence from AI chipmaker Nvidia sent shares of another tech company soaring Tuesday.Nvidia (NVDA) said it's making a $1 billion investment in Nokia (NOK) in addition to a new strategic partnership, sending shares of the Finnish tech company up nearly 23%.
With Tuesday's gains, they've added about three-quarters of their value in 2025.
Nvidia said it will purchase nearly 166.4 million new Nokia shares at $6.01 each, and become a 2.9% shareholder of the Finnish firm. Nokia said it would use the proceeds "to accelerate its strategic plans to advance trusted connectivity for the AI supercycle and other general corporate purposes."
Nokia, known for its early cellphones and mobile network products, has shifted its focus to cater to the booming AI data center market of late, and the investment by Nvidia marks its latest bet on AI infrastructure plays.
Nvidia has made history by becoming the first company ever to reach a $4 trillion market capitalization, reflecting its dominance in the AI industry.