Snapshot
- Ticker: NOK (NYSE, ADR)
- Bucket: AI Connectivity & Optics
- Q1 2026 position: 2,481,947 ADRs, $19,954,854 — 0.40% of 13F (#48, outside the top 20); new position this quarter
- HQ: Espoo, Finland
- What it does: Telecom network equipment — mobile RAN, fixed, and (post-Infinera) a top-tier optical networking franchise increasingly sold into AI data centers.
Business Overview
Nokia closed its acquisition of Infinera on February 28, 2025, vertically integrating optical components, coherent DSP capability and a hyperscaler-facing optical systems footprint — explicitly framed as scaling “to power the data center revolution.” The transformation is showing up in the numbers: Q1 2026 comparable revenue grew 3% y/y (4% constant currency) to €4.5B, but Optical Networks grew 12% on AI/cloud demand in the Americas, revenue from AI & Cloud customers surged 49%, and the company booked €1B of orders from that segment in the quarter. Product-wise, Nokia has launched 800G ZR/ZR+ coherent pluggables and AI-native switching platforms (7220 IXR).
In October 2025, NVIDIA invested $1 billion in Nokia tied to AI-RAN and AI networking collaboration — a strategic endorsement of Nokia’s role in AI-era network infrastructure.
Why Atreides Owns It
This is a new Q1 2026 position and a direct extension of the fund’s biggest theme: AI connectivity and optics, where Atreides’ largest equity longs (Ciena, Lumentum, Coherent, Astera Labs, Credo) already sit. The Infinera angle is the key — Atreides gets exposure to coherent optics and data-center interconnect demand through a conglomerate still valued like a slow telecom-equipment vendor, with the legacy RAN business obscuring an optical franchise growing double digits on hyperscaler spend. The NVIDIA investment and the 49% AI/cloud revenue growth supply the re-rating catalyst. At 0.40% it is sized as a starter/option on that sum-of-the-parts story rather than a core holding.
Position History
| Quarter | Type | Shares/Notional | Value | % of 13F |
|---|---|---|---|---|
| Q4 2024 | — | not held | — | — |
| Q1 2025 | — | not held | — | — |
| Q2 2025 | — | not held | — | — |
| Q3 2025 | — | not held | — | — |
| Q4 2025 | — | not held | — | — |
| Q1 2026 | Common | 2,481,947 | $19,954,854 | 0.40% |
First appearance in the 13F — initiated after the Infinera integration year and the NVIDIA investment, i.e., after the AI-optics pivot was visible in reported numbers.
Risks
- Conglomerate drag: Mobile Networks remains the majority of revenue and is low-growth/competitive (Ericsson, Huawei); optical strength can be diluted at the group level.
- Integration risk: Infinera synergy capture and component-to-system vertical integration are still in progress.
- Hyperscaler order lumpiness: the €1B AI/cloud order book is concentrated among few customers.
- Currency/ADR layer: EUR reporting and ADR structure add noise for a US 13F position.
Sources
- https://www.nokia.com/newsroom/nokia-completes-acquisition-of-infinera-to-create-innovation-powerhouse-in-optical-networks-with-the-scale-to-power-the-data-center-revolution/
- https://techblog.comsoc.org/2026/04/23/analysis-nokias-strong-growth-in-optical-networks-and-ai-network-infrastructure/
- https://www.sdxcentral.com/news/nokia-goes-all-in-on-optics-as-infinera-bet-sparks-20-revenue-surge/
- https://www.igorslab.de/en/nokia-reports-ai-boost-after-nvidia-partnership-the-former-mobile-phone-giant-is-once-again-profiting-from-the-networks-of-the-future/