Helsinki, Finland – February 12, 2025 – Nokia has announced a major leadership transition with Justin Hotard, Intel’s executive vice president and general manager of Data Center & AI Group, being appointed as the new President and CEO, effective April 1, 2025. This move comes as the Finnish telecom giant looks to sharpen its focus on artificial intelligence (AI) and data center technologies, signaling a strategic shift for the company in an evolving market.
Pekka Lundmark, who has served as Nokia’s CEO since 2020, will step down from the role, but will continue to serve as an advisor to Hotard through the end of the year. Lundmark’s tenure saw Nokia transition into new areas of growth, but with a market increasingly dominated by AI-driven demands, the company now seeks new leadership to accelerate its innovation in these key sectors.
AI and Data Centers Take Center Stage for Nokia’s Future
Hotard, who has been at the helm of Intel’s AI and data center operations, brings significant experience to the table. His expertise in driving technological growth and innovation in these areas is aligned with Nokia’s ambitions to expand beyond traditional telecom gear sales, especially as demand for 5G equipment has slowed.
Nokia’s Chair, Sari Baldauf, expressed confidence in Hotard’s ability to lead the company into its next phase. “He has a strong track record of accelerating growth in technology companies along with vast expertise in AI and data center markets, which are critical areas for Nokia’s future growth,” Baldauf said in a statement.
As analysts have pointed out, this shift in leadership reflects Nokia’s strategic focus on the rapidly expanding AI and data center markets. According to JPMorgan analysts, the appointment of Hotard aligns with the company’s efforts to diversify its portfolio, considering the ongoing challenges in the telecom equipment sector.
Analysts See Strategic Shift Toward AI and Network Infrastructure
The leadership change at Nokia comes as no surprise to many market watchers. JPMorgan analysts noted that the transition seemed “in the works for some time,” with the appointment of Hotard signaling a clear shift toward AI and data center investments. The firm’s analysts highlighted the importance of these sectors for Nokia’s growth, which is increasingly driven by investments in network infrastructure, AI, and the digital transformation of data centers.
Inderes analysts echoed this sentiment, emphasizing that the CEO change represents a strategic push for Nokia’s Network Infrastructure unit. This division is seeing growing opportunities through its focus on AI integration and supporting the massive expansion of data centers needed to support the rise of AI.
Nokia’s recent $2.3 billion acquisition of US optical networking gear maker Infinera further underscores this focus. The deal positions Nokia to capitalize on the billions of dollars flowing into data centers to support the burgeoning AI sector.
A Year of Growth for Nokia, Despite Challenges
Nokia has seen positive growth in recent months, with its shares rising by 27.85% over the past year. However, the company’s stock remains down more than 90% since its peak in June 2000, reflecting the challenges the telecom equipment market faces. Nokia’s infrastructure business, which integrates AI technologies, plays a crucial role in building and maintaining communication systems, including data centers, servers, and routers.
Meanwhile, its mobile networks unit focuses on enabling mobile communication technologies, with a strong emphasis on the development and management of 5G networks.
What’s ahead?
As Hotard takes over as CEO, the direction for Nokia seems clear: the company is positioning itself to be a leader not only in telecommunications but also in AI and data center technologies. With this new leadership, Nokia aims to tap into the future of digital infrastructure and communications, securing a strong foothold in the evolving global market.
The appointment of Hotard is a strategic move to ensure Nokia’s competitive edge in the era of AI, further positioning the company to thrive in an increasingly interconnected world.
Read more: South Korea’s Top 10 Influential LinkedIn Voices to Follow
