Helsinki, Feb 23, 2026, 13:47 EET — Regular session
- Nokia shares climbed in Helsinki after the company highlighted a quantum-safe optical transport demonstration with Japan’s KDDI.
- This update drops while investors watch AI-driven data center networking demand closely.
- Eyes now turn to Nokia’s annual report, expected early March, with April results also on traders’ radar.
Nokia Oyj gained 0.5% to 6.43 euros in Monday’s Helsinki session after the network equipment giant announced a “quantum-safe” optical transport demo at KDDI’s Sakai Data Center in Japan. (TradingView)
For investors, the takeaway here: Nokia is pushing to link its optical networks segment with the AI data center boom, moving away from the old association with lumpy telecom cycles. That narrative matters, especially as 5G capex remains on pause among operators, forcing gear makers to chase after more reliable growth spots. (Reuters)
Nokia’s ADRs climbed roughly 2.2% to $7.77 in premarket trading in the U.S.
Nokia pulled off the demo with its 1830 Photonic Service Switch, tying in a security management server to pull off “at-speed” quantum-safe encryption linking data centers. That quantum-safe label? It’s shorthand for encryption built to survive even if quantum computers someday make current defenses obsolete. (Nokia Corporation | Nokia)
“This … sets a new benchmark for advanced AI-ready data center connectivity,” said Ron Johnson, Nokia’s senior vice president and general manager for Optical Networks, in the statement. Johnson also highlighted the move’s potential to cut “cybersecurity risks” tied to sensitive AI workloads. (Nokia Corporation | Nokia)
KDDI’s Tetsuo Mukai emphasized the need for “high levels of security and performance” when it comes to the infrastructure supporting AI. He noted the company will continue partnering with Nokia as data centers expand in a distributed pattern throughout Japan. (Nokia Corporation | Nokia)
Nokia’s move into optical tech throws it up against both dedicated optical players and its usual network competitors. Investors are sizing up if pivoting to AI-driven networking will make up for lagging orders from the legacy telecom crowd. (Reuters)
The uncertainty sticks around. Nordic rival Ericsson, facing what it describes as a prolonged telecoms spending slump, has been slashing jobs—a move underscoring the squeeze felt across the entire supply chain. (Reuters)
Even with a lab demo, there’s no promise of an actual order. The risk? Operators might simply file “quantum-safe” under long-term wish lists, holding back on spending while budgets are squeezed and pricing competition stays fierce.
All eyes shift to the week of March 2, when Nokia’s annual report is due, with investors looking for any new hints on strategy or board reshuffling ahead of the April 9 annual general meeting. The first-quarter numbers arrive April 23. (Nokia Corporation | Nokia)
