Nokia has announced a new strategy based on artificial intelligence, aiming for an increase in operational profit of up to 60% by 2028.

Nokia presented on Wednesday a strategy focused on artificial intelligence, aiming to simplify the company's structure and increase annual operational profit by up to 60% over the next three years. Starting in 2026, the company will reorganize into two divisions: network infrastructure, dedicated to AI solutions and data centers, and mobile infrastructure, focused on traditional telecommunications.

Nokia targets an adjusted operational profit between 2.7 and 3.2 billion euros by 2028, compared to 2 billion reported last year. This strategy comes in response to the slowdown in 5G investments, and Nokia seeks to capitalize on the growing demand for AI solutions. The company also announced a dedicated defense unit and a plan to reduce operational expenses. However, the announcements were not well received by investors, with shares dropping by up to 6%. Analysts suggest that market expectations were higher, and the investments required for AI come with risks and uncertainties.