AI’s Big Moment: Why Nokia’s CEO Sees a 1990s-Style Boom — and Why We Shouldn’t Panic
The story in a nutshell
At a time when “AI bubble” discussions dominate headlines, Nokia’s CEO Justin Hotard is sounding a decidedly bullish note: he believes the current surge in artificial intelligence resembles the internet boom of the 1990s, and argues we should be more focused on long-term gains than short-term froth. ([Reuters][1])
Hook: A boom, not a bubble?
In an interview with Reuters, Hotard said:
“I fundamentally think we’re at the front end of an AI supercycle, much like the 1990s with the internet. Even if there’s a bubble, a trough, we’ll look to the longer-term trends. And right now, all those trends are very favourable.” ([Reuters][1])
That quote sets the tone: yes, there may be excesses, but the underlying momentum is real.
What’s going on
Here are the main points from the piece:
- Hotard compares the AI surge to the 1990s internet boom — suggesting we may be in the early innings of a structural transformation, not just a speculative spike. ([Reuters][1])
- He doesn’t completely dismiss bubble risk: he acknowledges that troughs or corrections are possible, but emphasises looking “past the cycle”. ([Reuters][1])
- Data-centre demand is rising sharply, fuelled by companies investing in infrastructure to support AI workloads. Hotard says Nokia is seeing growth “across the board” from large firms to smaller players in Europe. ([Reuters][1])
- Nokia recently reported quarterly earnings that beat expectations, helped significantly by optical and cloud-infrastructure demand (including from AI-driven data centres). ([Reuters][1])
- The shift toward AI is a big moment for Nokia — historically a mobile-network equipment company. The company bought Infinera (a U.S. optical-networking firm) and established a Technology & AI organisation led by a former Intel executive. ([Reuters][1])
Why this matters
- Structural change, not hype: If Hotard is right, the AI wave is more than just investor excitement — it has real infrastructure implications (data-centres, networking, cloud) that could drive growth for years.
- Opportunity for legacy players: Nokia is repositioning itself — this signals that companies with strong network/infra capabilities might play a bigger role in the AI era.
- Risk vs reward: Hotard’s nuanced view is useful: he doesn’t claim “no bubble”, but is encouraging focus on long-term structural growth. That kind of outlook may help temper panic in the market.
- Global implications: Investment in AI infrastructure is rising globally. As Nokia notes expansion across regions, this suggests the ripple effects are broad — not just Silicon-Valley hype.
- Investor mindset: For fund-managers and investors debating whether AI stocks are overvalued (a recent survey showed more than half of fund managers believe they are in a bubble) this is a counter-point. ([Reuters][1])
What to watch
- How quickly infrastructure investment (data centres, optical/fibre networking) scales: the pace will reveal whether the boom is real or mainly speculative.
- Nokia’s next earnings and guidance: will the AI-driven infrastructure segment hold up, accelerate, or slow?
- Broader market sentiment: if more CEOs echo Hotard’s caution-but-optimism on AI, it may shift the narrative away from “bubble” toward “build-out”.
- Regional growth: hot spots like Europe, Asia will be interesting to monitor (Hotard suggested strong demand in Europe) — infrastructure rollout may vary by geography.
- Technological bottlenecks: power, cooling, data-centre availability, fibre connectivity: these could constrain growth, or act as limiting factors.
Implications for you
If you’re an investor, technologist, business leader — take away: don’t dismiss AI as just hype, but stay aware of structural investment risks (timing, execution, competition). If you’re a tech professional or part of the infra-ecosystem (networking, fibre, cloud), this could signal rising opportunity. And if you’re simply watching the tech landscape for broader change: this interview suggests we’re early in something potentially big — not just a flash-in-the-pan.
Glossary
- Supercycle: A prolonged period of high growth in a particular industry or asset class, driven by structural change rather than just short-term cyclical factors.
- Data centre: A facility used to house computer systems and associated components, such as telecommunications and storage systems; essential for supporting large-scale AI computing.
- Optical/fibre networking: A communication technology that uses light to transmit data through glass or plastic fibres — vital for high-speed, high-volume data traffic (such as that generated by AI workloads).
- Bubble: A market situation in which asset prices inflate rapidly beyond their fundamental value, often followed by a sharp correction.
- Mobile-network equipment: Hardware infrastructure that supports mobile telecommunications (e.g., base stations, cell towers) — historically the core of Nokia’s business.
In summary
Nokia’s CEO Justin Hotard is betting that the AI wave is the next internet boom — structurally transformative, long-lasting — but he also tempers expectations by acknowledging troughs and bubbles can happen. The clarity of that message is significant: we may be witnessing the build-out phase of AI infrastructure, not just hype.
Source: Reuters article
| [1]: https://www.reuters.com/business/retail-consumer/nokia-ceo-compares-ai-surge-1990s-internet-boom-plays-down-bubble-fears-2025-10-23/ “Nokia CEO compares AI surge to 1990s internet boom, but plays down bubble fears | Reuters” |
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