“I fundamentally think we're at the front end of an AI supercycle, much like the 1990s with the internet,” Hotard said in an interview with Reuters. “Even if there's a bubble or a trough, we'll look to the longer-term trends—and right now, all those trends are very favourable.”
His comments come amid growing debate over whether the surge in AI investments is sustainable. A recent Bank of America survey revealed that over half of fund managers believe AI stocks are currently in bubble territory. Prominent figures such as Amazon founder Jeff Bezos and OpenAI CEO Sam Altman have also warned that overexuberant investor sentiment could lead to significant losses.
Despite these warnings, demand for data centres—the backbone of AI infrastructure—is rising sharply. Hotard, who previously led Intel’s data centre and AI group before joining Nokia in April, said the company is seeing “growth across the board,” with both large technology firms and emerging players expanding operations across Europe.
“Clearly, the incremental growth investment is driven by data centres,” he said. “It’s a huge step up in volume.”
Earlier on Thursday, Nokia reported quarterly earnings that beat market expectations, boosted by strong demand in its optical and cloud segments. The company noted that sales to AI-driven data centres—particularly following its acquisition of U.S. optical networking firm Infinera—had a 6% impact on quarterly sales within its network infrastructure business.
Nokia’s deepening commitment to AI represents its most significant strategic shift since selling its mobile phone unit in 2013. While mobile networks remain a core part of its business, the Finnish telecoms giant is now embedding AI capabilities into radio access, fibre networks, and cloud operations to enhance efficiency and performance.
In 2024, Nokia accelerated this transformation by establishing a dedicated Technology and AI organisation, led by Chief Technology Officer Pallavi Mahajan, another former Intel executive. The move underscores the company’s intent to position itself at the heart of the AI-driven connectivity revolution.
As Hotard sees it, even if short-term volatility emerges, the structural shift toward AI is irreversible: “The long-term fundamentals are strong,” he said. “We’re just at the beginning of what’s to come.”