Nokia has announced that its CEO, Pekka Lundmark, will step down, with Justin Hotard set to take over the role on April 1.
Hotard currently serves as the executive vice president and general manager of Intel’s Data Center & AI Group, positioning him well for Nokia’s strategic shift toward artificial intelligence and data-driven infrastructure.
The leadership change comes as telecom equipment makers, including Nokia, face declining 5G sales and look to expand into high-growth areas such as AI. Nokia Chair Sari Baldauf highlighted Hotard’s strong track record in accelerating growth in technology companies, particularly in AI and data centre markets, which are crucial to Nokia’s future.
Following the announcement, Nokia’s shares rose 1.6% to €4.7, outperforming the broader Helsinki stock exchange, which gained 0.45%. Analysts at JPMorgan noted the transition was unexpected but suggested it had been planned for some time. They also pointed out that Hotard’s background in AI and data centres signals Nokia’s focus on these areas moving forward.
Lundmark, who took over in 2020, will remain as an advisor until the end of the year. Nokia revealed that succession planning began when Lundmark expressed his desire to step away from executive roles once the company’s repositioning was more advanced.
This leadership shift aligns with Nokia’s broader strategy of leveraging AI-driven infrastructure development. Last year, the company announced a $2.3 billion deal to acquire U.S.-based optical networking gear maker Infinera to tap into the growing AI-fueled investments in data centres.
Despite a 27.85% increase in its share price over the past year, Nokia remains significantly below its peak valuation from June 2000.
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