Finnish telecommunications giant Nokia has announced a major leadership shift, appointing Justin Hotard, Intel’s AI and data center chief, as its new President and CEO. Hotard will replace Pekka Lundmark, who has led the company since 2020 and will step down on March 31, 2025.
The decision marks a strategic move by Nokia to capitalize on the growing influence of artificial intelligence in the tech industry.
Leadership Change and Nokia’s AI Focus
Lundmark, 61, expressed his desire to step away from executive roles and focus on board positions. “I want to move on from executive roles to work in a different capacity, such as a board professional,” he stated.
Hotard, born in 1974, currently serves as Executive Vice President at Intel and has extensive experience in AI and data center infrastructure. His appointment highlights Nokia’s increasing focus on AI-driven solutions and network development.
“I am excited to get started and look forward to continuing Nokia’s transformation journey to maximize its potential for growth and value creation,” Hotard said.
Market Response and Strategic Direction
The leadership change follows Nokia’s 89% rise in net profit for 2024, after facing a downturn in 5G equipment demand in North America.
Last year, Nokia announced plans to cut up to 14,000 jobs as part of restructuring efforts. However, a recent surge in sales, particularly in India and North America, has renewed optimism in the company’s future.
Analysts believe Hotard’s background in AI and data centers signals Nokia’s shift away from traditional mobile networks toward new technology infrastructure and AI investments.
“Nokia’s longer-term growth prospects in mobile appear more modest compared to Network Infrastructure,” said Atte Riikola, an analyst at Finnish market research firm Inderes.
Nokia’s Future Under Hotard
Nokia Chairwoman Sari Baldauf praised Hotard’s track record in technology leadership, particularly in AI and data center expansion. She also noted his strong understanding of the U.S. market, a crucial area for Nokia’s growth.
“The U.S. is an important market for us,” she emphasized during a press conference.
Under Lundmark, Nokia re-established its leadership in 5G radio networks and strengthened its cloud-native core network capabilities.
Following the announcement, Nokia’s share price rose 2% to €4.76 ($4.92) in midday trading on Monday, reflecting investor confidence in the company’s new direction.
