Nokia, headquartered in Espoo, Finland, announced that due to the boom in artificial intelligence infrastructure investment, demand for data center network equipment increased, and the company's profit for the third quarter exceeded analysts' expectations. The company announced on Thursday that adjusted operating profit for the period increased to €605 million, and analysts' average expectations were €454 million. This increase in performance was due to the delivery of part of the backlog of data center equipment orders. Demand from traditional telecom customers is expected to continue to be sluggish due to the slowdown in 5G network construction, and CEO Justin Hotard is focusing on making the data center a new pillar of growth for Nokia. Last year, he launched a development strategy based on the AI infrastructure boom and simultaneously initiated restructuring. Since then, Nokia has divested many businesses. Nokia said these adjustments are expected to drive double-digit growth in operating profits over the next few years. The rapid expansion of AI infrastructure has also brought challenges to equipment manufacturers. The supply of components such as memory chips is tight and prices are rising.

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