Pekka Lundmark, Nokia’s CEO since 2020, will step down on March 31, 2024. Justin Hotard, who currently oversees Intel's AI and data center group, will step in as CEO on April 1, 2024.
Lundmark, who’s spent over 20 years leading major companies, says it’s time for him to move into a different role—like a board position. "I want to move on from executive roles to work in a different capacity," he shared.
Under Lundmark’s leadership, Nokia managed to bounce back from challenging times, especially in its 5G business. But with the rise of AI and other technologies, the company now needs to shift gears.
Justin Hotard is no stranger to the tech world. He’s been in leadership roles for over 25 years at major companies like Hewlett Packard and Intel. At Intel, he led its AI and data centre group, making him the perfect pick for Nokia’s next chapter.
"Networks are the backbone that power society and businesses, and enable generational technology shifts like the one we are currently experiencing in AI."
For Nokia, this move is about more than just leadership—it’s about staying ahead in the AI game while continuing to improve its network infrastructure.
The AI boom is here, and Nokia wants a slice. With Hotard at the helm, Nokia wants to grow its focus on AI-powered networks and data centres.
Analyst Atte Riikola of Inderes, a Finnish market research firm, put it perfectly:
"This strategic shift reflects Nokia’s understanding that the mobile network market has modest growth prospects compared to AI and data centers."
In simpler terms, Nokia is betting on the right horse for long-term success.
This leadership change comes after a strong 2024 for Nokia. Just last month, the company reported an 89% rise in net profit. Key markets like India and North America showed significant growth.
This is a big turnaround compared to 2023, when Nokia faced falling demand for its 5G equipment and even had to cut up to 14,000 jobs.
But now, Nokia’s share price is climbing, and with Hotard leading the way, there’s plenty of optimism about the company’s future.
Nokia’s shift to AI and network infrastructure won’t just benefit the company—it’ll impact how people connect globally. From faster networks to smarter AI integrations, Nokia is looking to stay at the forefront of innovation.
For investors, this move highlights a focus on growth areas like AI, which could bring higher returns in the long run.
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