Nokia Oyj has announced the appointment of Justin Hotard, Intel Corp.’s newly appointed head of artificial intelligence, as its new CEO. Pekka Lundmark, who has been leading the company for over four years, will step down on March 31 and continue as an adviser to Hotard until the end of the year.
Hotard’s appointment comes after Nokia struggled with low operator investment in next-generation 5G mobile gear and increasing competition. However, the company has seen signs of growth in North America, a bellwether for telecom spending globally.
Analysts at JPMorgan Chase & Co. have noted that the transition to Hotard was likely in the works for some time, given his expertise in data center and AI. The new CEO stated that he will focus on growing through strong customer relationships and investing in other areas, rather than cutting prices to gain market share.
Nokia shares rose 2.4% following the announcement, gaining 43% over the past 12 months. Hotard indicated that the company is not considering selling its mobile networks unit, which is a core asset.
Under Hotard’s leadership, Nokia plans to expand into data centers and push into the defense industry. The company has recently acquired Infinera Corp. and Fenix Group to boost its product lineup and geographical reach.
Hotard’s appointment marks a significant shift for Nokia as it works to exit the prolonged slump in orders from phone operators. With his background in AI and data center expertise, Hotard is well-positioned to lead the company towards growth.
Source: https://finance.yahoo.com/news/nokia-hires-intel-ai-executive-095425392.html