Nokia has appointed Justin Hotard, current lead of Intel’s Data Center & AI Group, as the company’s new CEO, replacing Pekka Lundmark. Hotard will take over the role on April 1 and brings a strong track record of accelerating growth in technology companies, with expertise in AI and data center markets.
The move comes after Nokia announced a $2.3 billion deal to acquire US optical networking firm Infinera last year, aiming to capitalize on rising AI-driven data center investments. Analysts at JPMorgan and Inderes say the change is a strategic shift towards Nokia’s Network Infrastructure unit, where data centers and AI investments are fostering new growth opportunities.
Lundmark, who took over as CEO in 2020, will remain an advisor to Hotard until the end of the year. Despite Lundmark’s efforts to stabilize the company, analysts say the transition was likely in the works for some time. Nokia shares rose 1.6% on Monday, outpacing the market’s gain, after news of the CEO change.
The appointment of a new CEO comes as telecom equipment manufacturers face declining sales of 5G gear and are exploring new markets such as AI. Nokia’s infrastructure division specializes in communication systems, including data centers, servers, and routers, while its mobile networks unit focuses on mobile communication technologies.
Source: https://www.hindustantimes.com/business/who-is-justin-hotard-nokias-new-ceo-replacing-pekka-lundmark-details-101739194629513.html