Moody's Pulls Nokia Back Into Investment Grade as Hotwire Taps Its Routers for AI-Era Network

Nokia's credit profile got a long-awaited lift this week when Moody's Ratings raised the Finnish telecom equipment maker's long-term issuer rating and its senior unsecured debt rating from Ba1 to Baa3. The agency kept a positive outlook on both. Moody's pointed to accelerating demand for cloud and AI infrastructure as the rationale behind the upgrade, which restores an investment-grade stamp the vendor had been without.

The rating action covers Nokia both as an issuer and on its senior unsecured obligations; the outlook was left untouched. It lands alongside a pair of business developments that sketch out where the company sees its growth coming from — one near-term, one stretching a decade out.

Hotwire Picks Nokia for North Carolina Build

Hotwire Communications has selected Nokia to construct a next-generation network in North Carolina, with both companies saying the infrastructure will be built to handle AI-related and other traffic demand. Nokia's 7750 Service Router sits at the heart of the deployment, which also involves readying Hotwire's IP, data center and optical infrastructure for those workloads. Operations are expected to begin in early 2027 — a target, not a completed milestone.

Should investors sell immediately? Or is it worth buying Nokia?

Longer term, Nokia's global network traffic report projects that artificial intelligence will account for 44% of worldwide data traffic by 2035. Total monthly traffic is seen reaching almost 3,789 exabytes by then. Those are forecasts for global network traffic, not reported Nokia financials.

A Rebound, Not a Single Catalyst

Friday's session saw Nokia shares advance 3.5% amid a broader recovery in technology and AI stocks. AP reported that AI names clawed back part of their losses, while Reuters described gains in chip stocks following the technology-driven selloff. According to media reports, the improved credit assessment also bolstered sentiment toward Nokia — though no single trigger for the day's move could be identified. The Moody's decision speaks to the company's credit quality; it is not a confirmed explanation for Friday's share price gain.

Separately, a stake disclosure with an event date of September 30 shows FMR LLC and Abigail P. Johnson holding economic interest in 3.8% of Nokia shares. The regulatory filing documents the holding position but does not confirm any share purchase.

Nokia published its interim report for the third quarter and the first nine months of 2026 on October 22, reaffirming its full-year financial outlook.

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