Nokia Appoints Intel’s Justin Hotard as New CEO Amid Strategic Shift Toward AI and Data Centres

Nokia has announced that Justin Hotard, the current executive vice president and general manager of Intel’s Data Center & AI Group, will succeed Pekka Lundmark as CEO.

Hotard will officially take over on April 1, with Lundmark remaining as an advisor to the new CEO until the end of the year.

The appointment of Hotard, a seasoned leader with expertise in artificial intelligence (AI) and data centres, signals Nokia’s focus on expanding its business into these growing sectors. Nokia’s chair, Sari Baldauf, praised Hotard’s extensive experience in driving growth in technology companies, particularly in AI and data centres, which are increasingly seen as critical areas for the company’s future success.

Shares of Nokia saw a modest increase of 1.6% following the announcement, reflecting investor optimism about the strategic direction under Hotard’s leadership.

Hotard’s background includes significant leadership roles in the tech industry, including positions at Hewlett Packard Enterprise and NCR Corporation. His track record of advancing technology initiatives positions him as a key player in Nokia’s strategy to diversify its offerings beyond traditional telecom equipment. Analysts suggest that his appointment highlights Nokia’s intent to strengthen its focus on data centres and AI-driven infrastructure, both of which are seen as key growth drivers in the coming years.

Nokia has been increasingly looking to expand its presence in the data centre market, having made a $2.3 billion acquisition of optical networking firm Infinera last year. The company’s infrastructure business, which now integrates AI technologies, aims to capitalize on the growing demand for data centres and related services. The transition comes as Nokia has faced challenges in its core telecom business, including a loss of key contracts and declining sales of 5G equipment.

Pekka Lundmark, who has been CEO of Nokia since 2020, will continue to serve as an advisor to Hotard throughout 2025. During Lundmark’s tenure, Nokia has focused on restructuring and repositioning its business, though analysts noted that the company has faced difficulties in meeting investor expectations, with its stock underperforming relative to its industry peers.

While the leadership change took many by surprise, with some analysts noting Lundmark’s efforts to stabilize the company, others view it as part of a broader strategic shift. JPMorgan analysts pointed out that the new leadership reflects a clear emphasis on AI and data centres, areas where Nokia sees potential for new opportunities.

With input from Reuters, the Wall Street Journal, and Bloomberg.