Nokia chooses Intel’s AI and data center leader Hotard as its new CEO
COPENHAGEN (Reuters) – Finnish telecom company Nokia said Monday that Pekka Landmark has resigned as CEO and appointed Justin Hotard to take over his role.
According to the Chipmaker website, Hotard, who will take the position on April 1, is executive vice president and general manager of Intel’s Data Center & AI Group.
Telecom gear makers struggling with declining sales of 5G equipment are looking for ways to diversify their markets and infiltrate growth areas such as artificial intelligence.
“He has a strong track record of accelerating the growth of technology companies, along with his vast expertise in the AI and data center market, a key area of Nokia’s future growth,” said Nokia Chairman Sari Bardauff. It was stated in a statement.
Stocks rose 1.6% at 4.7 euros at 0854 GMT on the Helsinki Stock Exchange, which was just 0.45%.
JPMorgan analysts were surprised as they said CEO Transition had managed to “stabilise the ship.”
“Given that a new CEO has already been appointed, this transition appears to have been in work for some time. With the background of new CEOs Datacentre and AI, it is clear which areas Nokia wants to focus on That’s it,” they said. Note.
This view was echoed by Inderes analysts. Inderes sees data centers and AI investments as a strategic change to Nokia’s network infrastructure units, where data centers and AI investments are driving new growth opportunities.
Last year, Nokia made our optical networking gear manufacturer Infinera with a $2.3 billion deal, with a $2.3 billion deal, which comes from billions of investments invested in data centers to meet the rise of artificial intelligence. I made the move to buy it.
The landmark, which was appointed Nokia CEO in 2020, will remain Hotard’s advisor until the end of the year, the company said.
In September, Nokia refused to report the media, saying the company was looking for a new CEO.
“This leadership transition plan would like to consider Pekka to consider moving out of executive roles when business relocation is at a more sophisticated stage and the right successor is identified. It started when it came,” Baldauf said.
Nokia shares have grown 27.85% over the past year, but have fallen more than 90% since it peaked in June 2000.
With AI technology increasingly integrated, infrastructure businesses focus on building and maintaining communication systems, such as data centers, servers, and routers.
Its mobile network units are concentrated on technologies and services that enable mobile communications, such as the development and management of cell towers and 5G technology.
(Reporting by Stine Jacobsen; Editing by Louise Breusch Rasmussen, Varun HK, Anne Kauranen, and Louise Heavens)