Nvidia soars as Merck partners with Google to invest in Gemini

Key Takeaways

Nokia sales hit 16-year high driven by AI demand

Nokia reported its highest sales in 16 years as demand for artificial intelligence and cloud infrastructure surged. Net sales grew 4% at the start of the year, with AI and cloud segments seeing a 49% increase. The company booked 1 billion euros in orders from AI and cloud customers in the first quarter. Nokia expects the addressable market for AI and cloud to grow by 27% annually from 2025 to 2028. This growth reflects a major shift from its traditional phone business to optical transport systems.

Nokia shares reach peak after beating profit estimates

Nokia shares rose nearly 7% after the company beat market expectations for quarterly operating profit. Comparable operating profit jumped 54% to 281 million euros in the first quarter of 2026. This performance sent Nokia's stock to its highest level since April 2010. Sales from AI and cloud customers climbed 49%, contributing to a total net sales figure of 4.5 billion euros. The company also raised its growth targets for the AI business following the strong results.

Nokia profit beats estimates as AI sales surge

Nokia's comparable operating profit increased 54% to 281 million euros, exceeding analyst estimates of 250 million euros. This growth was driven by high demand for AI data centers built by large cloud service providers. The company booked 1 billion euros in new orders from AI and cloud customers during the first quarter of 2026. Nokia previously known for phones and 5G gear is now a top manufacturer of optical transport systems after buying Infinera. CEO Justin Hotard stated the company is tracking above its full-year financial outlook.

Nokia earnings beat as AI demand boosts revenue

Nokia reported a 54% rise in comparable operating profit to 281 million euros in the first quarter of 2026. This figure surpassed the average estimate of 250 million euros from analysts polled by Infront. Net sales reached 4.5 billion euros, with a 49% increase from AI and cloud customers. The company relies on fiber optic cables for the AI data centers built by hyperscalers. Nokia's shares rose nearly 7% in early trading, reaching their highest price since 2010.

Nokia profit rises as AI and cloud orders grow

Nokia posted a 11% rise in comparable operating profit to 539 million euros, beating analyst expectations. Net sales increased 10% to 5.8 billion euros, exceeding the 5.6 billion euros forecast by analysts. The company booked orders worth 1 billion euros from AI and cloud customers. CEO Pekka Lundmark noted that demand for AI and cloud solutions is unprecedented. The company plans to invest in expanding its AI and cloud capabilities to capture a larger market share.

Nokia earnings exceed forecasts on AI growth

Nokia reported a 54% increase in comparable operating profit to 281 million euros in the first quarter of 2026. This result beat the average analyst estimate of 250 million euros. Sales from AI and cloud customers surged by 49%, highlighting the technology shift driving Nokia's growth. The company previously known for mobile phones has pivoted to optical transport systems after acquiring Infinera. Analysts noted that the strong order pipeline signals sustained momentum in the AI segment.

Nokia profit jumps as AI sales outpace estimates

Nokia's comparable operating profit jumped 54% to 281 million euros in the first quarter of 2026. This figure was above the average estimate of 250 million euros from analysts polled by Infront. Net sales reached 4.5 billion euros, with a 49% climb from AI and cloud customers. The company also booked 1 billion euros in new orders. Nokia expects the addressable market for AI and cloud to grow by 27% annually from 2025 to 2028.

Nokia profit rises as AI and 5G demand grows

Nokia reported a bigger than expected rise in quarterly comparable operating profit driven by AI and cloud customers. The company booked orders worth 1 billion euros in the first quarter of 2026. Comparable operating profit jumped 54% to 281 million euros, exceeding analyst estimates. Net sales increased 10% to 5.8 billion euros due to higher demand for network infrastructure. CEO Pekka Lundmark stated that investments in research and development are paying off.

Tech expert warns of AI investment bubble

Business professor Erik Gordon claims stock investors are ignoring economic issues like war and inflation to focus solely on AI. He argues the market is in a bubble driven by the potential of artificial intelligence. Gordon cited Nvidia as an example of a stock soaring despite broader economic challenges. He warned that this focus could lead to a market correction when the hype eventually fades. Gordon advised investors to consider broader economic context when making decisions.

Gordon says AI hype creates market disconnect

Erik Gordon, a business professor, says investors are living in a parallel reality where only AI companies seem real. He highlighted Allbirds as an example of a company pivoting to AI infrastructure to boost its stock price. Gordon noted that skeptics like Michael Burry and Jeremy Grantham also worry about the AI bubble. He warned of an order-of-magnitude overvaluation bubble that could cause greater losses than the dot-com crash. Other investors believe the market is correctly pricing in future AI returns.

Raymond James CEO highlights AI and tech focus

Raymond James CEO Paul Shoukry discussed the company's renewed focus on technologies, products, and AI. He explained how AI helps advisors provide more holistic advice to clients. The company launched an AI operations agent in January that uses natural language processing to answer operational questions. Shoukry emphasized that personal relationships between advisors and clients remain more important than any technology. The company reported net revenue of 3.86 billion euros for the quarter ending March 31.

Raymond James expands AI use but values human connection

Raymond James CEO Paul Shoukry acknowledged the helpfulness of AI but stated personal relationships will trump any technology or bot. The company rolled out an AI operations agent in January to assist with operational questions. Shoukry noted that deeply personal relationships between advisors and clients are irreplaceable. The company reported quarterly net revenue of 3.86 billion euros, above analyst estimates. Shares of Raymond James rose slightly following the announcement.

AI impacts inflation and productivity in complex ways

Economists say the relationship between AI, productivity, and inflation is complicated and messy. In the short term, AI is increasing inflation modestly due to higher electricity and construction costs. Data centers powering AI models have driven up electricity prices and construction wages. Memory chip prices are also soaring as AI-driven demand grows. Experts warn it will take time for companies to realize significant cost savings from new AI models.

New ETF targets heavy-asset stocks resistant to AI

Defiance ETFs filed a prospectus with the SEC for a new AI Resilience ETF. This fund aims to track large-cap U.S. stocks that are heavy-asset and resistant to AI disruption. The ETF will focus on companies with significant physical assets and stable business models. Defiance ETFs believes this fund will appeal to investors seeking stability in a changing technological landscape. The exact launch date and ticker symbol have not been announced yet.

SLB partnership with Bahrain AI firm reshapes outlook

Geminus AI announced a partnership with Bapco Energies and SLB to deploy physics-informed AI in Bahrain. The project integrates SLB's Pipesim simulator with field data to optimize upstream production. This initiative supports Bahrain's Net-Zero by 2060 goals and strengthens SLB's role in AI-enabled operations. The deal highlights SLB's transition story as it weaves AI into core workflows across subsurface and drilling. Analysts note that execution on earnings remains the primary near-term catalyst for SLB.

Blackstone president discusses AI boom and credit

Blackstone President and COO Jon Gray joined CNBC's Squawk Box to discuss quarterly earnings results. He addressed the state of the AI boom and how the company is implementing AI internally. Gray also discussed the current state of private credit markets. The conversation covered the company's financial performance and future outlook. The discussion took place during a conference call to review second-quarter results.

Accenture stock drops on AI investment worries

Accenture stock slipped after investors had concerns about its AI investment in Iridius. A cautious outlook failed to offset weak momentum and investor worries. Investors prioritized near-term momentum and guidance over the company's AI stake. This decision pushed shares lower despite the strategic investment. The market reaction highlighted the tension between long-term AI goals and short-term financial expectations.

Tesla invests billions in AI and automation

Tesla reported steady first-quarter results while outlining an aggressive expansion into artificial intelligence and robotics. Executives say this strategy will define the company's next phase even as it weighs on near-term financial performance. The investment push signals a major shift toward AI and automation. Tesla is focusing on production optimization and the Optimus robot project. This move aims to leverage new technologies for future growth.

Merck partners with Google Cloud on AI transformation

Merck & Co and Google Cloud formed a multi-year partnership to invest up to 1 billion dollars in agentic AI. The collaboration will implement an agentic platform across Merck's R&D, commercial, and manufacturing divisions. Google Cloud engineers will work directly with Merck teams to deploy advanced AI including Gemini Enterprise. The initiative aims to digitize data and enhance productivity for Merck's 75,000 employees globally. Applications include optimizing manufacturing and enhancing patient engagement through AI-driven automation.

Sources

• Nokia reports sales boom as it rides the AI data centre wave
• AI Boom Lifts Nokia Sales, Shares Hit 16-Year High After Earnings Beat
• Nokia Beats Q1 2026 Profit Estimates as AI-Driven Sales Surge
• Nokia beats first-quarter estimates as AI boom lifts sales again
• Nokia beats first-quarter estimates as AI boom lifts sales again
• Nokia Surpasses Q1 Expectations on Strong AI-Driven Sales Surge
• Nokia beats first-quarter estimates as AI boom lifts sales again
• Nokia beats first-quarter estimates as AI boom lifts sales again
• Stock investors are living in a parallel universe where AI trumps all, tech guru Erik Gordon says
• Stock investors in their 'own universe' where AI trumps all: Gordon
• Watch Raymond James CEO: Focusing on Tech, Products, AI
• Raymond James extends AI rollout but CEO says personal relationships will ‘trump’ any tech or bot
• The messy interplay between AI, productivity and inflation
• New Filing Pushes AI Resilience ETF Targeting Heavy-Asset US Stocks
• Did Bahrain Physics-Informed AI Deal Just Shift SLB's (SLB) Investment Narrative?
• Blackstone President Jon Gray on Q1 results, AI boom and state of private credit
• Accenture Stock Falls on AI Investment Concerns
• Tesla's US$25 billion investment push signals shift to AI and automation
• MSD teams up with Google Cloud on agentic AI transformation