Nokia Corp. (NYSE:NOK), in collaboration with the Trump administration, earmarked $4 billion for U.S. R&D and manufacturing, accelerating innovation in artificial intelligence-ready mobile, fixed access, IP, optical, and data center networking technologies.

The stock gained after the update.

This multi-year investment builds on the $2.3 billion Nokia already committed to U.S. manufacturing, R&D, and AI connectivity through its purchase of Infinera.

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Infinera had separately announced a $456 million investment in two U.S. facilities supported by CHIPS Act incentives.

Nokia plans to direct about $3.5 billion toward U.S. R&D, reinforcing its push to advance next-generation connectivity and AI across networks, including defense and mission-critical systems.

The company will also allocate about $500 million in U.S. capital expenditures for manufacturing and R&D in states such as Texas, New Jersey, and Pennsylvania.

This strategy deepens Nokia’s AI-optimized networking portfolio while reinforcing its industry-leading R&D across automation, quantum-safe networks, semiconductor manufacturing and testing, advanced packaging, and next-generation material science — extending the innovation legacy of Nokia Bell Labs in New Jersey.

The $33 billion Finnish multinational telecommunications, information technology, and consumer electronics company gained 33% year-to-date as it remains engaged in strategic restructuring and partnerships to unlock value.

AI-Focused Restructuring

Nokia is currently overhauling its business to capture growth in AI-driven and software-centric networks, as demand for traditional 5G slows.

The company will streamline operations into two core divisions, Network Infrastructure and Mobile Infrastructure, starting January 1, 2026.

Nokia set new profitability and cash-flow targets through 2028, cut centralized costs, and shifted slower-growth assets into a Portfolio Businesses unit to strengthen returns.

It is also expanding AI, cloud, and defense-grade secure-connectivity initiatives to reinforce its role as a Western supplier in sensitive infrastructure markets.

Price Action: NOK shares were trading higher by 0.85% to $5.920 at last check Friday.

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