Nokia has appointed Justin Hotard as chief executive officer, following Pekka Lundmark’s exit effective from April 1st, 2025.
Hotard is currently the executive vice president and general manager of the Data Center & AI Group at Intel.
This leadership change comes as telecom equipment makers, including Nokia, face a slowdown in 5G infrastructure sales.
With artificial intelligence and data centre technology becoming top areas of growth, the decision taken by Nokia to appoint Justin Hotard is a well-thought focus on these emerging sectors.
Sari Baldauf, chair of Nokia’s Board, stressed Hotard’s expertise in these areas, saying, “He has a strong track record of accelerating growth in technology companies along with vast expertise in AI and data centre markets, which are critical areas for Nokia’s future growth.”
Market analysts have reacted to the development, with JPMorgan describing the leadership change as unexpected. “Given that a new CEO has already been appointed, it looks like this transition was in the works for some time. With the Datacentre and AI background of the new CEO, it is clear which areas Nokia wants to focus on,” they noted.
Analysts at Inderes also view the move as a deliberate transition towards strengthening Nokia’s Network Infrastructure division, which is seeing increasing investments in AI-driven solutions.
Nokia has been striving to ensure its growth beyond traditional telecom equipment. Last year, the company announced a $2.3 billion acquisition of U.S.-based optical networking firm Infinera, aiming to capitalise on the rising demand for data centre infrastructure.
Even with gains of 27.85% in Nokia’s share price over the past year, the company’s stock is still lower than its peak in 2000. At the time of the announcement, Nokia’s shares rose by 1.6% to €4.70 on the Helsinki Stock Exchange, outperforming the market, which saw a 0.45% increase.
Lundmark, who took over as CEO in 2020, will remain with the company as an advisor to Hotard until the end of the year.
Speaking on the leadership change, Baldauf explained, “The planning for this leadership transition was initiated when Pekka indicated to the Board that he would like to consider moving on from executive roles when the repositioning of the business was in a more advanced stage, and when the right successor had been identified.”
With Hotard’s appointment, Nokia seeks to increase its focus on AI and data centre infrastructure, aligning itself with the current demands of the technology sector.
