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Ericsson and Nokia pivot toward AI and cloud as optical networks grow

Nokia logoNokia
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Ericsson logoEricsson
Sig2.30Sen+3.80Env0.00Soc0.00Gov0.00

The reinvention of consumer-focused tech firms often shifts toward less visible assets like networks, software and patents. Ericsson’s strategy is tied to that pivot: sales to AI and cloud customers rose 49% year on year in Q1 2026, and its Optical Networks business grew 20%, reflecting momentum from AI demand through networking infrastructure.

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