Nokia’s new CEO Justin Hotard has made a bold prediction about the future of artificial intelligence investments, stating that the current AI boom is far from over and represents a “super cycle” that will continue for many years. In an interview with CNBC on Thursday, Hotard dismissed concerns about an AI bubble, arguing that the technology is still in its infancy with vast untapped potential.
Hotard, who took over as Nokia’s president and CEO in April 2025, brings significant AI expertise to his role, having previously served as executive vice president and general manager of Intel’s Data Center & AI Group. His perspective carries weight given his deep background in AI infrastructure and data center operations.
The Nokia chief executive emphasized that current AI applications represent only a fraction of the technology’s potential. “If you look at what we are doing in AI today, we are largely using LLMs for language-based applications,” Hotard explained. He pointed to numerous emerging sectors with minimal AI penetration, including autonomous vehicles, augmented and virtual reality, smart glasses, and robotics, all of which remain in early development stages.
Hotard’s comments come amid growing debate about whether AI investments have reached unsustainable levels. Some industry observers, including Meta’s former president of global affairs Nick Clegg, have warned that AI exhibits characteristics of a financial bubble. In an October 15 CNBC interview, Clegg described “an absolute sort of spasm of almost daily, hourly, dealmaking” and suggested the sector could be “headed for a correction.”
However, Hotard drew parallels to the dot-com era, arguing that even though the internet experienced a bubble burst, long-term growth ultimately exceeded pre-bubble levels. “It’s hard for me to predict what exactly will happen in AI on a quarter or one-year basis, but I think the long-term prospects are massive,” he stated.
The AI infrastructure buildout has created tremendous demand for networking equipment, which directly benefits Nokia’s business. Hotard noted that AI has generated “tremendous demand around the network buildout,” positioning Nokia as a key beneficiary of continued AI investment.
Tech giants continue to commit massive capital to AI development. Meta CEO Mark Zuckerberg announced in September that his company would spend at least $600 billion on US data centers and infrastructure through 2028. While acknowledging that an AI bubble is “quite possible,” Zuckerberg told the “Access” podcast that he would rather over-invest than risk falling behind competitors.
Key Quotes
I think this is a secular growth trend for many years. The reason I say that is if you look at what we are doing in AI today, we are largely using LLMs for language-based applications.
Nokia CEO Justin Hotard explained to CNBC why he believes AI investments will continue growing, emphasizing that current applications represent only a small fraction of AI’s potential uses across industries.
Autonomous vehicles are still in the early days of penetration. Augmented and virtual reality, smart glasses. Very low penetration. Robotics. Very low penetration. There’s so many applications to come that I think we are very much in the early days.
Hotard outlined specific sectors where AI adoption remains minimal, supporting his argument that the technology is far from reaching maturity and justifying continued investment in AI infrastructure.
Yes, we had a bubble in the internet, but even if you look at that over a two, or three, or five-year period, you see that bubble burst, and then you see tremendous growth well above where the bubble was.
The Nokia CEO drew historical parallels to the dot-com era, arguing that short-term corrections don’t negate long-term growth potential and that people take too narrow a view when calling AI a bubble.
There’s just an absolute sort of spasm of almost daily, hourly, dealmaking. Of course, you have got to kind of think, ‘Oh wow, this could be headed for a correction.
Meta’s former president Nick Clegg offered a contrasting perspective to Hotard’s optimism, warning that the frenetic pace of AI dealmaking exhibits classic bubble characteristics that could lead to a market correction.
Our Take
Hotard’s perspective represents a crucial counterpoint to growing AI skepticism, but his position as CEO of a company that directly profits from AI infrastructure buildout should be considered when evaluating his optimism. That said, his technical background at Intel’s Data Center & AI Group lends credibility to his assessment of AI’s technical trajectory.
The tension between Hotard’s bullishness and Clegg’s caution reflects a broader industry debate about whether current AI valuations and investments are sustainable. What’s particularly interesting is that both acknowledge bubble-like characteristics while reaching different conclusions about appropriate responses.
The key insight may be Hotard’s focus on application diversity. If AI remains primarily confined to language models and chatbots, skeptics may prove correct. However, if AI successfully penetrates autonomous vehicles, robotics, and other physical-world applications, the addressable market expands exponentially, potentially justifying current investment levels and supporting Hotard’s super-cycle thesis.
Why This Matters
This story signals continued confidence in AI’s long-term trajectory from a major technology infrastructure provider, which has significant implications for the entire tech ecosystem. Nokia’s position as a critical supplier of networking equipment gives Hotard unique visibility into actual AI infrastructure deployment, making his optimistic outlook particularly noteworthy.
The debate over AI investment sustainability has become increasingly urgent as companies commit hundreds of billions of dollars to the technology. Hotard’s perspective that we’re still in the “early days” of AI adoption challenges growing skepticism and suggests that current spending levels may be justified by future applications.
For businesses and investors, this analysis provides important context for strategic planning. If Hotard’s assessment proves correct, companies that maintain or increase AI investments during potential short-term corrections could gain significant competitive advantages. His emphasis on untapped sectors like autonomous vehicles, robotics, and AR/VR suggests where future AI growth may emerge.
The comparison to the dot-com bubble offers both reassurance and caution. While internet investments eventually paid off massively, the intervening correction caused significant financial pain. Understanding this historical parallel helps stakeholders prepare for potential volatility while maintaining long-term conviction.
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Source: https://www.businessinsider.com/nokia-ceo-ai-investments-will-not-slow-down-super-cycle-2025-10