Nvidia Acquires 2.9% Stake in Nokia, Exits Arm to Advance Physical AI Strategy

Nvidia (NVDA) disclosed a strategic pivot in its latest 13F filing on February 22, 2026, acquiring a 2.9% stake in Nokia (NOK) while fully divesting its holdings in Arm Holdings. The investment targets "Physical AI" infrastructure, leveraging Nokia’s telecom expertise to bridge the gap between GPU computing and network connectivity. Nokia, with a market capitalization of $44.6 billion, has strengthened its position in 5G and optical communications through its Infinera acquisition. By integrating Nokia’s infrastructure, Nvidia aims to embed AI computing directly into telecommunications networks. Concurrently, Nvidia increased stakes in Intel and Synopsys, forming a vertical ecosystem spanning chip design, manufacturing, and networking. The filings indicate a capital reallocation from application-layer AI companies, such as Applied Digital, to foundational infrastructure. The exit from Arm addresses antitrust constraints and business overlap with Synopsys, allowing Nvidia to concentrate resources on the underlying architecture of the next industrial revolution.