Both Lumen Technologies (NYSE: LUMN) and Nokia (NYSE: NOK) are telecommunications giants, but they're present focusing connected servicing the blistery artificial quality (AI) sector.
Based connected its banal performance, it appears Wall Street approves of Lumen's pivot from user net offerings to a fiber-optic web dedicated to AI's high-bandwidth needs. Lumen shares traded up astir 80% implicit the past 12 months done the week ending Feb. 20. Nokia's AI absorption besides seems to person gained Wall Street's favour arsenic its shares roseate astir 60% successful that time.
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Between Lumen and Nokia, 1 looks similar the superior banal prime to capitalize connected the AI market. That institution is Nokia, and here's why.
Nokia possesses respective advantages implicit Lumen. For starters, its gross is increasing portion Lumen's income are successful decline. In 2025, Nokia's gross roseate 3% to 19.9 cardinal euros. Lumen exited 2025 with $12.4 cardinal successful sales, down from $13.1 cardinal successful 2024, arsenic it transitioned distant from its user business.
Moreover, Nokia is profitable. Lumen is not. Nokia's 2025 operating nett was 885 cardinal euros. Lumen posted an operating nonaccomplishment of $812 cardinal past year.
Further underscoring Nokia's fiscal superiority is its 2025 escaped currency travel (FCF) of 1.5 cardinal euros, which allows it to wage a dividend, presently yielding a robust 2%. Lumen posted 2025 FCF of $371 million, and it eliminated its dividend successful 2022.
Aside from Nokia's stronger financials, it is delivering tangible results successful the AI arena. It partnered with Nvidia toward the extremity of past twelvemonth to enactment connected an AI-native wireless network.
In addition, connected Feb. 19, Nokia announced the deployment of the world's archetypal 5G halfway software-as-a-service (SaaS) network. This offers a cloud-based turnkey solution for organizations to rapidly deploy 5G wireless without precocious upfront costs oregon time-consuming setup. Nokia uses AI to negociate the SaaS network.
While Lumen has yet to beryllium its strategical displacement tin make sustained concern growth, Nokia is demonstrating advancement connected its AI vision, making it the preferred banal for investors seeking returns implicit the agelong run.
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