Lumen Technologies vs. Nokia: Which Stock Will Make You Richer?
Key Points
Lumen Technologies and Nokia both shifted solutions from legacy telecommunications to AI.
Lumen is transitioning from consumer internet services to creating AI-optimized networks for businesses.
Nokia launched the world's first 5G wireless software-as-a-service network in 2026.
Both Lumen Technologies (NYSE: LUMN) and Nokia (NYSE: NOK) are telecommunications giants, but they're now focusing on servicing the hot artificial intelligence (AI) sector.
Based on its stock performance, it appears Wall Street approves of Lumen's pivot from consumer internet offerings to a fiber-optic network dedicated to AI's high-bandwidth needs. Lumen shares traded up about 80% over the past 12 months through the week ending Feb. 20. Nokia's AI focus also seems to have gained Wall Street's favor as its shares rose nearly 60% in that time.
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Between Lumen and Nokia, one looks like the superior stock choice to capitalize on the AI market. That company is Nokia, and here's why.
Image source: Getty Images.
Nokia's advantages
Nokia possesses several advantages over Lumen. For starters, its revenue is growing while Lumen's sales are in decline. In 2025, Nokia's revenue rose 3% to 19.9 billion euros. Lumen exited 2025 with $12.4 billion in sales, down from $13.1 billion in 2024, as it transitioned away from its consumer business.
Moreover, Nokia is profitable. Lumen is not. Nokia's 2025 operating profit was 885 million euros. Lumen posted an operating loss of $812 million last year.
Further underscoring Nokia's financial superiority is its 2025 free cash flow (FCF) of 1.5 billion euros, which allows it to pay a dividend, currently yielding a robust 2%. Lumen posted 2025 FCF of $371 million, and it eliminated its dividend in 2022.
Aside from Nokia's stronger financials, it is delivering tangible results in the AI arena. It partnered with Nvidia toward the end of last year to work on an AI-native wireless network.
In addition, on Feb. 19, Nokia announced the deployment of the world's first 5G core software-as-a-service (SaaS) network. This offers a cloud-based turnkey solution for organizations to quickly deploy 5G wireless without high upfront costs or time-consuming setup. Nokia uses AI to manage the SaaS network.
While Lumen has yet to prove its strategic shift can generate sustained business growth, Nokia is demonstrating progress on its AI vision, making it the preferred stock for investors seeking returns over the long run.
Robert Izquierdo has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.