Why are ALCTL stocks rising? Importance for investors.

Reasons for the Rise in ALCTL Shares

Alcatel Lucent Teletaş (ALCTL) has gained over 20% in value in the past week, delivering a positive performance for its investors. As of 3:04 PM today, ALCTL reached 129.70 TL, up by 4.52%, standing out as a notable stock for investors. So, what are the underlying reasons for the rise in ALCTL shares?

Nvidia’s Investment in Nokia

One of the key factors contributing to ALCTL’s upward movement is the significant investment agreement between US tech giant Nvidia (NVDA) and Nokia (NOK). An announcement made last week revealed that Nvidia would purchase approximately $1 billion in Nokia shares, creating excitement among investors. Since Nokia is the main shareholder of Alcatel, this development has a direct positive impact on ALCTL.

Nokia will issue around 166 million shares at a price of $6.01 per share to Nvidia, enabling Nvidia to hold a 2.9% stake in the Finnish company. This strategic move creates an indirect partnership between Alcatel and Nvidia, reflecting positively on the stock's value.

Technological Collaboration and Future Vision

Within the scope of this agreement, Nvidia’s chips will be used to accelerate Nokia’s software for 5G and 6G networks. Furthermore, Nvidia will work on how to utilize Nokia’s data center technology within the artificial intelligence infrastructure. The formation of a partnership between the two companies to develop new-generation 6G cellular technology is also a supporting factor for this rise.

Nokia aims to collaborate on the necessary network technology for artificial intelligence by aligning its 5G and 6G software with Nvidia’s chips. These developments have facilitated a 20.69% increase in ALCTL shares over the past week, benefiting investors.

As a result, this strategic partnership between tech giants plays a significant role in the increase in Alcatel Lucent Teletaş's stock value. ALCTL shares are viewed as an attractive opportunity for investors.