Nokia Oyj will replace Chief Executive Officer Pekka Lundmark with Intel Corp.’s recently appointed head of artificial intelligence Justin Hotard in a surprise announcement as the network equipment maker works to exit a prolonged slump in orders from phone operators.

Nokia (NYSE: NOK) said Monday that Justin Hotard will succeed Pekka Lundmark as the Finnish company's new CEO. Intel hired Hotard as executive vice president and general manager of its data center and artificial intelligence group in January 2024.

Justin Hotard, Intel’s head of data-center and AI operations, is leaving to head up Nokia. Shares of the telecom-gear maker rallied over 2% in Europe; U.S.-listed Intel shares edged higher premarket.

Finnish telecoms company Nokia on Monday said Pekka Lundmark would step down as CEO, and that it has appointed Justin Hotard to take over his role.

Intel stock (INTC, Financial) rose by 5% on the first day of the week after the company lost its AI chief to Nokia. The news arrives as executive Justin Hotard announced

After only a little more than a year of running Intel’s Data Center and AI group – which is probably about as much fun right now as falling down the

Nokia announces a leadership change. CEO Pekka Lundmark will step down in March 2025. Justin Hotard, with over 25 years of tech industry experience, will succeed him on April 1, 2025.

Hotard will take over as Chief Executive of Nokia (HE: NOKIA) as of April 1, replacing current boss Pekka Lundmark, the Finnish telecoms group said on Monday. Lundmark will stay on in an advisory capacity until the end of the year prior to leaving the business.

The company appointed Hotard as it moves to diversify and search for new growth areas outside of its traditional telecom operator market.