Nokia appointed Justin Hotard, a tech industry expert in data centers and AI, as its next CEO, in a move that reinforces the company’s ambition to expand into new growth areas.

Nokia Oyj said it was replacing Chief Executive Officer Pekka Lundmark with Intel Corp.’s Justin Hotard in a surprise announcement as the network equipment maker works to exit a prolonged slump in orders from phone operators.

Nokia has hired its first CEO from America in a renewed pivot to AI designed to arrest years of low valuations and stagnant revenue growth. The Finnish telecoms group announced the appointment of Justin Hotard,