Nokia Oyj (NOK) shares plummeted 5.02% in pre-market trading on Wednesday, despite the announcement of a $1 billion investment from Nvidia and a new collaboration on artificial intelligence (AI) and 6G technologies. This unexpected decline comes after the stock had surged over 22% in the previous trading session.

The Finnish telecommunications giant revealed on Tuesday that Nvidia would acquire a 2.9% stake in Nokia, valued at $1 billion. The investment is part of a broader partnership between the two companies to develop AI-powered networking solutions and explore opportunities in next-generation 6G technology. Nokia will issue more than 166 million new shares to Nvidia at a price of $6.01 per share.

Despite the positive news and the initial stock surge, investors appear to be reassessing the deal's implications or potentially taking profits after the significant rally. The pre-market drop suggests that some market participants may have concerns about the long-term impact of the partnership or the dilution effect of issuing new shares. Additionally, the broader market sentiment and other macroeconomic factors could be influencing Nokia's stock performance.