Ericsson and Nokia shares slide on reports of potential competition from Nvidia

U.S. semiconductor giant Nvidia is reportedly developing a chip for radio units within 6G networks, according to a flash note from ABG Sundal Collier on Tuesday.

ABG assesses that it would be negative for telecom equipment provider Ericsson if this chip were to gain a significant market position.

‘Our base case: it is too early to worry, but it is something worth monitoring’, ABG wrote.

Ericsson’s stock is down 5.8 percent, while Nokia’s shares have shed 4.6 percent.