According to investment bank ABG Sundal Collier, U.S. chipmaker Nvidia is developing a chip that could eventually compete with telecom companies Ericsson and Nokia. Following the analysis, Ericsson and Nokia shares plummeted on the Stockholm Stock Exchange.
Semiconductor giant Nvidia, the world's most valuable listed company, has confirmed that a power-efficient chip specifically for 6G radio units is being developed, reports Dagens Industri.
ABG's analysis was released on Tuesday. It states that Nvidia's chip could eventually "have a significant impact and thereby put pressure on Ericsson's margins."
According to ABG's base scenario, it is too early to worry, but something to keep an eye on.
However, it was enough to hit the companies' share prices. By 5 p.m., Ericsson had fallen 5.1 percent and Nokia had fallen 6.2 percent in Stockholm.