Ericsson and Nokia shares slide on reports of potential competition from Nvidia - marketscreener.com

The recent decline in Nokia and Ericsson stock prices stems from reports suggesting NVIDIA's potential entry into the telecommunications equipment market, posing a competitive threat to these traditio... Read original →

NVIDIA’s potential move into telecom infrastructure would trigger a deep-stack reconfiguration: its GPUs and AI accelerators could be embedded directly into base stations and core networks, bypassing traditional vendors’ proprietary ASICs. This forces Nokia and Ericsson to either accelerate in-house SoC development or deepen ties with foundries like TSMC. Geopolitically, while the U.S. and EU push for ‘de-risked’ telecom supply chains, NVIDIA’s heavy reliance on advanced nodes from Taiwan, China introduces new fragility. In response, the two incumbents may divest non-core units or double down on Open RAN standardization. Over the next 18 months, network infrastructure will shift toward ‘compute-defined communications,’ marginalizing smaller vendors and elevating the strategic value of semiconductor IP and advanced packaging.