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.
The investment bank'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 it's something to keep an eye on.
Ericsson fell 6.3 percent and Nokia 6.8 percent in Stockholm.
But JP Morgan doesn't give much weight to that logic, according to an analysis seen by Bloomberg.
Neither Ericsson nor Nokia should fear Nvidia's chip, according to the analysis. Nokia already has an established partnership with Nvidia and Ericsson could also decide to use Nvidia chips in the future.
"We therefore do not see Nvidia's entry into the radio module market as a viable argument for selling or being negative about Ericsson shares," the bank states.
