profitwarning

$ERIC PLUNGES 10% AS AI CHIP COSTS SQUEEZE PROFIT MARGINS 🔥

Ericsson’s stock just recorded its steepest drop in 18 months after management warned that surging component costs—fueled by AI-driven demand for storage chips—will pressure margins this quarter. Citigroup analysts see the risk extending into 2027, calling it the market’s core concern.

The company’s adjusted EBITA fell 7% year-over-year to 6.88B SEK, even as it cut 5,000 jobs and plans similar reductions this year. Revenue continues to slide as telecom operators delay spending. The question now is whether the 10% selloff has fully priced in the margin headwinds or if further downside is likely.

Not financial advice. Always manage your risk.

#ERIC #Earnings #StockMarket #ProfitWarning #Tech

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