Ericsson, Nokia fall after reports on Nvidia 6G push

Telefonaktiebolaget LM Ericsson

Tue 16:49

Adds analyst comment, updates prices
** Ericsson ERICb.ST and Nokia NOKIA.HE fall sharply after reports flagging potential risks from Nvidia NVDA.O developing new technology for future mobile networks, say traders  
** A Dagens Industri article cites an ABG Sundal Collier report saying the U.S. chip maker is developing a chip for the radio unit in 6G mobile networks, something that in the long run could be negative for the two telecom equipment companies
** Commenting on a Light Reading report about Nvidia working on a 6G radio chip with Marvell Technology MRVL.O, Danske Bank says Ericsson's technology could “start looking as legacy or even become obsolete in the longer term”
** On the other hand, Nokia could “scale back on ASIC development costs”, Danske writes  
** Ericsson and Nokia are not immediately available to comment 
** Shares both down more than 6%

 (Reporting by Alexander Gudbrandsen, Jakub Lubinski, Danilo Masoni)
 ((Danilo.Masoni@TR.com; Reuters Messaging: danilo.masoni.thomsonreuters.com@reuters.net))