Ericsson Warns of Rising Chip Costs After Earnings Miss

Ericsson AB earnings missed analysts’ forecasts in the first quarter, as the Swedish company struggled in a weak market for telecommunications equipment and rising chip costs, in part due to the artificial intelligence boom.

Adjusted earnings before interest, taxes and amortization were 5.6 billion kronor ($610 million), down 20% from a year earlier, the Stockholm-based company said in a statement on Friday. That compared to an average analyst estimate of 5.84 billion kronor, according to data compiled by Bloomberg.