Ericsson (OM:ERIC B) Teams Up on 6G Video Standards—Is Its Tech Leadership Set for a New Phase?

• Ericsson, Nokia, and Berlin’s Fraunhofer Heinrich Hertz Institute recently partnered to advance next-generation video coding standards for immersive media and mobile experiences in anticipation of the 6G era, marking the first joint demonstration of a new video codec with improved efficiency and scalability.
• This collaboration not only underscores Europe’s ambitions in defining global technology standards but also signals Ericsson’s positioning at the forefront of innovation in telecommunications and AI-powered solutions.
• We’ll assess how Ericsson’s role in 6G-ready video codec development may influence its investment narrative and technology leadership outlook.

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Telefonaktiebolaget LM Ericsson Investment Narrative Recap

Investing in Ericsson often comes down to believing in the company’s ability to lead the global shift into the 5G and future 6G era, while sustaining profitability through advanced research and industry alliances. The recent partnership on next-generation video codecs signals Ericsson’s continued technology leadership, but in the short term, it does not materially shift the most important near-term catalyst: the pace of global 5G adoption, nor does it eliminate the persistent risk of margin pressure from fierce competition and regulatory headwinds.

Of the latest announcements, Ericsson’s five-year agreement with Vodafone for network modernization stands out, directly linking to the main growth catalysts tied to 5G Standalone deployment across Europe. While this aligns with the sector’s forward momentum, it also echoes the competitive risks that remain, especially as industry consolidation and pricing pressures intensify.

However, investors should be aware that, in contrast to these collaborative advancements, ongoing regulatory and cost challenges could still create uncertainty around...

Read the full narrative on Telefonaktiebolaget LM Ericsson (it's free!)

Telefonaktiebolaget LM Ericsson is projected to reach SEK242.3 billion in revenue and SEK18.2 billion in earnings by 2028. This reflects a 0.5% annual decline in revenue and an increase in earnings of SEK0.9 billion from the current level of SEK17.3 billion.

Uncover how Telefonaktiebolaget LM Ericsson's forecasts yield a SEK87.22 fair value, a 9% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate fair value for Ericsson shares between SEK71.08 and SEK133.84, with five distinct perspectives represented. While this broad range highlights disagreement on valuation, the continued advancement of 5G and 6G technology remains a central catalyst that could influence Ericsson’s future performance, be sure to consider the many views available.

Explore 5 other fair value estimates on Telefonaktiebolaget LM Ericsson - why the stock might be worth 26% less than the current price!

Build Your Own Telefonaktiebolaget LM Ericsson Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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