Ericsson lags profit expectations as AI demand drives up chip bill

Sweden’s Ericsson reported a first-quarter core profit that slightly missed market expectations on Friday, citing increasing ‌chip costs ⁠caused by artificial ⁠intelligence demand and a sales slowdown in North America.

The network equipment maker is facing rising input costs partially due to high demand for AI technology that is driving up prices of semiconductors, CEO Börje Ekholm said in a statement.