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Ericsson (ERIC) Hits New High on Stellar Earnings

We recently published Monstrous Gains: 10 Stocks Leaving Wall Street in the Dust. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) is one of the best performers on Tuesday.

Ericsson surged to a new all-time high on Tuesday, after reporting a strong earnings performance in the third quarter of the year.

In intra-day trading, Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) climbed to its highest 52-week price of $9.87 before slightly paring gains to end the day up by 20.56 percent at $9.85 apiece.

This followed the company’s 191-percent jump in net income in the third quarter of the year at SEK 11.3 billion from SEK 3.9 billion in the same period last year, despite net sales dropping by 9 percent to SEK 56.2 billion from SEK 61.8 billion year-on-year.

Net sales were dragged by a 20 percent decline in enterprise sales, impacted by the divestment of iconectiv during the quarter, as well as 2 percent drop in organic sales, amid weak sales in India.

”In Q3, we established margins at a new long-term level following strong operational execution over the past few years…Our solid progress on technology initiatives continues. Gartner and Omdia reconfirmed that our 5G solutions are industry-leading. Our Open RAN-ready portfolio includes an AI native, future-proof software architecture that is hardware agnostic. The portfolio integrates with third-party radios and supports Ericsson silicon and third-party CPU/GPUs,” said Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) President and CEO Borje Ekholm.

“Looking ahead, we expect Enterprise organic sales to stabilize in Q4 and the RAN market to remain broadly stable,” he added.

While we acknowledge the risk and potential of ERIC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ERIC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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