Ericsson’s shares have soared more than 30 percent year-to-date, underpinned by progress toward meeting its 2020 financial targets and hopes for a 5G-led industry growth cycle.
The Swedish mobile telecom gear maker appears to be benefitting from rising competition among the four top U.S. carriers, which are all desperately trying to be the first to deliver 5G in dozens of American cities.
“We see very strong momentum in the 5G market and actually already today there are commercial networks available in North America. So, 5G is not a buzzword anymore — it is actually reality, it is happening,” Ekhom said.
“We are well positioned (for 5G) and we continue to invest to provide our customers with the best products to launch 5G as quickly as possible and as effortless as possible.”
5G has become somewhat of a litmus test for technology leadership in America’s intensifying stand-off with China over trade and national security.
Ericsson — which was once one of the world’s biggest suppliers of mobile communications gear — is facing a number of headwinds at present, including falling spending among telecom operators and stiff competition from the likes of Huawei and Nokia.
Shares of Ericsson surged towards the top of the European benchmark on Thursday, up more than 4 percent during mid-morning deals.