Group 1 - Ericsson is in talks with Intel regarding an investment in its network infrastructure business, with the investment amount reaching several hundred million dollars [1] - This investment will make Ericsson a minority shareholder in Intel's newly spun-off network and edge business (NEX), which has historically provided chips for Ericsson's wireless access network hardware [1][2] - Intel has been struggling to keep pace with competitors like TSMC and Samsung, leading to cost-cutting measures and the sale of non-core businesses to improve its financial position [1] Group 2 - Intel has begun seeking strategic investors for the NEX business, similar to its previous transaction with Altera, while retaining a major stake in the new company to benefit from future growth [2] - The newly formed company will focus on chips for communication, networking, and Ethernet connectivity, as stated by NEX CEO Sachin Katti [2] - Ericsson's hardware products rely on chips designed by Intel for manufacturing mobile network equipment, and the two companies have established a closer partnership, with Ericsson planning to base its future infrastructure on Intel's Xeon Next-Gen processors for improved speed and energy efficiency [2]

Group 1 - Nokia has lowered its profit guidance for 2025 due to a weaker dollar and trade tariff issues, now expecting operating profit between €1.6 billion and €2.1 billion, down from a previous forecast of €1.9 billion to €2.4 billion [1] - The adjustment in guidance highlights the impact of the trade war initiated by the Trump administration, affecting supply chains and economic conditions across various industries, particularly for network equipment manufacturers like Nokia and Ericsson [1] - Nokia's stock price fell by 8.2% to €3.77 in Helsinki, marking the largest intraday drop since April 24, while its US shares dropped by 6.11% [1] Group 2 - The company anticipates a loss of approximately €230 million due to currency fluctuations, particularly the dollar exchange rate, and expects tariffs to reduce its annual operating profit by €50 million to €80 million [1] - For the second quarter, Nokia estimates net sales of about €4.55 billion, showing slight growth year-on-year but falling short of analyst expectations of €4.8 billion [2] - Citigroup analyst Andrew Gardiner noted that while market sentiment may be negatively affected, the primary reasons being currency and tariff risks may not be as severe as potential demand or profit issues [2]

Core Viewpoint - Nokia has lowered its full-year operating profit forecast due to adverse effects from exchange rate fluctuations and tariffs [1] Financial Performance - The company now expects comparable operating profit for 2025 to be between €1.6 billion and €2.1 billion, down from the previous forecast of €1.9 billion to €2.4 billion [1] - The anticipated negative impact from exchange rate fluctuations, particularly the weakening of the US dollar, is estimated to be around €230 million [1] - Current tariff conditions are expected to reduce the company's full-year operating profit by €50 million to €80 million [1] - Preliminary financial data for the second quarter shows net sales of approximately €4.55 billion and comparable operating profit of €300 million [1]