That is the mechanism behind Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)’s worst single-day stock reaction in nearly three years. Meanwhile, reported net sales declined 6% to SEK 52.7 billion ($5.62 billion), missing the SEK 53.71 billion forecast, while organic sales excluding currency and one-offs remained essentially flat. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) is currently trading at a 14.45x forward P/E multiple, representing a significant discount to key infrastructure rivals such as Nokia, which trade on similar 5G-cycle and edge-connectivity theses. Short interest in Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) sits at a modest 2.1% of the float, suggesting bears aren’t piling into short positions to bet on further structural downside. 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.