Ericsson and Nokia Gain on Huawei Africa Push

Ericsson shares have climbed to $10.31 from $9.71 over the latest cited stretch, while Nokia rose to $11.13 from $10.76, with both stocks trading above their 50-day moving averages. Ericsson’s relative strength is more stretched, with its RSI at 53.1 after earlier running as high as 78, while Nokia’s RSI is 63.8, suggesting investor interest remains firm without the kind of extreme overbought signal seen earlier in the rally.

The broader backdrop is a renewed hardening in U.S.-China relations across technology. Adalytica’s U.S.-China Relations Sentiment gauge is at 96, or “Extreme Greed,” even as awareness remains low at 30, underscoring how quickly the issue can flare without a corresponding broad market focus. At the same time, Adalytica’s S&P 500 Trade Signals show “Extreme Fear,” a reminder that geopolitics is colliding with already fragile risk appetite.

For investors, the key question is whether Washington’s effort to steer operators away from Huawei becomes a durable procurement shift or a one-off political statement. If it sticks, Ericsson and Nokia stand to gain share in markets where buyers want to reduce exposure to Chinese vendors; if it fizzles, the incumbency and pricing power of Huawei remains intact.

The next catalyst is whether more carriers, including in Africa, move to publicize vendor switches or award fresh contracts, and whether U.S. policy turns into financing support that can offset Huawei’s cost advantage.