Ericsson (NASDAQ:ERIC) and Super Micro Computer (NASDAQ:SMCI) on Tuesday announced plans to engage in a strategic collaboration to accelerate Edge AI deployment.

The companies have inked a Memorandum of Understanding to combine Ericsson’s 5G wireless technology with Supermicro’s edge AI platforms, creating a commercial bundle that simplifies the deployment of AI applications at the network edge.

The combination of Supermicro and Ericsson technology will help businesses in retail, factories, health care, and other industries rapidly deploy Edge AI infrastructure with wireless connectivity.

Also Read: Supermicro Eyes Texas, Mississippi For AI Server Growth As Microsoft, Amazon Increase Spending

Super Micro stock is down over 45% in the last 12 months. The company reported third-quarter net revenue of $4.6 billion, up by 19% year-over-year below the analyst consensus estimate of $5.42 billion. However, the revenue declined by 19% quarter-over-quarter.

Needham analyst Quinn Bolton attributed the miss to delayed commitments due to customers waiting and evaluating next-gen AI platforms (Blackwell).

Bolton said the quarterly adjusted gross margin came in at 9.7%, below the Street’s 10.1% estimate, due to higher inventory reserve charges on older Hopper systems, lower volume, and accelerated new-product costs.

Management highlighted product transitions from Hopper to Blackwell and tariff uncertainty as key contributors to near-term weakness.

Ericsson is up over 38% in the last 12 months. Bloomberg’s Matthew Bloxham expects Ericsson to tackle global tariff storms better than analysts’ expectations via cost-cutting tailwinds, preemptive U.S. inventory restocking, and limited exposure to China-sourced components.

Price Actions: SMCI stock is trading lower by 0.39% to $42.95 premarket at last check Tuesday. ERIC stock is up 0.24%.

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