The global telecom services market is estimated at $1.98 trillion as of 2024, according to Grand View Research. It is projected to grow at a CAGR of 6.5% from 2025 to 2030. This expansion is driven by the increasing expenditures on 5G infrastructure deployment, which is fueled by a shift in customer preference towards next-generation technologies and smartphone devices. Additionally, the rising number of mobile subscribers, the soaring demand for high-speed data connectivity, and the growing need for value-added managed services are key factors that contribute to this market growth.
Initially a trend in 2019, 5G has solidified its position as a critical driver of the industrial economy. The Future of Commerce reported that the global 5G connections are projected to surge from 1.76 billion in 2023 to 7.9 billion by 2028. This indicates that 5G will constitute over half of all connections, as per reports from 5G Americas and Omdia. This expansion is driven by investments from government and telecom companies, as well as the demand for faster internet speeds, lower latency, and improved battery life. While 5G deployment continues, 6G is emerging and promises ultra-high data speeds via terahertz spectrum bands, low latency, and AI integration. It aims to revolutionize communication through applications like smart grids and immersive XR experiences. However, challenges like energy efficiency and responsible AI integration remain. Telecom companies stand to capture a $100 billion opportunity within the 5G economy.
AI is deeply ingrained in the telecom sector as well. It evolved from basic echo cancellation in the 1950s to sophisticated algorithms for network management and failure prediction. In 2025, AI’s role will intensify, with global telco investments projected to rise from $3.34 billion in 2024 to $58.7 billion by 2032. AI is crucial in network topology improvements. It facilitates self-healing networks, automated transitions, and AR applications. It will drive 6G’s evolution towards connected intelligence and enhance predictive maintenance, fault detection, security, and customer experiences through predictive and cognitive AI.
The telecom industry is poised to advance with 5G’s continued growth and 6G’s emerging capabilities. With that, we’re here with a list of the 13 best telecom stocks to buy according to hedge funds.
A businessman looking up in awe at the top of a telecom tower as it spreads its vast interconnectivity.
Our Methodology
We used the Finviz stock screener to compile an initial list of top telecom stocks. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best Telecom Stocks to Buy According to Hedge Funds
13. BCE Inc. (NYSE:BCE)
Number of Hedge Fund Holders: 22
BCE Inc. (NYSE:BCE) is a Canadian telecom provider that delivers wireless, wireline, and internet services. It also provides enterprise solutions and extensive network infrastructure. Its Bell Media segment provides an array of video, audio, and digital media services.
The company’s Bell CTS (Communications and Technology Services) segment showed resilience in Q4 2024 despite market competition. Postpaid net additions were 56,550, all on the premium Bell brand. While mobile phone ARPU declined by 2.7%, it was an improvement from Q3. Internet revenue grew 3.3%, and the Fiber to the Home network reached 3 million customers, which was a 10% annual increase.
BCE Inc. (NYSE:BCE) is prioritizing fiber expansion and 5G wireless growth. The company is lowering CapEx and budgeting $3.4 billion for 2025. This was a $500 million reduction from 2024. The company is also focusing on cost-saving initiatives and aims for $1 billion in savings by 2028. It’s exploring the sale of non-core assets to strengthen its balance sheet.
12. Vodafone Group (NASDAQ:VOD)
Number of Hedge Fund Holders: 24
Vodafone Group (NASDAQ:VOD) is a telecom giant that delivers mobile and fixed connectivity services, alongside advanced enterprise solutions. These include cloud, IoT, and cybersecurity. With a strong presence in Europe and Africa, it also provides innovative digital services like M-PESA and integrated communication platforms.
The company is currently navigating a challenging German telecom market, which significantly impacted its overall performance. The company experienced a 3.8% year-over-year headwind in FQ2 2025 due to the MDU TV customer migration, with a 1.5% sequential drop from broadband price increases. The company anticipates this impact continuing into FQ3, before easing in FQ4.
Despite this, Vodafone Group (NASDAQ:VOD) is expanding its gigabit-capable broadband reach and now covers 75% of German households, which includes an additional 5 million through new fiber wholesale agreements. The company is aiming for a U-shaped recovery in Germany, with FQ2 marking the bottom. It anticipates positive growth returning by FY26. It’s monitoring the increasingly competitive German mobile market, where it’s maintaining pricing discipline amidst aggressive moves from competitors.
