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.
11. Gogo Inc. (NASDAQ:GOGO)
Number of Hedge Fund Holders: 26
Gogo Inc. (NASDAQ:GOGO) delivers broadband connectivity solutions to the aviation sector. It provides in-flight internet, voice, and entertainment services. Its infrastructure includes networks, antennas, and onboard systems, which enable seamless communication and data access for passengers and aircraft operators globally.
Only 36% of business jets and 22% of turboprops globally have broadband connectivity currently. This company’s core telecom business centers on providing in-flight connectivity for business and military aircraft. Gogo Inc. (NASDAQ:GOGO) planes saw a 16% increase in data usage compared to last year. Global flight departures have risen by 33% since 2019. The company is investing in new technologies to capitalize on this growth. It has received PMA (Parts Manufacturer Approval) for its Galileo HDX LEO antenna and is developing the Galileo FDX high-speed LEO terminal, which is set to launch in H2 2025.
The company’s 5G ATG network is in development, with chip fabrication underway. It’s pushing its AVANCE platform, which is an easily upgradable hardware and software system, to secure long-term customer relationships. The company is expanding its customer base, with more planes using the GEO service and a record number of customers upgrading to their AVANCE system. This led to a higher ARPU of $3,500 in Q4 2024. The company also received a $334 million grant from the FCC to improve its network infrastructure.
10. Cogent Communications Holdings Inc. (NASDAQ:CCOI)
Number of Hedge Fund Holders: 29
Cogent Communications Holdings Inc. (NASDAQ:CCOI) is an internet service provider that specializes in high-speed internet access and private network services. It caters to bandwidth-intensive businesses and communication service providers. Using its extensive fiber network and data center colocation offerings, it focuses on delivering cost-effective, high-capacity connectivity solutions.
The company’s network infrastructure is expanding rapidly. The company now operates 1,646 carrier-neutral data centers, alongside its own 104 data centers and 55 Edge data centers. This provides a total of 197 megawatts of power. Wavelength services are now available in 808 locations, and the company maintains connections with 8,250 networks. Wavelength services saw a significant surge, with quarterly revenue of $7 million, which was a 124% year-over-year increase.
Cogent Communications Holdings Inc. (NASDAQ:CCOI) is actively managing its sales force, which includes 288 professionals dedicated to the net-centric market, 347 to the corporate market, and 15 to the enterprise segment. The company’s net-centric segment, which was driven by video streaming and AI, generated $93.6 million in Q4 2024 revenue. The company now anticipates annual revenue growth of 5% to 7% per year.
Alphyn Capital Management has been optimistic about the company and stated the following regarding Cogent Communications Holdings Inc. (NASDAQ:CCOI) in its Q3 2024 investor letter:
“In its latest earnings release, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) reported steady, albeit unspectacular, performance in its core operations. There has been some progress on extracting cost synergies from the Sprint acquisition, and there is some potential for value creation through monetizing “hidden assets” from its IPv4 and data center co-location fees. The company has made progress in realizing cost synergies from the spring acquisition and may unlock additional value by monetizing “hidden assets” such as its IPv4 holdings and data center co-location fees. However, the crux of the investment thesis remains the potential for significant revenue growth from waves. Without this catalyst, I believe the stock could drop to the low $60s, but with waves revenues materializing, the upside potential could exceed $150.
It is interesting to see what happened with Lumen, a competitor to Cogent, after announcing a $5 billion deal to build a custom network for Microsoft’s data centers on July 24th. The stock jumped from around $1.50 to approximately $7 per share. From my understanding and based on reading a short seller report,2 Lumen is primarily acting as a contractor in this deal, and it is estimated to retain only $800 million in one-time profits from construction and only $21 million in recurring profits.
In contrast, Cogent has the potential to generate over $500 million in recurring operating profits3 if it can successfully sell its wave revenues over the next few years. The capital expenditure is much more limited, as Cogent is connecting an existing infrastructure that all its customers can use instead of a bespoke construction for just one customer. While I don’t expect the same dramatic market reaction as Lumen’s, Lumen’s stock rally was partly due to relief from its potential bankruptcy risk as the influx of cash will help manage its substantial $18 billion debt; I do think this situation reflects the market’s appetite for companies providing infrastructure critical to AI and cloud development.”
9. Telephone and Data Systems Inc. (NYSE:TDS)
Number of Hedge Fund Holders: 36
Telephone and Data Systems Inc. (NYSE:TDS) is a telecom provider in the US that delivers wireless and wireline services. These include advanced IoT solutions, broadband internet, and cloud-based television. With a focus on both consumer and enterprise clients, it also extends critical connectivity and voice services, particularly in underserved regions.
The company is pivoting to a fiber-centric model. In 2024, the company exceeded its target by delivering 129,000 new fiber service addresses. It’s now aiming for 1.8 million marketable fiber addresses. The company intends to have 80% of its footprint served by fiber so it’s set a goal of delivering 150,000 new fiber service addresses in 2025. This is reflected in its customer adoption rates, with 81% of residential broadband customers opting for speeds of 100 meg or higher, and 22% choosing 1 gig or higher.
The company’s financial performance is tied to this fiber growth, with residential revenues increasing by 6% in 2024. It’s also utilizing internal construction crews to reduce fiber deployment costs by up to 30%. The company divesting copper markets and aims to reduce copper-served addresses to just 5% of its footprint over time. It’s also working towards having 95% of its footprint have access to 1 gig or higher speeds.
8. Iridium Communications Inc. (NASDAQ:IRDM)
Number of Hedge Fund Holders: 38
Iridium Communications Inc. (NASDAQ:IRDM) provides satellite-based mobile voice and data solutions. It offers communications services to sectors like government, maritime, aviation, and IoT. Using its unique low-earth orbit satellite constellation, it delivers reliable connectivity in remote and challenging environments.
The company’s core telecom business centers on its satellite communication services. The company’s commercial IoT saw a 15% growth in Q4 2024, and commercial voice and data revenue increased by 3% in the same period. This is underpinned by the company’s reliable global L-band network, which is a key differentiator in the satellite communication market, particularly for safety and mission-critical applications.
Iridium Communications Inc. (NASDAQ:IRDM) is investing in new technologies and services to further expand its telecom offerings. This includes advancements in IoT with Iridium Certus IoT, which offers faster speeds and direct cloud connectivity. It’s also developing Iridium NTN Direct for direct-to-device communication. Additionally, it’s expanding its presence in the maritime sector with services like GMDSS (Global Maritime Distress and Safety System).
7. Liberty Global Ltd. (NASDAQ:LBTYA)
Number of Hedge Fund Holders: 38
Liberty Global Ltd. (NASDAQ:LBTYA) is an international broadband and communications company that delivers internet, video, telephony, and mobile services to residential and business customers across Europe. With a focus on advanced connectivity and digital entertainment, it offers innovative solutions like high-speed WiFi, cloud-based TV platforms, and integrated fixed-mobile services.
The company’s Liberty Telecom segment delivers phone and internet services across the UK, Ireland, Belgium, and the Netherlands. This segment serves a massive customer base of 80 million connections and generated $22 billion in revenue with $8 billion in profit. In 2024, the company executed strategic moves to boost shareholder value. It spun off its Swiss subsidiary, called Sunrise, which resulted in a $9 per share dividend for shareholders. It’s also developing a new fiber network in the UK, which is projected to reach 16 million homes and generate $1 billion in profit.
In the UK, the company gained internet customers and recovered from mobile phone customer losses. Ireland is actively upgrading its internet infrastructure. The Netherlands is focusing on profitable customer relationships, while Belgium is expanding its internet customer base. The company now aims to use AI to achieve $200 to $300 million in annual cost savings and profit increases. It projects a free cash flow of $350 to $400 million in the UK and $300 million in the Netherlands for 2025.
6. Liberty Broadband Corp. (NASDAQ:LBRDK)
Number of Hedge Fund Holders: 70
Liberty Broadband Corp. (NASDAQ:LBRDK) is a communications-focused holding company with investments in Charter Communications and GCI Holdings. It provides broadband, video, mobile, and enterprise services. Through its Charter segment, it delivers Spectrum-branded internet, TV, and mobile solutions, while GCI Holdings focuses on connectivity services in Alaska and caters to residential, business, and governmental clients.
The GCI segment of the company surpassed $1 billion in revenue for the first time in 2024. This was driven by a 5% increase in revenue during Q4 and a 4% increase for the entire year. This was fueled by strong data revenue, particularly from upgrades in rural Alaskan schools and healthcare corporations. While revenue surged, GCI experienced a slight decline in its consumer base, with a loss of 300 wireless subscribers and 4,900 cable modem subscribers. The latter is largely attributed to the expiration of the ACP program.
To support its expanding network, especially in rural Alaska, GCI invested $193 million in capital expenditures during 2024. For 2025, this investment is projected to increase to ~$250 million, with a focus on enhancing middle and last-mile connectivity. This proactive approach to rural connectivity is crucial for securing government funding and fulfilling the build-out requirements of the Alaska plan. GCI is set to be spun off from Liberty Broadband Corp. (NASDAQ:LBRDK) in late Q2 or early Q3 of 2025, becoming GCI Liberty.
Conventum – Alluvium Global Fund is positive on Liberty Broadband Corp. (NASDAQ:LBRDK) due to its continuous strong performance. Here’s what the fund stated in its Q3 2024 investor letter:
“Liberty Broadband Corporation (NASDAQ:LBRDK) (up 40.7%), has investments in the broadband sector via Charter Communications and GCI Holdings, which represents Liberty’s Alaskan operations. Charter announced pleasing second quarter results. So far it has retained the vast majority of the former Affordable Connectivity Program (ACP) recipients (but this is yet to fully play out), its mobile business is gaining further traction (with a strong reception to its phone upgrade and service plans), and good progress is being made on cost management. Both Liberty and Charter’s share prices rose (by 15.0% and 16.6%) on the release of these results. But there was no cause for any change to our analysis nor valuation – and both still appeared cheap to us. Then, later in the quarter Liberty received a proposal from Charter to consolidate the entities (but excluding GCI). Liberty provided a counter proposal at a higher exchange ratio and that included GCI (which Charter’s initial correspondence suggested may be entertained). Depending on how the value of GCI is accounted, the consideration difference is around 20-25%, which is not insurmountable in our view. The proposed simplified structure makes sense and is likely to be appreciated by investors on both sides. On the day this was announced, it was not surprising that Liberty’s share price was up 28.4%, and Charter’s fell marginally (down 2.5%). In our view, only now after the strong price gains is Liberty’s trading price getting close to fair value. Accordingly, no action was warranted and our Liberty position now stands at 7.1%.”
5. T-Mobile US Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 70
T-Mobile US Inc. (NASDAQ:TMUS) is a wireless communications provider in the US that offers voice, messaging, and data services across postpaid, prepaid, and wholesale channels. With brands like T-Mobile, Metro by T-Mobile, and Mint Mobile, the company delivers smartphones, devices, and high-speed internet with the help of its extensive network and retail presence.
In Q3 2024, the company reported industry-leading postpaid net account additions of 315,000 and postpaid net customer additions of 1.6 million. Postpaid phone net customer additions reached 865,000, which marked the company’s best Q3 in a decade. The company is also rapidly expanding its broadband customer base, which reached 6 million customers within three years, with aims for 12 million by 2028. This growth is driven by the company’s robust 5G network.
The company is innovating with satellite-based mobile services and launching T-Mobile Starlink in partnership with Starlink. This service aims to provide connectivity across 500,000 square miles of the US where traditional cell towers are unavailable. Initially supporting text messaging, it will expand to voice calls and data. Its beta is free until July this year, after which it will be available as part of select T-Mobile US Inc. (NASDAQ:TMUS) plans or as a $15 monthly subscription.
4. Charter Communications Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 71
Charter Communications Inc. (NASDAQ:CHTR) is a major US broadband connectivity and cable operator that delivers internet, video, mobile, and voice services under the Spectrum brand to residential and commercial customers. Focusing on advanced WiFi and fiber connectivity, it also provides sophisticated enterprise solutions and advertising services.
The company’s telecom business is driven by converged connectivity that blends broadband, mobile, and video services. Spectrum Mobile is a key growth engine for the company and added over 2 million lines in 2024. Simultaneously, Charter Communications Inc. (NASDAQ:CHTR) is expanding its broadband footprint, particularly in rural areas. It ended 2024 with 813,000 subsidized rural passings and expects to add another 450,000 in 2025. It’s also deploying faster internet speeds, which include symmetrical 1-gigabit and 2×1 gigabit services.
The company is actively investing in network upgrades and rural expansion but is also focused on operational efficiency and customer service. It’s using AI to improve agent efficiency and provide service credits to ensure customer satisfaction. The end goal is to increase household and product penetration, reduce service transactions and churn, and lower operating and capital costs per customer.
Conventum – Alluvium Global Fund sees significant value in the company’s broadband assets and is strategically managing its positions to capitalize on this. It stated the following regarding Charter Communications Inc. (NASDAQ:CHTR) in its Q4 2024 investor letter:
“We discussed in our last report that Liberty Broadband’s 40.7% return in the September quarter reflected an impending deal (explained here) with its main investment, Charter Communications, Inc. (NASDAQ:CHTR). In early November Charter released its third quarter update, which the market (and us) viewed favourably, and Liberty’s share price rose 11.7% on the day. As a result, the Fund’s position in Liberty reached 8.4%. Cognisant of the 5/10/40 UCITS restrictions (yet wanting to maintain our position in the underlying assets) we sold a fair chunk of Liberty (to get it under 5%) and bought a little Charter. A short time later the companies reached agreement on the consolidation deal. The market’s reaction (Liberty’s share price fell 4.7% on the day, whereas Charter’s rose 3.6%) suggests this was less favourable to Liberty than anticipated (we suspect due to the long timeframe). And as Liberty fell 3.2% and Charter rose 5.8% over the quarter, the discount that Liberty trades (to the implied Charter price) has only widened. This is unwarranted in our view, particularly as one of Liberty’s businesses, GCI, is not part of the deal. Our focus is on having access to these assets at the best possible price. We are not perturbed by the deal, whether or not it consummates, nor its timeline. And, there are no additional costs to holding Liberty rather than Charter (nor any foregone dividends). On our analysis, these US broadband assets (via the Charter corporate structure) are providing a circa 9.0% earnings yield and 6.5% free cash flow yield, which we are confident will continue to grow. We are comfortable with the Fund’s 5.6% investment, as represented by its positions of 1.5% in Charter and 4.1% in Liberty.”
3. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 74
Verizon Communications Inc. (NYSE:VZ) is a telecom leader that provides wireless and wireline services to consumers, businesses, and government entities. Operating through its Consumer and Business segments, it delivers advanced mobile connectivity, fiber-optic broadband, and enterprise solutions, which include IoT and security services.
In 2024, the company achieved a 3.1% year-over-year increase in wireless service revenue and added nearly 2.5 million postpaid mobility and broadband subscribers. Postpaid phone net additions reached nearly 900,000 for the year, with positive contributions from both consumer and business segments. In broadband, the company added nearly 1.6 million subscribers. This was driven largely by fixed wireless access (FWA), which now boasts over 4.6 million subscribers and generated $2.1 billion in revenue. The company is targeting 8 to 9 million FWA subscribers by 2028.
Through its Verizon AI Connect initiative, the company is using its extensive fiber and edge compute assets to provide high-capacity connectivity and computing solutions for AI applications. It’s collaborating with industry leaders like NVIDIA and Vultr with already secured customer contracts that indicate significant potential for this new business segment.
Third Point Management views the company’s acquisition of Frontier positively, as it has driven a beneficial revaluation of fiber networks and highlights the strategic value of high-end fiber infrastructure. It stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:
“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”
2. Comcast Corp. (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 80
Comcast Corp. (NASDAQ:CMCSA) is a global media and technology conglomerate that offers residential and business connectivity services. These include broadband, wireless, and video solutions. Through its Business Services Connectivity segment, it provides network services to enterprises, while its Residential Connectivity & Platforms segment delivers communication services to consumers.
In 2024, the company’s broadband revenue grew by 3% year-over-year, and convergence revenue, which combines broadband and wireless, grew by nearly 5%. However, the company experienced a loss of 139,000 broadband subscribers in Q4, although ARPU increased by 3.1%. Wireless revenue saw substantial growth and increased at a mid-teens rate. It added 1.2 million new lines in 2024 and brought the total to 7.8 million. This represents a 12% penetration of the company’s broadband customer base.
Comcast Corp. (NASDAQ:CMCSA) is upgrading its network infrastructure to deliver multi-gigabit symmetrical speeds through Project Genesis, with over 50% of the network already virtualized and a goal of 70% by the end of the year. This network upgrade is crucial for maintaining competitiveness against fiber overbuilds and fixed wireless expansion. It’s also using its extensive network, which includes 64 million homes passed with gig-speed internet and hundreds of thousands of miles of fiber, to enhance its converged offerings.
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 80
AT&T Inc. (NYSE:T) is a global telecom and technology provider that delivers wireless and wireline services to consumers and businesses. Operating through its Communications segment, it offers mobile, internet, and enterprise solutions, which include fiber and fixed wireless. It also serves the Latin American market with wireless services in Mexico under the AT&T and Unefon brands.
In 2024, the company’s Mobility segment added 1.7 million postpaid phone subscribers and achieved a 3.5% service revenue growth. The company anticipates leading the industry in postpaid phone churn for the 4th consecutive year. The Consumer Wireline segment, which is focused on fiber, added over 1 million fiber subscribers for the 7th straight year. In Q4 2024, it added a record 307,000 AT&T fiber subscribers. AT&T Internet Air also added over 0.5 million subscribers in 2024. Fiber revenue grew by ~18% in 2024.
AT&T Inc. (NYSE:T) invested $22 billion in capital expenditures in 2024 and plans to maintain this level in 2025 by focusing on modernizing its 5G and fiber networks. It’s also working to phase out its legacy copper network by 2029. For 2025, the company projects an adjusted EPS of $1.97 to $2.07 and free cash flow of $16 billion or more.
TCW Relative Value Large Cap Fund is positive on AT&T Inc. (NYSE:T) due to its strong management, successful restructuring, improved financial outlook, and commitment to sustainability. The fund stated the following in its Q3 2024 investor letter:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
While we acknowledge the growth potential of AT&T Inc. (NYSE:T), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than T but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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