Why T-Mobile US Inc (TMUS) Is Surging In 2025?

We recently published a list of Why These 15 Telecom Stocks Are Surging In 2025. In this article, we are going to take a look at where T-Mobile US Inc (NASDAQ:TMUS) stands against other telecom stocks that are surging in 2025.

The telecom sector has seen many ups and downs in the past few years. Post-COVID, these stocks declined even more due to the inflation wave and the subsequent interest rate hikes. Telecommunication companies usually have significant debt on their balance sheets due to infrastructure CapEx, and they were among the hardest hit.

However, rates are now slowly coming down, and these stocks are also starting to bottom out and turn a corner. Many telecom stocks are still profitable and pay dividends. Falling bond yields are making them even more attractive. It’s a good idea to keep tabs on which telecom stocks are spearheading the gains so far this year.

Methodology

For this article, I screened the best-performing telecom stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. 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).

A customer checking out their new device at a T-Mobile store, illustrating the convenience and accessibility of retail stores.

T-Mobile US Inc (NASDAQ:TMUS)

Number of Hedge Fund Holders In Q4 2024: 70

T-Mobile US Inc (NASDAQ:TMUS) is one of the leading telecommunications companies.

The stock is up significantly so far in 2025 as T-Mobile announced an agreement to sell its 800 MHz spectrum portfolio to Grain Management LLC while acquiring Grain’s 600 MHz spectrum licenses.

The transaction will optimize the company’s spectrum assets and allow it to build out 5G services better.

Its 5G-Advanced network with 6-carrier aggregation technology also allowed the company to have record-breaking speeds.

TMUS stock has outperformed the broader telecom sector massively and did not decline in the past few years. As many telecom stocks now rebound, TMUS has been accelerating and building on its gains even more.

The consensus price target of $255.8 implies 1.22% downside.

TMUS stock is up 17.70% year-to-date.

Overall, TMUS ranks 7th on our list of telecom stocks that are surging in 2025. While we acknowledge the potential of TMUS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TMUS 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.

Disclosure: None. This article is originally published at Insider Monkey.