The global telecom services industry was estimated at $1,983.08 billion in 2024, according to Grand View Research. This number is projected to reach $2,874.76 billion by 2030, given that the industry grows at a CAGR of 6.5% from 2025 to 2030. One of the reasons behind this growth is the rising spending on the deployment of 5G infrastructures due to the shift in customer inclination toward next-gen technologies and smartphone devices. The Deloitte Center for Technology, Media & Telecommunications highlighted the industry’s drive to re-enter a growth phase. Despite telecom stocks increasing by about 11% in 2024, the number lagged behind the S&P 500’s 25% and NASDAQ’s 30% gains, which prompted telecom CEOs to seek new avenues for higher stock valuations.
The industry, historically oscillating between high-growth and slow-but-steady periods with average global dividend yields of about 4%, is projected to focus on cost-cutting, capital expenditure control, monetizing past investments, and strategic M&A through 2030. A key focus for 2025 is GenAI, which telcos aim to use for the aforementioned goals. While hundreds of billions to over a trillion dollars are expected to be spent on GenAI’s physical infrastructure over the next 5 years, and nearly another hundred billion on software and services, telcos primarily see opportunities in providing connectivity for this ecosystem. This includes both intra-data center connectivity and massive long-haul fiber networks connecting data centers across regions or continents.
Big tech players are projected to spend over $100 billion on network capital expenditure between 2024 and 2030, which represents 5% to 10% of their total capital expenditure in that period, an increase from a historical average of 4% to 5%. While initial GenAI use cases are often text-based and not bandwidth-intensive, potential future demand could arise from real-time video, although on-device GenAI processing chips may reduce the need for high-speed network connectivity.
That being said, we’re here with a list of the 10 best telecom stocks to buy according to Wall Street analysts.
An aerial view of a telecom tower, representing the company’s dedication to communication services.
Methodology
We sifted through the Finviz stock screener to compile a list of the top telecom stocks that had a high average upside potential of over 30% as of June 24. The stocks are ranked in ascending order of their average upside potential. We’ve also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database, as of Q1 2025. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 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).
10 Best Telecom Stocks to Buy According to Wall Street Analysts
10. KVH Industries Inc. (NASDAQ:KVHI)
Number of Hedge Fund Holders: 6
Average Upside Potential as of June 24: 31.83%
KVH Industries Inc. (NASDAQ:KVHI) is one of the best telecom stocks to buy according to Wall Street analysts. Earlier in May, KVH Industries launched the CommBox Edge Secure Suite, which is an advanced service designed to support cybersecurity for maritime operations. The new offering aims to detect, prevent, and report cybersecurity threats.
The offering will also actively block harmful traffic in real time to safeguard vessel communications and network security. KVH’s CommBox Edge platform is a management tool for maritime IT professionals, and the Secure Suite is integrated as a service option within this platform. It is compatible with CommBox Edge 6 and Edge 2 below-deck appliances, as well as the CommBox Edge virtual machine option.
The Secure Suite utilizes sophisticated cybersecurity technologies, such as Cisco Talo. The system can manage up to 30 onboard local area networks and offer secure remote access to networked devices, high-speed virtual private network/VPN links, and deep packet inspection.
KVH Industries Inc. (NASDAQ:KVHI) designs, develops, manufactures, and markets mobile connectivity solutions for the marine and land mobile markets in the US and internationally.
9. WideOpenWest Inc. (NYSE:WOW)
Number of Hedge Fund Holders: 13
Average Upside Potential as of June 24: 34.84%
WideOpenWest Inc. (NYSE:WOW) is one of the best telecom stocks to buy according to Wall Street analysts. On June 23, WOW! Internet, TV & Phone (brand name under which WideOpenWest markets) announced a $10,000 donation to the Hernando County Education Foundation/HCEF. The non-profit organization is dedicated to advancing student achievement and promoting excellence within Hernando County’s public education system.
The donation followed the recent launch of the company’s all-fiber internet services in Spring Hill and Hernando Beach in Florida. The funds were specifically used to sponsor HCEF’s annual Summer Reading and STEM Bash, a free event for local families held on June 21.
The event featured books, interactive STEM projects, and various children’s activities that explored careers in engineering, energy, environmental sustainability, and reading. As part of its Greenfield expansion initiative, WOW! plans to extend its all-fiber network to 44,000 homes in Hernando County, including Spring Hill and Hernando Beach. WOW! currently serves customers in 20 markets across the Midwest and Southeast.
WideOpenWest Inc. (NYSE:WOW) provides high-speed data, cable television, and digital telephony services to residential and business customers in the US.
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