10 Best Telecom Stocks to Invest In

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1. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 84

AT&T Inc. (NYSE:T) ranks among the best telecom stocks to invest in. On December 19, Goldman Sachs reduced its price target for AT&T Inc. (NYSE:T) to $29 from $33, maintaining a Buy rating on the company’s shares. According to the firm, AT&T Inc. (NYSE:T) is expected to earn an 8% free cash flow CAGR through 2029, which will enable faster share repurchases, powered by consistent Mobility EBITDA growth, rapidly growing fiber transmissions, and better Business Wireline trends.

Goldman Sachs added that AT&T’s industry-leading capital expenditure and growing fiber footprint, which could be strengthened by the Lumen Mass Markets acquisition, should boost convergence benefits and prepare the network for expanding AI-driven traffic.

Conversely, on December 15, Wolfe Research downgraded AT&T Inc. (NYSE:T) to Peer Perform from Outperform, citing a “wait and see” stance. Although the firm continues to see AT&T Inc. (NYSE:T) as a long-term strategic winner, it identified increased near-term risks due to evolving market conditions.

Wolfe claims that pricing and promotional adjustments could have an impact on postpaid phone ARPU growth in 2026, which the firm projects will be only 0.3% year-over-year, as well as subscriber growth.

Leading telecommunications firm AT&T Inc. (NYSE:T) provides a wide range of wireless communication services and data solutions to a number of customer groups, including corporations, governmental organizations, wholesale customers, and individual consumers.

While we acknowledge the potential of T to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than T and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

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