On January 22, Erik Ekudden, Chief Technology Officer at Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), spoke to CNBC-TV18 at the World Economic Forum 2026 in Davos about how AI will change the future of mobile networks. He believes that AI-powered 5G will open up new opportunities and help the industry move toward 6G.

Ekudden explained that the rise of agentic AI, where multiple AI agents work together on complex tasks, will significantly change network traffic patterns. This shift will force telecom companies to rethink how networks are designed, built, and run.

He said that “when agents start talking to each other and creating bigger solutions, that’s where the real change happens.” Ekudden pointed out that “a single workflow could involve tens or even hundreds of agents interacting simultaneously. That completely changes the nature of network traffic.”

While agentic AI is often seen as a future development, Ekudden explained that the groundwork is already being laid through 5G standalone networks. He said that AI-powered 5G supports the low latency, high reliability, and strong uplink performance needed to enable AI-driven workflows.

Ekudden said that we “don’t need to wait for 6G to benefit from AI.” He added that “AI-powered 5G is already delivering real value, and it is the starting point for what comes next.”

With this background in mind, let’s take a look at the 12 best 5G stocks to invest in according to hedge funds.

Our Methodology

To compile our list of the 12 best 5G stocks to invest in according to hedge funds, we reviewed our own rankings, financial media reports, and various online resources to compile a list of the best 5G stocks. Next, we focused on the top 12 stocks most favored by hedge funds. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 12 best 5G stocks to invest in were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2025.

Why do we care about what hedge funds do? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

12 Best 5G Stocks to Invest In According to Hedge Funds

12. Charter Communications, Inc. (NASDAQ:CHTR)

Number of Hedge Fund Holders: 53

Charter Communications, Inc. (NASDAQ:CHTR) is one of the best 5G stocks to invest in according to hedge funds. On January 13, Wells Fargo downgraded its rating on Charter Communications, Inc. (NASDAQ:CHTR) from Equal Weight to Underweight and lowered its price target from $240 to $180.

Wells Fargo believes that the broadband market will continue to stay competitive, with fiber and fixed wireless access continuing to take market share from cable in 2026. The firm noted that Charter Communications, Inc. (NASDAQ:CHTR) is seeing weaker net additions, challenged growth at Cox, and a free cash flow outlook that depends on subscriber numbers stabilizing. Wells Fargo pointed out that it no longer sees “meaningful differentiation” for the company.

Previously, on December 22, UBS also reduced its price target on Charter Communications, Inc. (NASDAQ:CHTR) from $355 to $233 and maintained a Neutral rating on the stock.

UBS expects ongoing competition in broadband, higher costs, and tough political advertising comparisons in the fourth quarter to result in declines in year-over-year revenue and EBITDA. The firm forecasts revenue to decline 1.7% and EBITDA to fall 2.7%, leading to relatively flat full-year performance. For 2026, UBS expects revenues to remain flat and EBITDA to grow modestly. UBS noted that cost reduction efforts and political tailwinds could help offset low single-digit declines in residential revenue.

Charter Communications, Inc. (NASDAQ:CHTR) is an American broadband connectivity company and cable operator that provides internet, video, mobile, and voice services.

11. Crown Castle Inc. (NYSE:CCI)

Number of Hedge Fund Holders: 56

Crown Castle Inc. (NYSE:CCI) is one of the best 5G stocks to invest in according to hedge funds. On January 21, KeyBanc Capital Markets lowered its price target on Crown Castle Inc. (NYSE:CCI) from $120 to $115 and kept its Overweight rating. This update comes after the company reported that DISH Wireless has defaulted on its payment obligations. As a result, KeyBanc removed all DISH-related leasing from its forecasts.

The research firm cut $12 million in expected leasing from its 2026 estimates for Crown Castle Inc. (NYSE:CCI) and added $200 million in churn to its 2027 estimates to reflect the DISH default’s expected impact.

Despite this reduction in the price target, KeyBanc pointed out that Crown Castle Inc. (NYSE:CCI) is still one of its “favorite ideas.” The firm also noted that it is not including any possible payments DISH may owe the company under the master lease agreements, which it believes will ultimately be decided by the courts.

In other news, on January 20, UBS reduced its price target on Crown Castle Inc. (NYSE:CCI) from $127 to $116 and maintained its Buy rating.

Earlier, on January 14, Scotiabank also cut its price target on Crown Castle Inc. (NYSE:CCI) from $114 to $96 and maintained a Sector Perform rating.

Crown Castle Inc. (NYSE:CCI) is a real estate investment trust (REIT) and provider of shared communications infrastructure in the US. The company owns and leases over 40,000 cell towers and about 90,000 route miles of fiber, supporting small cells and fiber solutions across major US markets and enabling essential data, technology, and wireless services.