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.
10. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 60
Verizon Communications Inc. (NYSE:VZ) is one of the best 5G stocks to invest in according to hedge funds. On January 22, Barclays restarted its coverage on Verizon Communications Inc. (NYSE:VZ) with an Equalweight rating and a price target of $43. The firm noted that the company has limited options to improve unit growth because of dividend commitments, the need for cash to support restructuring and integration, a high-priced back book, and the need to lower debt.
According to Barclays, Verizon Communications Inc.’s (NYSE:VZ) volume turnaround is expected to be modest. Despite significant cost-cutting efforts over a short period, the firm believes the company is likely to remain the slowest-growing in the industry over the next 1 to 2 years.
Earlier, on January 15, Bernstein reduced its price target on Verizon Communications Inc. (NYSE:VZ) from $46 to $44 and kept its Market Perform rating. Bernstein noted that the telecom industry is entering a new phase of competition. According to the research firm, this intense competitive environment is expected to persist in 2026, with few signs of improvement based on recent strategic moves in the industry.
Verizon Communications Inc. (NYSE:VZ) is an American technology and telecommunications company that provides network connectivity, entertainment, and security solutions.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 63
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the best 5G stocks to invest in according to hedge funds. On January 15, Citi reiterated its Neutral rating on QUALCOMM Incorporated (NASDAQ:QCOM) with a price target of $180 following a coverage reshuffle. Citi noted that the stock is currently trading above its historical valuation levels.
Earlier, on January 14, RBC Capital analyst Srini Pajjuri initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM), assigning the stock a Sector Perform rating and setting a price target of $180. RBC Capital pointed out that the stock has lagged the SOX semiconductor index over the past year, attributing this underperformance to weak growth in the smartphone market, modem in-sourcing at Apple Inc. (NASDAQ:AAPL), and a lack of compelling data center AI narrative.
The research firm expects QUALCOMM Incorporated’s (NASDAQ:QCOM) revenue growth to stay muted over the next two years. RBC Capital pointed to the company’s recent AI accelerator product announcement but noted that it may take time before it can translate into meaningful revenue. The firm sees QUALCOMM Incorporated’s (NASDAQ:QCOM) valuation as reasonable at around 14x P/E and highlighted the company’s solid cash returns.
QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational corporation that creates semiconductors, software, and services related to wireless technology. Its portfolio includes products for processors, modems, platforms, RF systems, and connectivity.
8. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 70
Ciena Corporation (NYSE:CIEN) is one of the best 5G stocks to invest in according to hedge funds. On January 20, BofA Securities downgraded its rating on Ciena Corporation (NYSE:CIEN) from Buy to Neutral. The firm said it is becoming more cautious about near-term spending on AI-driven networking despite the long-term outlook still staying solid.
BofA Securities noted that valuations across networking stocks are now well above historical levels. Hyperscaler capital spending growth is also expected to slow in 2026. The investment firm expects hypercaler capital expenditure to grow just 39% in 2026, compared with 68% in 2025.
According to BofA Securities, this slowdown could shift investor focus toward order trends, backlog, and deferred revenue. The firm believes that the near-term outlook for the sector has become more difficult. BofA Securities pointed out that while Ciena Corporation’s (NYSE:CIEN) revenue growth could still beat expectations, risks around peak backlog levels, valuation, and high investor expectations are rising.
Previously, on December 17, Morgan Stanley maintained its Equal Weight rating on Ciena Corporation (NYSE:CIEN) and lowered its price target from $195 to $213.
Ciena Corporation (NYSE:CIEN) is an American optical networking systems and software company that specializes in networking systems, components, automation software, and related services.
7. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 75
American Tower Corporation (NYSE:AMT) is one of the best 5G stocks to invest in according to hedge funds. On January 20, UBS reduced its price target on American Tower Corporation (NYSE:AMT) from $260 to $254 and kept its Buy rating. The firm believes that the risk-reward outlook for tower companies looks favorable in 2026.
Previously, on January 9, BMO Capital downgraded its rating on American Tower Corporation (NYSE:AMT) from Outperform to Market Perform and reduced its price target from $210 to $185. The firm’s analyst, Ari Klein, pointed to concerns about ongoing issues linked to DISH Network.
BMO Capital removed contributions from DISH from its financial model for American Tower Corporation (NYSE:AMT). The research firm cited “potential for non-payment and reserves.” BMO Capital pointed out that the timing and final outcome of any resolution with DISH remain uncertain.
The firm indicated that the company could see “a material discount” to the net present value of about $1.6 billion in its DISH-related business. Due to this uncertainty, BMO Capital decided to “move to the sidelines” on American Tower Corporation (NYSE:AMT).
American Tower Corporation (NYSE:AMT) is an American real estate investment trust (REIT) that provides the infrastructure for modern digital communications. It owns, develops, and operates wireless and broadcast communications infrastructure. The company offers solutions and services for deploying and supporting wireless networks in 22 countries across 5 continents.
6. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 75
Corning Incorporated (NYSE:GLW) is one of the best 5G stocks to invest in according to hedge funds. On January 13, BofA Securities increased its price target on Corning Incorporated (NYSE:GLW) from $95 to $110 and maintained its Buy rating on the stock ahead of the company’s Q4 earnings report scheduled for January 28.
BofA Securities expects Corning Incorporated (NYSE:GLW) to deliver results in line with expectations for the quarter. Looking ahead to fiscal 2026, the research firm believes that the company will likely guide its Display business to remain profitable and provide additional details on its Optical, Solar, and Specialty segments.
Earlier, on December 17, Morgan Stanley also increased its price target on Corning Incorporated (NYSE:GLW) from $82 to $98 and kept an Equal Weight rating on the stock. The research firm noted that the AI trade expanded beyond semiconductor stocks in 2025, benefiting infrastructure companies, especially in the optical space.
Morgan Stanley expects this trend to continue, particularly for optical, through the first half of 2026. However, the firm cautioned that investors will “need to get more selective for full year returns given multiples.”
Corning Incorporated (NYSE:GLW) is a global materials science company that develops and manufactures advanced glass, ceramics, and optical products. It serves several markets, including optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences. The company provides the essential fiber-optic cables and connectivity hardware for 5G network infrastructure.
5. EchoStar Corporation (NASDAQ:SATS)
Number of Hedge Fund Holders: 79
EchoStar Corporation (NASDAQ:SATS) is one of the best 5G stocks to invest in according to hedge funds. On January 7, TD Cowen raised its price target on EchoStar Corporation (NASDAQ:SATS) from $100 to $158 and maintained its Buy rating on the stock.
The research firm expects EchoStar Corporation (NASDAQ:SATS) to report solid fourth-quarter results. However, TD Cowen noted that the company’s “fundamentals will likely take a backseat for yet another quarter.” The firm highlighted that the higher price target is based on an updated sum-of-the-parts analysis of the company’s assets following the start of the spectrum sale process, particularly its stake in SpaceX.
Previously, on December 23, Citi also raised its price target on EchoStar Corporation (NASDAQ:SATS) from $87 to $111 and maintained a Neutral rating on the stock. Citi pointed to recent press reports suggesting a possible secondary share sale at a potential private valuation of $800 billion for SpaceX.
The research firm noted that this valuation would be twice the pre-tax value of the cost basis for its SpaceX shares, expected to be received by EchoStar Corporation (NASDAQ:SATS) once its pending spectrum sales are completed.
EchoStar Corporation (NASDAQ:SATS) is a global telecommunications company that provides networking services, television entertainment, and connectivity solutions to consumers, enterprises, operators, and governments.
4. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 81
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the best 5G stocks to invest in according to hedge funds. On January 15, Bernstein reduced its price target on T-Mobile US, Inc. (NASDAQ:TMUS) from $265 to $245 and kept its Market Perform rating.
Bernstein believes that the telecom and cable industry is entering a new phase of competition. The research firm noted that each quarterly update in 2025 showed worsening competitive conditions, which erased many of the gains telecom companies had made in the first half of 2025. The cable companies also continued to experience declines in the second half of the year. According to Bernstein, this increased competition in the industry is likely to continue into 2026, with recent strategic moves offering little sign of improvement.
Earlier, on January 7, Scotiabank also reduced its price target on T-Mobile US, Inc. (NASDAQ:TMUS) from $278 to $270.50 and maintained its Outperform rating.
Scotiabank updated its price targets across the telecommunications services sector ahead of fourth-quarter earnings. The research firm pointed out that promotional activity was high during the holiday season. Despite this, industry revenue and EBITDA growth remain positive.
T-Mobile US, Inc. (NASDAQ:TMUS) is a telecommunications company that delivers wireless communication services, including mobile phone and internet services. It provides an advanced 4G LTE and 5G network in the US.
3. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 84
Comcast Corporation (NASDAQ:CMCSA) is one of the best 5G stocks to invest in according to hedge funds. On January 15, Bernstein reduced its price target on Comcast Corporation (NASDAQ:CMCSA) from $34 to $32 and maintained its Market Perform rating.
The research firm noted that the industry is entering a new phase of competition. Bernstein pointed out that quarterly updates throughout 2025 showed worsening competitive dynamics, wiping out much of the gains telecom companies had made in the first half of the year. Cable companies continued to decline in the second half of 2025. Bernstein expects this intense competition to continue into 2026, with no signs of improvement.
Earlier, on January 12, BofA Securities upgraded its rating on Comcast Corporation (NASDAQ:CMCSA) from Neutral to Buy while noting that the company is nearing an opportunity to unlock value at NBCUniversal as consolidation picks up in the industry and investors take a fresh look at media assets.
BofA Securities raised its price target from $31 to $37 and pointed out that it is now valuing Comcast Corporation (NASDAQ:CMCSA) on a sum-of-the-parts basis. BofA argued that Comcast’s media assets have long been held back by a conglomerate discount, which the firm believes still weighs on the stock price. Additionally, BofA noted that AI adoption in content creation, marketing, and operations could help reduce costs and boost margins.
Comcast Corporation (NASDAQ:CMCSA) is an American media and technology company that is focused on telecommunications and entertainment. The company provides home internet services and telephone services in the US. Through its Xfinity Mobile service, it offers 5G coverage nationwide in the US.
2. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 84
AT&T Inc. (NYSE:T) is one of the best 5G stocks to invest in according to hedge funds. On January 15, Bernstein named AT&T Inc. (NYSE:T) as its top pick in the US telecom market for 2026, even as competition in the industry is expected to grow. The research firm noted that the telecom sector is “entering a new era of competition” after a difficult 2025, when quarterly updates pointed to “worsening competitive dynamics.”
These challenges erased much of the gains made by telecom companies. Cable providers also continued to see declines in the second half of the year. Despite this, Bernstein expects AT&T Inc. (NYSE:T) to “continue driving healthy Fiber and FWA net additions.” This growth is expected to support and stabilize wireless customer additions by creating more opportunities for service bundling.
Previously, on January 13, Barclays cut its price target on AT&T Inc. (NYSE:T) from $28 to $26 and maintained its Equal Weight rating. This change came as the firm adjusted price targets in the cable, satellite, and telecom services sector. Barclays believes that 2026 “could establish the longer-term operating road map for convergence, which may also require a different capital allocation template across the industry.”
AT&T Inc. (NYSE:T) is an American multinational telecommunications and technology company that provides wireless and fixed-line communication services, broadband, and mobile services.
1. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the best 5G stocks to invest in according to hedge funds. On January 15, Wells Fargo increased its price target on Broadcom Inc. (NASDAQ:AVGO) from $410 to $430 and upgraded its rating from Equal-Weight to Overweight.
Wells Fargo noted that the recent weakness in the share price has created a better entry point for investors. The firm also pointed to growing confidence in new growth drivers that could support Broadcom Inc. (NASDAQ:AVGO) through 2026. Wells Fargo raised its estimates for the company for calendar years 2026 and 2027 based on stronger expectations for the AI semiconductor revenue.
Earlier, on January 9, Bernstein reaffirmed its Outperform rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $475 after meeting with the company’s leadership. The discussion focused on investor concerns about growing competition in the AI space.
Following the meeting, Bernstein had “more conviction than ever” that the worries about competition are “hugely overblown” and that Broadcom Inc. (NASDAQ:AVGO) is not expected to lose its leadership position in the ASIC (Application-Specific Integrated Circuit) space anytime soon.
Bernstein also pointed to the company’s innovations in areas such as 3D chip stacking, 400G SerDes, investments in substrate manufacturing, and new manufacturing techniques that could eliminate the need for interposers. The firm sees these as advantages that “no competitors or customers can match.”
Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions. The company’s solutions include critical components for 5G infrastructure.
While we acknowledge the potential of AVGO as an investment, 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 AVGO and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
