AT&T Inc. (T): A Bull Case Theory 

We came across a bullish thesis on AT&T Inc. on Pacific Northwest Edge’s Substack by David. In this article, we will summarize the bulls’ thesis on T. AT&T Inc.’s share was trading at $25.13 as of January 29th. T’s trailing and forward P/E were 8.27 and 11.38 respectively according to Yahoo Finance.

AT&T Inc. provides telecommunications and technology services worldwide. T is emerging as one of the most compelling infrastructure investments in U.S. telecommunications as the industry hits a breaking point in wireless capacity. The rapid rise of fixed wireless access has created a temporary boost for T-Mobile and Verizon, but the physics of limited spectrum, mid-band scarcity, and rising traffic loads make this model unsustainable.

Wireless networks cannot economically absorb the exponential data growth ahead, and T-Mobile’s rural focus and lack of fiber only deepen its structural disadvantages. AT&T, by contrast, stands at the center of the coming shift: it owns extensive fiber infrastructure, holds the strongest deep-spectrum position for long-term capacity, and benefits from an industry pivot back toward fiber as the only scalable broadband solution.

Cable operators like Comcast and Charter are losing momentum as upgraded DOCSIS systems meet diminishing returns and customer churn accelerates. Meanwhile, AT&T is executing a methodical strategy built on expanding its fiber footprint, converting fixed wireless users into high-value fiber customers, and leveraging its nationwide spectrum holdings to maintain wireless leadership without overreliance on constrained mid-band layers. The company’s post-DirecTV reset, disciplined capital allocation, and improving free cash flow have transformed its financial profile just as industry dynamics are turning in its favor.

As competitors face mounting capacity challenges and slowing growth, AT&T’s combination of fiber scale, spectrum depth, and operational focus positions it for a significant rerating. With a stabilized balance sheet, strengthening earnings power, and superior long-term network economics, AT&T offers a rare opportunity: durable infrastructure exposure with clear catalysts for substantial upside as the market begins to recognize the inevitability of a fiber-first future.

Previously we covered a bullish thesis on AT&T Inc. (T) by Stock Analysis Compilation in November 2024, highlighting its telecom refocus, debt reduction, and expanding 5G and fiber investments. The stock has appreciated about 7.99% since then as execution improved. The thesis still stands. David shares a similar view but stresses network capacity gains and fiber-driven competitive strength.

AT&T Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge fund portfolios held T at the end of the third quarter which was 83 in the previous quarter. While we acknowledge the risk and potential of T 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 T and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.