Bernstein Remains Bullish on T-Mobile US (TMUS) Amid Changing Competitive Dynamics Across U.S. Telecom

T-Mobile US, Inc. (NASDAQ:TMUS) is one of the 10 Goldman Sachs undervalued stocks to invest in.

Bernstein Remains Bullish on T-Mobile US (TMUS) Changing Competitive Dynamics Across U.S. Telecom

On January 16, 2026, T-Mobile US, Inc. (NASDAQ:TMUS) saw Bernstein lower its price target from $265 to $245, while reiterating a ‘Market Perform’ rating. The firm’s updated stance reflects a structural shift in the competitive dynamics across the U.S. telecom sector. The firm highlighted the competition in the sector that intensified every quarter in 2025, eroding the telco gains recorded in the first half. While acknowledging margin pressure within the traditional wireless segment, the investment firm highlighted challenges in the cable operators segment as well, reflecting on the broader industry challenges. Looking ahead, Bernstein expects the increasing competition to persist and limited short-term stabilization to occur.

Meanwhile, on January 7, 2026, Scotiabank reduced its price target on T-Mobile US, Inc. (NASDAQ:TMUS) from $278.00 to $270.50, reiterating an ‘Outperform’ rating. While acknowledging the promotional activity that rose during the holiday season, the investment bank emphasized positive industry-wide revenue and EBITDA growth trends. The firm signals resilience in underlying demand despite aggressive pricing.

T-Mobile US, Inc. (NASDAQ:TMUS) focuses on providing wireless voice, messaging, and data services. It serves postpaid, prepaid, and wholesale customers with its nationwide 5G-focused network footprint.

While we acknowledge the potential of TMUS 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 TMUS and that has 100x upside potential, check out our report about this cheapest AI stock.

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