AT&T $250 Billion Announcement Backs Our Bullish View on 2 Holdings
AT&T solidifies our thinking about AI adoption and usage driving network spending.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
We're Making the Call: AT&T, Wells Fargo in, Dell Out of Bullpen
Several quarters ago we shared our view that continued adoption of internet and streaming across the globe, paired with rising AI adoption and usage would congest networks and lead to incremental spending to add more capacity. We’ve seen several confirmation points, including the rebound in networking demand at Marvell (MRVL) and others, but AT&T (T) is now joining in a big way.
AT&T announced it will spend more than $250 billion over five years in the U.S. to expand its network infrastructure as it ramps investments to support surging data demand.
The reason?
Rapid adoption of artificial intelligence, cloud computing and connected devices has prompted telecom operators to invest heavily in fiber and 5G networks as they also seek to fend off intensifying competition from cable broadband providers.
We see that as more reasons to be remain bullish on shares of Marvell and newly One rated Broadcom (AVGO) .
Related: We're Adding to Two Financial Holdings, While Upgrading One
More Pro Portfolio:
- Exiting One Position and Initiating Another as We Become More Defensive
- 25 Signals Across 9 Investing Themes
- Weekly Roundup: S&P Drops 2%, Portfolio Barely Blinks. Here's Why.
At the time of publication, TheStreet Pro Portfolio was long MRVL and AVGO.
