Core Insights - Telecom giants AT&T and Verizon are not traditional leaders in the AI revolution, but their connectivity services are essential for the data-intensive AI ecosystem [1] - Both companies are leveraging their 5G and fiber optic networks to meet the increasing demand for edge computing, resulting in stock price increases of 19% for AT&T and 13% for Verizon year to date [2] AT&T Overview - AT&T has seen a significant stock market recovery, with shares up 58% over the past year, attributed to a focus on core telecom strengths and exiting media ventures [4] - For the year ending December 31, 2024, AT&T's mobility segment revenue increased by 3.3%, with consumer broadband revenue rising by 7.2% due to fiber network expansion [5] - AI integration is contributing to AT&T's success, enhancing automation and capturing demand for middle mile infrastructure [6] - AT&T projects further growth for 2025, with a dividend yield of 4.1% and a potential dividend hike, alongside a new $10 billion share buyback program [7][8] Verizon Overview - Verizon, while experiencing a recent rally, has advantages such as larger total revenue and stronger free cash flow for 2024, making it a potentially better investment [9] - Verizon shares trade at a forward P/E ratio of around 10, offering better value compared to AT&T's 13, along with a higher dividend yield of 5.8% [10] - Verizon has a more defined AI strategy with its Verizon AI Connect solution and partnerships with tech leaders like Alphabet, Meta Platforms, and Nvidia [11][12] Investment Recommendation - Both AT&T and Verizon are positioned to benefit from long-term telecommunications opportunities, but Verizon is viewed as the better investment choice for 2025 due to its current valuation and growth potential [13][14]