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Can Verizon's Fiber Expansion Strategy Benefit From Rising AI Demand?
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Key Takeaways
VZ's Frontier Communications deal boosts fiber reach to 30M U.S. homes and businesses.
Verizon fiber services back AI data centers, cloud computing, 5G networks and private networks.
VZ is investing in low-latency fiber linking data centers to support edge computing and automation.
Verizon Communications Inc. (VZ - Free Report) is expanding its fiber network to meet growing demand for high-speed Internet, cloud services and artificial Intelligence (AI)-driven data traffic. The acquisition of Frontier Communications has significantly increased Verizon's fiber coverage, allowing it to reach more than 30 million homes and businesses across the United States.
Verizon offers a range of fiber-based services, including Fios broadband, fiber-to-the-home Internet, private networks and business connectivity solutions. These services support cloud computing, AI data centers, 5G networks and other AI native applications that require fast and reliable connections. It plans to expand its reach and eventually serve 40-50 million homes and businesses.
The company is investing in high-capacity, low-latency fiber networks that connect data centers and support advanced computing workloads. Its fiber assets play a key role in supporting 5G expansion, improving network performance and enabling technologies such as edge computing and industrial automation.
In addition, Verizon continues to collaborate with major cloud and technology companies to strengthen networking solutions for enterprise customers. As demand for AI, broadband and data-intensive applications continues to rise, the company's growing fiber infrastructure is expected to strengthen its competitive position and support long-term growth.
How Are Competitors Focusing on Fiber?
Verizon faces stiff competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . AT&T is expanding its fiber network to meet growing demand for high-speed Internet and digital services. The company continues to add new fiber locations and increase its fiber customer base across the United States. AT&T's fiber investments are helping support cloud computing, AI-driven applications and the growing need for fast and reliable connectivity.
T-Mobile is strengthening its presence in the fiber broadband market to complement its wireless business. The company announced fiber initiatives and acquisitions aimed at reaching more homes with high-speed Internet services. T-Mobile's growing fiber network is expected to help meet rising demand for reliable broadband connectivity.
VZ’s Price Performance, Valuation & Estimates
Verizon has gained 2.9% over the past year against the industry’s decline of 18.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 8.93, lower than the 10.99 for the industry.
Image Source: Zacks Investment Research
VZ’s earnings estimates for 2026 have increased 1% to $4.96 per share, while the same for 2027 have declined 0.2% to $5.25 over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Verizon's Fiber Expansion Strategy Benefit From Rising AI Demand?
Key Takeaways
Verizon Communications Inc. (VZ - Free Report) is expanding its fiber network to meet growing demand for high-speed Internet, cloud services and artificial Intelligence (AI)-driven data traffic. The acquisition of Frontier Communications has significantly increased Verizon's fiber coverage, allowing it to reach more than 30 million homes and businesses across the United States.
Verizon offers a range of fiber-based services, including Fios broadband, fiber-to-the-home Internet, private networks and business connectivity solutions. These services support cloud computing, AI data centers, 5G networks and other AI native applications that require fast and reliable connections. It plans to expand its reach and eventually serve 40-50 million homes and businesses.
The company is investing in high-capacity, low-latency fiber networks that connect data centers and support advanced computing workloads. Its fiber assets play a key role in supporting 5G expansion, improving network performance and enabling technologies such as edge computing and industrial automation.
In addition, Verizon continues to collaborate with major cloud and technology companies to strengthen networking solutions for enterprise customers. As demand for AI, broadband and data-intensive applications continues to rise, the company's growing fiber infrastructure is expected to strengthen its competitive position and support long-term growth.
How Are Competitors Focusing on Fiber?
Verizon faces stiff competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . AT&T is expanding its fiber network to meet growing demand for high-speed Internet and digital services. The company continues to add new fiber locations and increase its fiber customer base across the United States. AT&T's fiber investments are helping support cloud computing, AI-driven applications and the growing need for fast and reliable connectivity.
T-Mobile is strengthening its presence in the fiber broadband market to complement its wireless business. The company announced fiber initiatives and acquisitions aimed at reaching more homes with high-speed Internet services. T-Mobile's growing fiber network is expected to help meet rising demand for reliable broadband connectivity.
VZ’s Price Performance, Valuation & Estimates
Verizon has gained 2.9% over the past year against the industry’s decline of 18.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 8.93, lower than the 10.99 for the industry.
Image Source: Zacks Investment Research
VZ’s earnings estimates for 2026 have increased 1% to $4.96 per share, while the same for 2027 have declined 0.2% to $5.25 over the past 60 days.
Image Source: Zacks Investment Research
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.