AI can train and think inside data centers, but without 5G, it cannot leave them. While data centers train models, use inference, and orchestrate automation, the real application of AI is in virtual AI and the Internet of Things (IoT). IoT is a collection of connected devices that, as of mid-2026, are growing at a rapid pace. Estimates of how many devices are currently connected vary but tend to fall in the 20-25 billion range, growing at a compounded growth rate in the mid-teens.
5G is important for AI, edge computing, and IoT because it enables real-time data processing, ultra-low-latency data, high bandwidth, and scalability. Without it, IoT is dead in the water, a dream of what the Internet might one day do.
Verizon: Helps Reduce Latency With Verizon 5G Edge
Verizon NYSE: VZ is a clear winner in the AI revolution, as it provides 5G networks essential for AI applications. The company’s many advantages include the Verizon 5G Edge architecture, which pushes data storage and processing to the edge of the network, closer to the source, reducing latency to mere milliseconds, and IoT Managed Services, which helps businesses deploy and manage IoT networks. Other benefits include chartered networks, which allow Verizon to isolate smaller networks within the ecosystem, tailoring them to specific needs, including private business networks.
The biggest catalyst for VZ stock in 2026 is the change of its CEO. CEO Dan Shulman is focused on customer satisfaction and revenue quality, and his success is already showing. Early 2026 earnings results include unexpected customer wins, reduced churn, and improved profitability, with potential expected to strengthen as the year progresses. Analysts reacted favorably to the news, raising price targets to the lower end of the range and strengthening market support for the stock.
Verizon’s combination of profitability and value makes it successful regardless of its 5G position or its CEO’s change of strategy. The company trades at around 11X, with forecast earnings growth. paid a dividend of 5.8% compared to the previous trading day. Share buybacks are also part of the mix, providing shareholders with increased leverage as the number of shares is reduced each year.
Cloudflare: Reduce Latency, Critical to Agent AI
Cloudflare NYSE: NET it is important in the 5G ecosystem and AI because it acts as a mediator between websites and the people (or agents) they want to access. Handling 20% to 25% of all internet traffic, Cloudflare is well positioned, and the revenue shows. More importantly, its position and long-term strength is reliable, as it is important for AI performance. Its distributed data center network powers a multitude of services across its servers, and enables ultra-low-latency performance for end users.
The main catalyst this year is agent AI. Not only is Cloudflare’s business supported by its agent offerings, but the proliferation of agents around the world boosts Internet traffic. The company is building new platforms to monetize load handling, which often involves continuous spikes in data transfer. The result is accelerating growth, outperforming, and strengthening the stock price. The upside, as indicated by consensus, is limited, but the trends point to an upside range and a 25% upside from May’s support level.
Broadcom: Broader Support for 5G
Broadcom NASDAQ: AVGO is critical to 5G and IoT at all levels, creating the chips and critical software infrastructure needed to make it work. Broadcom’s semiconductor technology ranges from 5G base stations to 5G-enabled devices, with the software technology that supports it all. The acquisition of VMWare is at the heart of Broadcom, turning it into a comprehensive platform for telco users. Its cloud-based platform allows telcos to leverage hardware, streamline operations, and reduce costs.
Broadcom’s biggest advantage is a testament to business strength and vision. The company pays a token dividend, increases it every year, and buys back shares. The rollback is in effect from mid-2026, following a new $10 billion authorization expected to be completed this year.
Broadcom’s catalysts this year are AI and data centers. The datacenter boom is driving acceleration and overperformance, and 2027 is forecast to be another good year. Analysts expect growth that is expected to continue at a high pace, and the rate is rising. Stock price forecasts are also rising, May updates point to new all-time highs, and the market is reacting positively. Q2 price action includes a strong rally and consolidation with signs of a bullish continuation signal. If confirmed, the signal represents more than $120 upside potential and could push this market to $550 by Christmas.
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