Will Kodiak Collaboration Strengthen Verizon's Growth Prospects?

Verizon Communications Inc. (VZ) and Kodiak AI, Inc. (KDK) are working together to modernize the trucking industry by combining autonomous driving technology with advanced IoT and 5G connectivity. This partnership will facilitate Kodiak’s AI systems to incorporate Verizon’s advanced and improved 5G connectivity and IoT telematics for real-time communication, remote monitoring, software updates, and centralized fleet management.

Kodiak AI builds an AI-powered “virtual driver” that uses sensors and software to let long-haul trucks drive safely and efficiently. The technology enables remote human assistance to the vehicle in certain low-speed and well-defined situations. However, consistent connectivity is critical to ensure optimum functionality of this procedure. Verizon Business, with its robust 5G network, aims to address these requirements.

Through this collaboration, Verizon will provide ultra-reliable, low-latency 5G and LTE connectivity to support real-time communication and over-the-air software updates for autonomous trucks. This connectivity enables Kodiak’s assisted autonomy, allowing remote operators to review live data and guide vehicles when needed for safer operations. Verizon’s ThingSpace platform offers centralized fleet management, helping Kodiak to monitor connectivity, control costs, and scale efficiently.

Verizon Business’ IoT and connectivity combine with Kodiak AI’s autonomous technology to create a smarter and more connected trucking system that makes freight transportation more efficient and reliable. As AI and connectivity are shaping the future of transportation, where reliable IoT, 5G, and data services are essential for autonomous vehicles, it provides an opportunity for companies like Verizon to grow further.

Per a report from Grand View Research, the global autonomous truck market was valued at $41.42 billion in 2024. The market is expected to witness a 14.6% compound annual growth rate from 2025 to 2033. This presents a solid growth opportunity for Verizon’s 5G telematics and ThingSpace IoT management solutions. The company operates in a highly competitive and saturated U.S. wireless market. Amid this, Verizon’s focus on expanding into other high-growth markets is a positive factor.

How Are Competitors Faring?

Verizon faces stiff competition from AT&T, Inc. (T) and T-Mobile, US, Inc. (TMUS). AT&T is actively using AI internally with tools like Ask AT&T to boost efficiency and productivity for employees. AT&T, Aira Technologies, and Ericsson worked together to deploy a GenAI rApp on Ericsson’s platform in its test network, showcasing AI-driven innovation and automation for 4G and 5G. AT&T partners with Sovato to enhance healthcare access by integrating digital health tools with robust connectivity, enabling care to be delivered more easily and efficiently.

T Mobile is a leading provider of 5G, covering 330 million people in the country. T Mobile has teamed up with NVIDIA, Nokia, and Ericsson to create AI-powered networks that improve performance, efficiency, and prepare for 6G by using AI throughout the system. T Mobile recently announced a three-year extension with the Las Vegas Grand Prix to use its 5G network for better broadcasts and fan experiences.

VZ’s Price Performance, Valuation and Estimates

Verizon has gained 0.3% over the past year against the industry’s decline of 4.6%.

Going by the price/earnings ratio, the company’s shares currently trade at 8.28, lower than the 11.61 for the industry.

Earnings estimates for 2025 have declined .2% to $4.68, while the same for 2026 has dropped 2% to $4.82 over the past 60 days.

Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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