Do You Believe in the Upside Potential of American Tower Corporation (AMT)?

TCW funds, an investment management company, released its “TCW Global Real Estate Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund (I Share) returned +2.37% in the quarter compared to +4.50% for the S&P Global REIT Index. The overweight allocation in Diversified Real Estate Activities had a favorable impact on the fund’s relative performance in the quarter, while the overweight in Telecom Tower REITs had a negative effect. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TCW Global Real Estate Fund highlighted stocks such as American Tower Corporation (NYSE:AMT). American Tower Corporation (NYSE:AMT) is a leading independent multitenant communications real estate operator. The one-month return of American Tower Corporation (NYSE:AMT) was -0.89%, and its shares lost 3.96% of their value over the last 52 weeks. On December 26, 2025, American Tower Corporation (NYSE:AMT) stock closed at $174.71 per share, with a market capitalization of $82.59 billion.

TCW Global Real Estate Fund stated the following regarding American Tower Corporation (NYSE:AMT) in its third quarter 2025 investor letter:

"Our two worst performing securities were SBA Communications Corp. Class A (SBAC; 4.79%**; Telecom Tower Reits) and American Tower Corporation (NYSE:AMT) (AMT; 6.32%**; Telecom Tower Reits).

AMT is one of the world’s largest providers of telecom towers used by wireless communication companies. Telecom towers are mission critical to the carriers, protected by high barriers to entry given constraints from permitting and the physics of spectrum, and require very little capex to support incremental organic growth. Long term, demand for towers will grow in conjunction with increased mobile data consumption. The global 5G deployment cycle and ensuing spend on AMT’s assets has a decade-long runway ahead of it as mobile data continues to grow at 20%-30% annually on current usage patterns, with an additional upside case offered by the development of next-generation applications (GenAI on mobile devices, AR/VR, I oT, etc.)"

American Tower Corporation (NYSE:AMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 75 hedge fund portfolios held American Tower Corporation (NYSE:AMT) at the end of the third quarter, up from 70 in the previous quarter. While we acknowledge the potential of American Tower Corporation (NYSE:AMT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered American Tower Corporation (NYSE:AMT) and shared the list of best stocks to buy and hold for 2026. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.