Can AT&T's 5G Connectivity in Mitsubishi SUV Drive Future Profits?

AT&T Inc. (T) has partnered with Mitsubishi Motors North America to bring advanced 5G connectivity to the upcoming Mitsubishi Outlander SUV. This integration will provide high-speed, reliable in-car connectivity directly through the vehicle, eliminating the need to rely on a driver’s smartphone.

AT&T’s 5G network will provide ultra-fast data speeds, lower latency, and higher capacity, enabling real-time navigation, quicker and smoother infotainment experiences, and enhanced entertainment options for drivers and passengers. The 5G connectivity also allows the vehicle to receive software updates and security fixes remotely, keeping its systems updated for seamless operations.

Apart from Mitsubishi, selected upcoming Toyota models are also adopting AT&T’s 5G to provide drivers with navigation, remote features, and vehicle updates, while offering passengers fast in-car Wi-Fi. AT&T has also partnered with iM Media Labs to provide a 5G-powered platform for AI-personalized in-car entertainment, designed to work across multiple automakers.

The car technology market, especially for connected and 5G-enabled vehicles, is expanding rapidly. AT&T’s 5G network positions the company to play a key role in this advancement, providing enhanced digital experiences, seamless software updates, and a strong foundation for future innovations in automotive connectivity.

How Are Competitors Performing in the Car Technology Market?

AT&T faces stiff competition from Verizon Communications, Inc. (VZ) and T-Mobile, US, Inc.(TMUS). Verizon is developing V2X technology that uses 5G, LTE, and edge computing to let vehicles communicate with other cars, traffic systems, and pedestrians in real time, improving safety and traffic flow. Verizon has partnered with automakers like Audi to create custom private 5G networks and test environments, using 5G and MEC technologies to promote automotive innovation and advanced connectivity solutions.

T Mobile is enhancing car technology by providing 5G connectivity, flexible network solutions for automakers, and support for future innovations like autonomous driving and real-time vehicle communication. T Mobile’s Magenta Drive for BMW is one of the first 5G-connected car services in the United States, offering unlimited 5G data, in-car Wi Fi, mobile hotspot capabilities, voice calls, and support for multiple devices.

T’s Price Performance, Valuation & Estimates

AT&T has gained 8.1% over the past year against the industry’s decline of 0.9%.

From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.34, below the industry tally of 1.79.

Earnings estimates for 2025 have increased 0.5% to $2.06 over the past 60 days, while the same for 2026 have remained static at $2.25.

AT&T 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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