Network Communication Company Rankings and Industry Outlook Analysis — Global Leading Enterprise Investment Guide

As global broadband infrastructure investments continue to expand, the telecommunications industry is experiencing rapid growth. The US government, the European Union, and various countries have committed substantial funds to upgrade high-speed internet infrastructure, creating long-term growth opportunities for listed companies engaged in network communications. This article reviews the rankings of global telecom companies and analyzes the development prospects of leading enterprises in the US and Taiwan markets.

Overview of the Telecom Industry and Ranking Evaluation Criteria

The network communications (abbreviated as “netcom”) industry chain includes hardware equipment and technical services, mainly covering key devices such as routers, switches, and base stations. According to industry data, the global communication equipment market has maintained continuous growth for several years and is expected to further expand in the future.

Company rankings in the telecom industry are typically assessed based on the following indicators:

• Revenue size and growth rate: Reflecting market share and development momentum
• Profitability: Measuring operational efficiency and profit margins
• Market position: Leading technology and market share within specific segments
• Policy benefits: Directly driven by government broadband infrastructure investments

Analysis of Leading US Telecom Companies

In recent years, US telecom equipment stocks have shown differentiated performance, but overall benefit from upgrades driven by 5G, AI, and other technologies. The core leading companies include:

1st Place: Cisco Systems (CSCO)

As a global leader in network equipment, Cisco primarily sells network hardware and software, including switches and routers. The company’s revenue remains stable above $15 billion, with double-digit annual growth rates.

With increasing demand for enterprise AI applications, Cisco has seen a significant rise in AI-related orders. Investors are optimistic about its long-term AI potential, supporting a continuous rise in stock price. Historically, the stock has gained 16%, demonstrating confidence in its strategic direction.

2nd Place: Arista Networks (ANET)

Arista specializes in designing and selling multi-layer switches and related software, being a key player among network equipment providers. Revenue approaches $1.5 billion, with industry-leading profit margins exceeding market expectations.

Its customer base is highly concentrated, with Microsoft and Meta as major clients. Benefiting from the large-scale construction of AI infrastructure, sales continue to grow, and the stock is viewed favorably for further appreciation.

3rd Place: Broadcom (AVGO)

Broadcom dominates the global communication chip market, especially in switching, routing, and Wi-Fi chips, holding over 70% market share in these core segments. The company’s revenue growth is strong, with Q2 and Q3 forecasts surpassing market expectations.

The AI boom has provided a new growth engine for Broadcom, leading to steady stock performance. Its stock has surged over 55% year-to-date, reflecting investor confidence in its prospects.

4th Place: Qualcomm (QCOM)

Qualcomm holds a significant position in mobile communications, designing and manufacturing chips for smartphones, tablets, and mobile devices. Despite recent fluctuations in performance, it maintains leadership in 5G technology.

Notably, Qualcomm’s collaboration with Meta on deploying generative AI applications on mobile devices could become a new catalyst for its stock rebound. The integration of 5G and AI presents new growth opportunities.

5th Place: T-Mobile (TMUS)

As the third-largest telecom operator in the US, T-Mobile’s main business includes communication services and mobile phone sales. The company has gained more new users than competitors, demonstrating strong market appeal. Its stable fundamentals support future stock performance.

Ranking of Taiwanese Listed Telecom Companies

Taiwan, as a major manufacturing hub for the global telecom industry, hosts several leading companies. Since 2023, Taiwan’s communication network index has outperformed the broader market, reflecting industry growth momentum.

1st Place: Zyxel Communications (2345)

Zyxel is a major Taiwanese manufacturer of network switches, with about 70% of revenue from switch products, mainly serving international tech giants. Its performance shows dual growth, with record-high earnings per share in the first half of the year.

As 400G switch shipments continue to rise, market expectations are high for Zyxel’s sustained high growth. Its stock has significantly outperformed the market, indicating investor optimism about its role in AI infrastructure development.

2nd Place: Quanta Computer (6285)

Quanta specializes in satellite communications, covering network communications, automotive/modular solutions, and antennas. Over 60% of its revenue comes from the Americas, directly benefiting from US broadband infrastructure investments.

Financial reports show record-high revenue with over 30% annual growth. Continued demand from European and American telecom operators supports Quanta’s positive growth outlook, with notable stock gains.

3rd Place: Delta Electronics (2308)

Delta is a leading Taiwanese power supply manufacturer, with business spanning power supplies, components, automation, and communication infrastructure. It is a concept stock for both telecom and AI/electric vehicle themes, driven by multiple growth engines.

Revenue and profit are both growing; in Q2, revenue exceeded 100 billion RMB, demonstrating strong operational performance. The management remains optimistic about future earnings, supporting steady stock appreciation.

4th Place: Chunghwa Telecom (2412)

Chunghwa Telecom is Taiwan’s largest telecom provider, offering fixed-line, mobile, and broadband services. Its profits have reached recent highs, and it has paid dividends for 26 consecutive years, making it a stable long-term investment target for retail investors.

Stable cash flow and dividend distribution capacity make it a key focus for income-seeking investors.

5th Place: FarEasTone (4904)

FarEasTone is an important player in Taiwan’s telecom sector, mainly engaged in voice services, wireless communication equipment, and parts sales. Benefiting from 5G user upgrades, its revenue and profits are growing, with 24 consecutive years of dividend payments.

Its stable dividend policy and growth foundation make it an attractive investment within the industry.

Core Investment Logic and Risk Considerations in Telecom Industry

Investment Advantages

1. Strong Policy Support
Governments worldwide prioritize broadband infrastructure as a strategic focus. Large-scale investment plans in the US, EU, and other developed economies provide solid demand foundations for the telecom industry.

2. Stable Operational Performance
Major telecom companies are less affected by economic cycles, with stable cash flows and strong dividend-paying ability, adding certainty to related investments.

3. Multiple Concept Resonance
Some telecom stocks also feature emerging themes like 5G and AI, which can benefit from technological upgrade cycles and generate multiple positive catalysts.

Investment Risks

1. Growth Limitations
In many developed countries, network infrastructure is nearing saturation, and incremental demand growth may slow. The commercialization of 6G and other new technologies also faces uncertainties.

2. Intensified Competition
The telecom equipment market is highly competitive, with many players vying for market share through price competition, which could pressure profit margins.

3. Technology Iteration Risks
Rapid technological upgrades require continuous R&D investment, and rising costs could impact profitability.

Summary

Based on the rankings, US companies like Cisco, Arista, and Broadcom hold prominent market positions; Taiwanese companies such as Zyxel, Quanta, and Delta benefit from broadband infrastructure investments and AI development, with optimistic prospects.

Investors should consider multiple factors—including policy support, industry growth, and competitive landscape—when evaluating telecom stocks. Aligning investment strategies with risk tolerance, emphasizing long-term investment and risk management, remains essential for sound decision-making.