We recently published a list of Why These 15 Communication Services Stocks Are up the Most So Far in 2025. In this article, we are going to take a look at where Millicom International Cellular SA (NASDAQ:TIGO) stands against other communication services stocks that are up the most so far in 2025.

The communication services sector has been one of Wall Street’s most dynamic performers so far this year. The sector has a lot of breadth and encompasses everything from traditional telecom giants to digital advertising platforms and streaming entertainment providers, so the sector hardly moves in tandem.

What makes this sector particularly intriguing is how different subsegments are thriving for entirely different reasons. Tech-oriented communication stocks have capitalized on AI, whereas telecom stalwarts have found strength through 5G network expansion, which is finally becoming the dominant communication standard this year.

Understanding these market leaders provides both defensive positioning opportunities and exposure to some of the most innovative companies.

Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Energy Stocks that are Up the Most in 2025 in another article.

Methodology

For this article, I screened the best-performing communication services stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A telecom tower in a city skyline indicating the companys expansive reach.

Millicom International Cellular SA (NASDAQ:TIGO)

Number of Hedge Fund Holders In Q4 2024: 17

Millicom International Cellular SA (NASDAQ:TIGO) is a telecommunications provider offering cable, mobile, broadband, and digital financial services primarily in Latin America under the Tigo brand.

The most significant driver for Millicom’s stock surge in 2025 was the completion of its delisting from Nasdaq Stockholm, which consolidated all trading of its shares on the U.S. Nasdaq. This move simplified the company’s capital structure and led SEB, the custodian bank, to initiate the sale of approximately 5.1 million unconverted Swedish Depositary Receipts, which the market viewed positively.

The stock’s momentum was further fueled by the announcement of an interim dividend of $0.75 per share, payable in April 2025, and by JPMorgan raising its price target from $33 to $41, citing Millicom’s strategic reduction in capital expenditures and improved financial metrics. The company’s robust free cash flow yield, strong EBITDA of $2.4 billion, and a healthy gross profit margin of 75.5% also contributed to investor confidence.

The consensus price target of $35.65 implies 7.64% upside.

TIGO stock is up 41.72% year-to-date.

Overall, TIGO ranks 12th on our list of communication services stocks that are up the most so far in 2025. While we acknowledge the potential of TIGO, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TIGO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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