New York, February 4, 2026, 15:26 EST — Regular session
AT&T shares climbed on Wednesday following the announcement of a deeper partnership with Amazon Web Services. The telecom giant plans to move parts of its network workloads to the cloud and expand broadband coverage via Amazon’s low-Earth-orbit satellites. 1
Why it matters now: U.S. carriers are pouring money into fiber expansion and linking their networks more tightly with major cloud providers, aiming to capture enterprise demand and data-center growth driven by AI. This sector has fared better than some tech segments recently, as investors steer clear of high-growth stocks over valuation concerns. 2
AT&T gained roughly 1.5%, hitting $27.22 in afternoon trades, after earlier peaking at $27.49.
The company plans to shift some workloads from on-premises systems to AWS Outposts — Amazon’s managed hardware that delivers AWS cloud services directly onsite — while linking AWS data centers via high-capacity fiber. It also intends to collaborate with Amazon Leo, Amazon’s low-Earth-orbit satellite network, to provide fixed broadband for business clients in areas with limited terrestrial coverage. 3
“This collaboration with AWS” builds on fiber as “the foundation” for next-generation networks, AT&T Business product head Shawn Hakl said. AWS’s telecoms vice president Jan Hofmeyr added the companies are combining AT&T’s fiber with AWS cloud and AI tools. 3
The announcement comes just days after AT&T wrapped up its $5.75 billion all-cash acquisition of the bulk of Lumen’s mass-market fiber business. The deal added over 1 million fiber subscribers and more than 4 million fiber locations to AT&T’s network, the company said. CEO John Stankey noted the acquisition would expand AT&T’s fiber reach to “millions more people.” 4
Investors are banking on the idea that bundling more fiber households with wireless service will reduce churn and boost returns. AT&T stuck to the guidance it shared alongside its fourth-quarter results back in late January. 5
But Wall Street will be looking for specifics on the costs and schedules. AT&T and AWS said they will provide more information at Mobile World Congress 2026, set for early March. 3
Senator Maria Cantwell raised concerns Tuesday about AT&T and Verizon withholding network-security assessments linked to “Salt Typhoon,” an alleged Chinese espionage campaign. She pushed Congress to subpoena the CEOs of both companies to testify. 6
Scrutiny like that often leads to higher costs — think audits, remediation, stricter regulations — even if customers don’t shift their habits immediately. The success of the cloud-and-satellite strategy hinges on seamless integration and Amazon hitting its service scaling targets on time.
The focus now shifts to whether AT&T can sustain its gains amid a volatile market. Attention will soon turn to what AT&T and AWS reveal — or withhold — at Mobile World Congress this March. 2
