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The Biden Administration has announced a billion project to provide broadband internet access to all areas in the US, including remote rural locations. This initiative aims to bridge the digital gap and ensure high-speed connectivity for all Americans. The investment presents opportunities for retail investors, especially in the broadband internet sector.

One stock that is poised to benefit from this federal funding is Charter Communications (CHTR). Charter is a leading connectivity company that provides Wi-Fi, fast internet, and mobile services to millions of customers. The company generated billion in revenue last year and has a vast network spanning 41 states. Charter’s consistent quarterly revenue and its goal of surpassing 2023 broadband additions compared to last year make it an attractive investment. Analysts have given Charter a Buy rating, with a price target implying a potential one-year upside of 37%.

Another stock that stands to benefit is AT&T (T), one of the largest telecom firms globally and the biggest provider of mobile phone services in the US. AT&T has a long history in the telecommunications industry and offers a range of services, including landline telephone, cellular mobile, and internet packages. In its recent earnings report, AT&T reported strong operating income and exceeded non-GAAP EPS estimates. The company is projecting a significant free cash flow for 2023. With a reliable dividend yield of 7.8% and its ability to handle challenges, such as the lead-lined cable controversy, AT&T is considered an undervalued stock with upside potential.

Both Charter Communications and AT&T have a solid position in the broadband industry and are well-positioned to benefit from the Biden Administration’s broadband initiative.

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