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 TIM SA (NYSE:TIMB) 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).Why TIM SA (TIMB) is Surging in 2025

A technician testing a consumer's home device connected to the telecom service.

TIM SA (NYSE:TIMB)

Number of Hedge Fund Holders In Q4 2024: 16

TIM SA (NYSE:TIMB) is a major telecommunications company in Brazil, providing mobile, fixed, broadband, and data services to individuals and businesses.

The primary catalyst for TIM SA’s stock appreciation in 2025 was the improved financial performance following the sale of its NetCo division last year, which resulted in a significant increase in operating margins and a return to consolidated profit in the second half of 2024. The boost is still ongoing.

The company reported group revenue of €14.5 billion, a 3.1% year-over-year increase, and EBITDA AL of €3.7 billion, up 10.1% year-over-year, despite a full-year net loss that was sharply reduced by 67% to €364 million. The market responded strongly to these results.

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The consensus price target of $16 implies 1.76% downside.

TIMB stock is up 48.19% year-to-date.

Overall, TIMB ranks 11th on our list of communication services stocks that are up the most so far in 2025. While we acknowledge the potential of TIMB, 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 TIMB 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.

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