We hear a lot of chatter these days about how telcos need to operate more like technology companies. Indeed, the “telcos to techcos” transition is well underway. However, there is one area where telcos don’t want to emulate tech companies nowadays, and that’s market volatility. And telcos so far have avoided that – at least the big three telcos have.

In his Changing the Channel LinkedIn blog, Omdia principal analyst Devan Adams focuses on how the shares for the Telco Big 3 of AT&T, T-Mobile and Verizon have been far more stable than those of the tech Magnificent 7 – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. While the Mag 7 attract more attention from investors and consumers, they are also far more vulnerable to market conditions such as tariffs, price hikes, trade wars and supply chain interruptions. Between Dec. 2024, and April 12, 2025, Mag 7 stocks have dropped an average of 28.3% from their 52-week highs while the Big 3 have dropped a mere 6.7% on average.

“While the rest of the market fluctuates between boom and bust, telcos’ remain consistent, which must not be taken for granted—not just by investors, but by the channel ecosystem,” Adams wrote. “This is a testament to their predictability and operational stability.”

Big tech creates more headlines – such as Nvidia’s decision to build AI supercomputers in the U.S. – and political impact while telcos sell services such as connectivity, unified communications and SD-WAN that are commoditized but also essential. This means telcos do a better job of wading through the chaos that we’re seeing in today’s markets. And this can significantly impact the channel.

“Channel partners don’t just sell services, they are invested in them,” Adams writes. “Every supplier (IT or telco) they onboard consumes resources: sales, training, quoting, marketing, technical services/support. They’re allocating considerable capital—just like stock investors—expecting long-term returns.” He reminds channel partners that while Mag 7 can bring higher returns, “telcos represent reliable risks and reliable returns, which is vital during these times of uncertainty.”

The uncertainty is likely to continue, considering the frequent changes to U.S. tariffs policy. Despite Nvidia’s decision to invest $500 billion to bring manufacturing to the U.S., tech companies are unlikely to make any long-term decisions until they have more clarity on the ever-shifting U.S. tariff policy.