Following the announcement of multi-billion dollar business acquisitions, shares of Lumen Technologies, Inc. (NYSE: LUMN) have experienced a notable rise during today’s pre-market session. As per the latest data, LUMN stock has surged by 48.60%, reaching $3.85 on the US stock charts.
Major New Contracts and Future Prospects
Lumen Technologies (LUMN) has secured a substantial $5 billion in new business, driven by the escalating demand for connectivity spurred by advancements in artificial intelligence (AI). Companies across various sectors are rapidly seeking to acquire fiber capacity, as the resource becomes increasingly critical and potentially constrained due to the surge in AI-related needs.
Furthermore, Lumen is actively engaging with clients to secure an additional $7 billion in sales opportunities to cater to the heightened demand. To address this substantial demand, including the recent announcement from Microsoft, Lumen plans to more than double its intercity network mileage over the next five years and provide extensive access to installed dark fiber.
The company has also entered into an agreement with Corning to serve as its preferred partner for next-generation fiber-dense cables, designed to accommodate the increased data processing requirements of AI.
Strategic Expansion and New Initiatives
The burgeoning AI economy is transforming business operations, compelling companies to invest in robust network infrastructure to handle unprecedented data volumes and future demands. Lumen’s partners are increasingly turning to the company for its AI-ready infrastructure and comprehensive network solutions.
This positions Lumen for one of the most significant expansions of internet infrastructure to date. In response to this growing need, Lumen has established a new Custom Networks division. This division will oversee its portfolio of Private Connectivity Fabric solutions and cater to the heightened interest from hyperscalers and large enterprises.
The division will offer tailored network solutions, including dark fiber, custom fiber routes, and digital services, designed to securely connect data centers and support AI-intensive workloads. Additionally, Lumen may operate and maintain these networks as part of its service offerings.
