Why fiber company Lumen’s stock is extending its surge with an 80% pop

Lumen’s recent business wins around AI suggest ‘a greater amount of fiber-related demand should still be on the horizon,’ analyst says

Published: Aug. 6, 2024 at 12:36 p.m. ET

Lumen Technologies Inc. shares are on track to nearly double in Tuesday’s session after the company said its networking infrastructure will lead to billions of dollars in new business centered around artificial intelligence.

The fiber and telecommunications company landed $5 billion in new business related to AI connectivity, Lumen announced Monday, and it’s in “active discussions with customers to secure another $7 billion in sales opportunities to meet the increased customer demand,” according to a release.