Lumen Technologies (NYSE: LUMN) has seen a remarkable turnaround, experiencing a 660% increase in share price since early 2022, primarily driven by its pivot toward providing AI data center services. As of 2024, the company has secured nearly $13 billion in contracts related to “private connectivity fabric,” partnering with major players like Microsoft and Anthropic. This shift comes after a challenging period in which Lumen’s stock plummeted to around $1 per share due to declining revenues and unsuccessful strategies in the broadband market.
In addition to securing AI contracts, Lumen has reduced its debt by nearly $5 billion by selling its residential fiber business to AT&T. Despite analysts not expecting positive earnings in the near term, the company’s ongoing efforts to enter new AI connectivity deals, including a recent collaboration with Amazon’s AWS unit, suggest a continued recovery.
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