Lumen Technologies Announces Major Network Expansion, Shares Surge 12%

Lumen Technologies (LUMN) stock surged 12% after announcing plans to expand its network infrastructure by adding 34 million new intercity fiber miles by 2028, more than doubling its current size. This move positions the company to capture growth from AI workloads, sparking investor optimism. Despite declining revenue estimates, the stock has risen 14.2% this year but is still 36.7% below its 52-week high.

Lumen Technologies (LUMN) stock surged 12% following the announcement of plans to expand its network infrastructure by adding 34 million new intercity fiber miles by 2028. This expansion, which aims to more than double the company's current network size, positions Lumen to capture growth from AI workloads, sparking investor optimism Lumen Accelerates Multi-Billion-Dollar Network Expansion to Meet Soaring AI Demand^[1].

The company, which is known for its robust network infrastructure, has already made significant progress in 2025. It has deployed over 2.2 million new intercity fiber miles, with plans to reach 16.6 million by year end Lumen Accelerates Multi-Billion-Dollar Network Expansion to Meet Soaring AI Demand^[1]. This expansion is part of a broader strategy to meet the surging demand for AI workloads. Lumen is utilizing next-generation fiber optic cable from Corning Incorporated to fit twice the fiber into existing conduit, enhancing its network capacity and speed Lumen Accelerates Multi-Billion-Dollar Network Expansion to Meet Soaring AI Demand^[1].

Lumen's stock has risen 14.2% this year, despite declining revenue estimates. The company's current ratio of 2.13 indicates that its liquid assets are sufficient to support this ambitious expansion plan Lumen expands network infrastructure to meet growing AI demand^[3]. The stock, however, is still 36.7% below its 52-week high, suggesting that investors are cautious about the long-term prospects.

Analysts have provided mixed price forecasts for Lumen. The average one-year price target is $5.17, with a potential downside of 15.83% from the current trading price of $6.14. The most optimistic projection is $8.33, while the more conservative estimate stands at $3.00. The consensus recommendation from 14 firms is a "Hold" status Lumen Technologies (LUMN) Plans Major Fiber Network Expansion^[2].

GuruFocus estimates provide additional perspective, with the projected GF Value for Lumen Technologies Inc (LUMN, Financial) at $2.82 for the next year. This estimation implies a significant downside of 54.07% relative to the current share price of $6.14 Lumen Technologies (LUMN) Plans Major Fiber Network Expansion^[2].

Despite the challenges, Lumen's focus on meeting the growing demand for AI workloads positions it as a key player in the AI economy. The company's strategic expansion plan, coupled with its strong operational metrics, suggests that it is well-positioned to capitalize on the growth opportunities in this sector.