Lumen Exploded 29% on AI Fiber Boom: Why the Stock Could Reach $11 in 2026 – TIKR.com

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Shares of Lumen Technologies, Inc. (LUMN) exploded 29.4% to close near $8.06 on Friday, driven by a massive Q4 earnings beat that confirmed its transformation into a key AI infrastructure player.
The company reported adjusted EPS of $0.23, crushing Wall Street estimates of a $0.21 loss and proving that its cost-cutting measures are working faster than expected.
Fueling the rally was the announcement of $2.5 billion in new Private Connectivity Fabric (PCF) deals, signaling insatiable demand from hyperscalers like Microsoft (NASDAQ:MSFT) for dedicated AI fiber networks.
Management also confirmed the closing of its $5.75 billion fiber sale to AT&T, a move that allowed them to pay off $4.8 billion in debt and significantly de-risk the balance sheet.
Analysts at Goldman Sachs raised their target, citing “meaningful upside” as the company leverages its unique intercity fiber network to serve power-hungry AI data centers.
The stock has also benefited from its partnership with Palantir (NYSE:PLTR), integrating Lumen’s network into Palantir’s AIP platform to secure government and enterprise contracts.
With short interest remaining high, the sudden profitability and cash infusion have triggered a classic “short squeeze,” forcing bears to cover as the “AI Fiber” narrative takes hold.
See analysts’ growth forecasts and price targets for Lumen Technologies stock (It’s free!) >>>
During the earnings call, CEO Kate Johnson declared that Lumen has successfully pivoted from a telecom relic to the backbone of the AI economy.
She stated: “We are the trusted network for AI… Our physical expansion is about more than just fiber miles; it’s about enabling the fastest time to first token.”
Regarding the massive demand for fiber, management highlighted that AI workloads require a fundamentally different network architecture than the traditional internet.
CFO Chris Stansbury noted: “The $2.5 billion in new deals creates a strategic advantage… We are expanding alongside the most influential companies in the AI race.”
The leadership team believes that as “sovereign AI” clouds and private enterprise models proliferate, the value of their unique conduit network will only increase.
Read the full Lumen Transcript on TIKR to see the AI Strategy >>>
According to the Analyst Estimates, the rally to $8 may just be the beginning of a larger re-rating as the market digests the improved capital structure.
The investment case for Lumen is a high-risk, high-reward bet on the “physical layer” of Artificial Intelligence.
If Lumen can continue to execute its “land and expand” strategy with hyperscalers, the gap to $11 could close rapidly as institutional money returns to the name.
Conclusion: The fiber backbone of the AI revolution. With a 24.1% upside to the street-high target of $10, Lumen Technologies is emerging as a critical infrastructure play for investors seeking direct exposure to the AI data boom.
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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
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