The shares of Lumen Technologies skyrocketed by 93% on Tuesday after the company announced it had secured $5 billion in new deals tied to artificial intelligence (AI).
Lumen provides AI-ready fiber network solutions and has seen a surging demand for its products. On top of the already secured $5 billion, the company is also having discussions about further deals that could bring it another $7 billion.
“The AI economy is changing business operations, and companies are recognizing they need a powerful network infrastructure to manage the unprecedented data flows today and the demand in the future,” Lumen Technologies CEO Kate Johnson said in a statement.
Johnson added that companies are choosing Lumen due to its “AI-ready infrastructure and expansive network” and believes Lumen is well-positioned to take advantage of the growing AI demand. Lumen previously teamed up with tech giant Microsoft, with the partnership helping Microsoft to expand its network capacity and giving Lumen access to cloud computing platform Azure to drive its “digital transformation.”
Lumen Technologies’ stock surged to $5.00 per share on Tuesday compared to the close price of $2.59 per share on Monday. It continued its growth in the aftermarket hours as well, jumping a further 38% to trade at $6.90 per share.