The Bull Case For Lumen Technologies (LUMN) Could Change Following Ambitious AI-Optimized Fiber Network Expansion

• Earlier in September 2025, Lumen Technologies announced substantial progress in its nationwide, multi-billion-dollar effort to expand its intercity fiber network, with over 2.2 million new fiber miles added already this year and a target of 47 million intercity miles by 2028 to support accelerating AI-driven data demand.
• A key differentiator is Lumen's focus on deploying next-generation low-loss fiber and private connectivity fabric designed specifically for AI workloads, providing enhanced speed, scale, and efficiency to enterprise customers and positioning the company as a critical enabler of the AI economy.
• We'll now examine how this ambitious fiber network buildout tailored for AI demand could reshape Lumen's investment narrative.

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Lumen Technologies Investment Narrative Recap

To be a shareholder in Lumen Technologies, you need to believe in the company’s ability to offset steep declines in legacy revenue with large-scale growth from its fiber and AI-driven network solutions for enterprise customers. The recent announcement of accelerated progress in expanding its nationwide fiber backbone targets the key short-term catalyst: winning multiyear contracts with hyperscalers and data centers. This news may help address near-term growth but does not materially change Lumen’s biggest risk, persistent revenue declines from legacy products and ongoing financial losses.

Among recent company developments, the multi-year, multibillion-dollar fiber network expansion disclosed in September 2025 stands out. This initiative reinforces Lumen’s pursuit of recurring, higher-margin revenues from AI-powered enterprise workloads, a top catalyst in the current investment narrative. The achievement of deploying over 2.2 million new fiber miles this year is closely aligned with efforts to scale up and support emerging high-capacity network needs.

Yet, despite these ambitious buildout plans, it’s critical for investors to also understand that rising financial vulnerability from high capital expenditures and refinancing risk…

Read the full narrative on Lumen Technologies (it's free!)

Lumen Technologies' outlook anticipates $11.8 billion in revenue and $1.5 billion in earnings by 2028. This scenario requires a yearly revenue decline of 2.7% and a $2.7 billion increase in earnings from the current level of -$1.2 billion.

Uncover how Lumen Technologies' forecasts yield a $5.06 fair value, a 13% downside to its current price.

Exploring Other Perspectives

Thirteen estimates from the Simply Wall St Community place Lumen’s fair value anywhere from US$0.81 to US$17.09 per share. With ongoing revenue contraction and persistent losses, this wide spread in valuations shows how market participants weigh short-term catalysts against persistent structural risks.

Explore 13 other fair value estimates on Lumen Technologies - why the stock might be worth less than half the current price!

Build Your Own Lumen Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lumen Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Lumen Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lumen Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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