Forget Nvidia: Could This Be the Most Underrated AI Stock to Buy Right Now?

Core Viewpoint - Lumen Technologies is emerging as a compelling investment opportunity in the AI sector, particularly due to its recent partnerships and significant revenue potential, despite its past struggles and current risks [4][11]. Company Overview - Lumen Technologies, formerly known as CenturyLink, has recently seen its stock triple in value over the past month, making it one of the hottest stocks in the market [5]. - The company is not directly involved in AI chip production but is benefiting from AI through partnerships, notably with Microsoft, which plans to utilize Lumen's fiber products to enhance its network capacity [6]. Financial Developments - The Microsoft deal and other secured contracts could generate approximately $5 billion in revenue for Lumen, with potential additional deals that may add another $7 billion [7]. - Lumen's management anticipates an increase of $20 million in cash flow over the next 12 months due to these developments [6]. Market Position and Valuation - Despite recent successes, Lumen's stock is still down 55% over the past three years and is currently trading at 10 times its trailing earnings and 0.5 times its revenue [9]. - The company has faced losses in three of the last four quarters and has struggled with revenue growth, indicating a challenging financial history [9]. Future Prospects - If Lumen can secure more AI-related deals, its valuation is expected to rise significantly, as its share price remains considerably lower than in previous years [10]. - The outlook for Lumen has improved, with the potential for substantial growth if the company continues to capitalize on its AI-ready infrastructure and network capabilities [12].