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Why Lumen Technologies Is Soaring Today
LUMNLumen(LUMN) The Motley Fool·2025-01-24 19:36

Stock Performance - Shares of Lumen Technologies (LUMN) gained 3 8% as of 1 50 p m ET and were up as much as 5 7% earlier in the day [1] - The stock's rise occurred while the S&P 500 and Nasdaq Composite lost 0 3% and 0 5% respectively [1] Project Stargate Announcement - President Trump announced Project Stargate a 500billionprivateinvestmentinitiativefocusedonbuildingAmericanAIinfrastructure[2]−SoftBankisamajorcontributortotheproject[2]Lumen′sRoleinAIInfrastructure−Lumen′stechnologyfacilitatesrapidcommunicationinAIdatacenters[3]−ThecompanyhasinkedkeydealswithMetaandMicrosoftthisyear[3]−MicrosoftmaybeoneofthefirsttoreceiveProjectStargatefundingduetoitsrelationshipwithOpenAI[3]IndustryOptimism−TheAIsectorisexperiencingageneralsenseofoptimismfollowingtherollbackofBiden−eraregulations[3]Lumen′sFinancialPerformance−Lumen′srevenuehasshrunkfrom500 billion private investment initiative focused on building American AI infrastructure [2] - SoftBank is a major contributor to the project [2] Lumen's Role in AI Infrastructure - Lumen's technology facilitates rapid communication in AI data centers [3] - The company has inked key deals with Meta and Microsoft this year [3] - Microsoft may be one of the first to receive Project Stargate funding due to its relationship with OpenAI [3] Industry Optimism - The AI sector is experiencing a general sense of optimism following the rollback of Biden-era regulations [3] Lumen's Financial Performance - Lumen's revenue has shrunk from 21 5 billion in 2019 to $14 6 billion last year [4] - The company has repeatedly missed earnings targets and failed to consistently turn a profit or grow revenues [4] Future Outlook - Despite the enthusiasm surrounding Project Stargate Lumen's future remains unclear [4]