15 AI News Investors Should Not Miss

12. Lumen Technologies, Inc. (NYSE:LUMN)

Number of Hedge Fund Holders: 18

Lumen Technologies, Inc. (NYSE:LUMN) is a global communications services provider that offers various integrated products and services to business and residential customers. The telecom company has been benefitting from soaring AI demand and the need for greater connectivity between data centers, with it being in a strategic position to help drive the AI growth wave.

On October 21, Lumen Technologies, Inc. (NYSE:LUMN) announced that it will be partnering with Meta Platforms Inc. to increase the latter’s network capacity and help drive its “bold AI missions”. The partnership will offer it enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and allowing it to serve billions daily. Meta will be able to improve the size and dependability of its AI system through Lumen’s Private Connectivity Fabric providing dedicated connections.

“We’re enabling one of the biggest expansions of network capacity in our lifetime. We’ve transformed our company to meet this demand. As Meta’s customers use more AI services across its platforms, we’re helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs.”

– Ashley Haynes-Gaspar, Lumen’s EVP and chief revenue officer.

Following the partnership news, Raymond James analyst Frank Louthan stated that the partnership is unlikely to move Lumen’s stock. He maintains a “Market Perform” rating on Lumen. He also emphasized that this action appears to be part of the previously announced $5 billion conduit network transaction from August.

“We do not believe this announcement warrants any near-term moves in the shares as it is likely already reflected in the outlook”.

-Analyst Frank Louthan.