There's Still Time to Invest in These 2 Booming AI Infrastructure Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy LUMN?
Source: Marketbeat
Market Overview: The broader market remains range-bound and choppy, but communication technology companies tied to AI infrastructure are experiencing significant growth, outperforming traditional sectors like consumer staples and energy.
Ciena's Performance: Ciena, a leader in optical networking equipment, has seen its stock rise nearly 28% year-to-date, driven by strong earnings and a surge in demand for AI-related network upgrades.
Lumentum's Growth: Lumentum, a manufacturer of photonics and laser components, has also reported impressive earnings growth, with revenue surging over 65% year-over-year, highlighting the strong demand for cloud and AI technologies.
Investment Insights: Analysts suggest that despite the current market volatility, there are still opportunities for long-term investors, particularly in companies that are well-positioned to benefit from ongoing AI infrastructure spending.
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Analyst Views on LUMN
Wall Street analysts forecast LUMN stock price to rise
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 8.000
Low
7.00
Averages
8.33
High
11.00
Current: 8.000
Low
7.00
Averages
8.33
High
11.00
About LUMN
Lumen Technologies, Inc. is a networking company, which connects people, data, and applications quickly and securely. The Company is engaged in providing an array of integrated products and services to its domestic and global business customers and its domestic mass market customers. It operates through two segments: Business segment and Mass Markets segment. The Company conducts its operations under four brands: Lumen, which is its flagship brand for serving the enterprise and wholesale markets, including its Private Connectivity Fabric (PCF) network architecture, Lumen Digital products, and its priority services including Edge, Network-as-a-Service and cybersecurity; Quantum Fiber, which provides fiber-based broadband services to residential and small business customers; CenturyLink, which is engaged in providing primarily mass-marketed copper-based communications services, and Black Lotus Labs, which is its cyberthreat research and intelligence arm.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
There's Still Time to Invest in These 2 Booming AI Infrastructure Stocks
Market Overview: The broader market remains range-bound and choppy, but communication technology companies tied to AI infrastructure are experiencing significant growth, outperforming traditional sectors like consumer staples and energy.
Ciena's Performance: Ciena, a leader in optical networking equipment, has seen its stock rise nearly 28% year-to-date, driven by strong earnings and a surge in demand for AI-related network upgrades.
Lumentum's Growth: Lumentum, a manufacturer of photonics and laser components, has also reported impressive earnings growth, with revenue surging over 65% year-over-year, highlighting the strong demand for cloud and AI technologies.
Investment Insights: Analysts suggest that despite the current market volatility, there are still opportunities for long-term investors, particularly in companies that are well-positioned to benefit from ongoing AI infrastructure spending.
See More
Lumen CEO Johnson Ignites 30% Surge After Buying $500,000 in Shares
- CEO's Confidence: Lumen Technologies CEO Kathleen Johnson expressed strong confidence in the company's stock.
- Market Reaction: Following her statement, Lumen's shares surged nearly 30%, reversing a significant selloff.
See More
AT&T's Q4 Earnings Call Signals Optimistic Growth Ahead
- Fiber Broadband Investment Returns: AT&T's significant investment in fiber broadband, including a $5.8 billion acquisition of Lumen's fiber business, is expected to expand its coverage to over 40 million customer locations by year-end, a 25% increase from 32 million at the end of 2025, enhancing its competitive position in a saturated market.
- User Growth Potential: The anticipated addition of 8 million users will increase AT&T's broadband customer base from 10.6 million to 13.6 million, representing a 30% growth, providing a new revenue source and growth momentum amid a saturated wireless market.
- Earnings Outlook Improvement: The CFO indicated during the earnings call that adjusted EPS is expected to range between $2.25 and $2.35 in 2026, with a projected double-digit CAGR through 2028, instilling confidence in investors, especially in the current market environment.
- Enhanced Dividend Payment Capacity: With a payout ratio slightly above 50%, the upcoming profit improvements will bolster AT&T's ability to maintain dividend payments and may pave the way for the resumption of annual dividend increases that were suspended in 2022.
See More
AT&T's Fiber Business to Drive EPS Growth
- Fiber Expansion: AT&T plans to increase its fiber service coverage from 32 million to 40 million customer locations by the end of 2026, representing a 25% year-over-year growth that will significantly enhance its market share and competitive position.
- Customer Growth Potential: The addition of 8 million new users is expected to boost AT&T's fiber customer base from 10.6 million to 13.6 million, translating to a 30% increase that could generate nearly $3 billion in annual revenue, alleviating pressures from a saturated wireless market.
- Earnings Outlook Improvement: The CFO projects adjusted EPS to range between $2.25 and $2.35 in 2026, with a double-digit CAGR expected over the next three years, indicating growth potential even in a highly competitive market.
- Dividend Payment Capacity Enhancement: With improving profits, AT&T's dividend payout ratio is slightly above 50%, which may allow for the resumption of annual dividend increases that were suspended in 2022, attracting more income-focused investors.
See More
AT&T's Fiber Business Drives Profit Growth Potential
- Fiber Expansion: AT&T aims to increase its fiber service coverage from 32 million to 40 million customer locations by the end of 2026, representing a 25% year-over-year growth that significantly enhances its competitive position in a saturated market.
- Customer Growth Potential: The addition of 8 million new users is expected to boost broadband customers from 10.6 million to 13.6 million, a 30% increase that will further drive revenue, especially given the saturation in the wireless market.
- Revenue Expectations: With fiber customers averaging $73 per month, this could translate into nearly $3 billion in additional annual revenue, strengthening AT&T's profitability and ability to sustain dividend payments.
- Profitability Outlook: The CFO projects adjusted EPS to be in the range of $2.25 to $2.35 by 2026, with a double-digit CAGR expected over the next three years, indicating growth potential for the company in a highly saturated market.
See More
Lumen Technologies Shares Surge 29.2% After CEO Stock Purchase
- Stock Recovery: Lumen Technologies' shares surged 29.2% on Friday, marking a significant rebound from the sharp decline following Tuesday's earnings report, indicating renewed market confidence in the company's future prospects.
- CEO Stock Purchase: CEO Kate Johnson capitalized on the post-earnings sell-off by purchasing 78,685 shares at an average price of $6.35, totaling approximately $500,000, reflecting her confidence in the company's turnaround strategy.
- Financial Outlook: While the fourth-quarter adjusted earnings per share exceeded expectations, revenue only met them, with management projecting full-year free cash flow between $1.2 billion and $1.4 billion, including $300 million to $450 million in non-recurring tax refunds.
- Debt Management: Lumen successfully reduced its debt burden by selling its consumer-focused fiber-to-the-home business for $4.8 billion, bringing its debt-to-EBITDA ratio down to 3.8 times, although overall revenue and profit growth remains a critical focus.
See More
There's Still Time to Invest in These 2 Booming AI Infrastructure Stocks
Market Overview: The broader market remains range-bound and choppy, but communication technology companies tied to AI infrastructure are experiencing significant growth, outperforming traditional sectors like consumer staples and energy.
Ciena's Performance: Ciena, a leader in optical networking equipment, has seen its stock rise nearly 28% year-to-date, driven by strong earnings and a surge in demand for AI-related network upgrades.
Lumentum's Growth: Lumentum, a manufacturer of photonics and laser components, has also reported impressive earnings growth, with revenue surging over 65% year-over-year, highlighting the strong demand for cloud and AI technologies.
Investment Insights: Analysts suggest that despite the current market volatility, there are still opportunities for long-term investors, particularly in companies that are well-positioned to benefit from ongoing AI infrastructure spending.
See More
Lumen CEO Johnson Ignites 30% Surge After Buying $500,000 in Shares
- CEO's Confidence: Lumen Technologies CEO Kathleen Johnson expressed strong confidence in the company's stock.
- Market Reaction: Following her statement, Lumen's shares surged nearly 30%, reversing a significant selloff.
See More
AT&T's Q4 Earnings Call Signals Optimistic Growth Ahead
- Fiber Broadband Investment Returns: AT&T's significant investment in fiber broadband, including a $5.8 billion acquisition of Lumen's fiber business, is expected to expand its coverage to over 40 million customer locations by year-end, a 25% increase from 32 million at the end of 2025, enhancing its competitive position in a saturated market.
- User Growth Potential: The anticipated addition of 8 million users will increase AT&T's broadband customer base from 10.6 million to 13.6 million, representing a 30% growth, providing a new revenue source and growth momentum amid a saturated wireless market.
- Earnings Outlook Improvement: The CFO indicated during the earnings call that adjusted EPS is expected to range between $2.25 and $2.35 in 2026, with a projected double-digit CAGR through 2028, instilling confidence in investors, especially in the current market environment.
- Enhanced Dividend Payment Capacity: With a payout ratio slightly above 50%, the upcoming profit improvements will bolster AT&T's ability to maintain dividend payments and may pave the way for the resumption of annual dividend increases that were suspended in 2022.
See More
AT&T's Fiber Business to Drive EPS Growth
- Fiber Expansion: AT&T plans to increase its fiber service coverage from 32 million to 40 million customer locations by the end of 2026, representing a 25% year-over-year growth that will significantly enhance its market share and competitive position.
- Customer Growth Potential: The addition of 8 million new users is expected to boost AT&T's fiber customer base from 10.6 million to 13.6 million, translating to a 30% increase that could generate nearly $3 billion in annual revenue, alleviating pressures from a saturated wireless market.
- Earnings Outlook Improvement: The CFO projects adjusted EPS to range between $2.25 and $2.35 in 2026, with a double-digit CAGR expected over the next three years, indicating growth potential even in a highly competitive market.
- Dividend Payment Capacity Enhancement: With improving profits, AT&T's dividend payout ratio is slightly above 50%, which may allow for the resumption of annual dividend increases that were suspended in 2022, attracting more income-focused investors.
See More
AT&T's Fiber Business Drives Profit Growth Potential
- Fiber Expansion: AT&T aims to increase its fiber service coverage from 32 million to 40 million customer locations by the end of 2026, representing a 25% year-over-year growth that significantly enhances its competitive position in a saturated market.
- Customer Growth Potential: The addition of 8 million new users is expected to boost broadband customers from 10.6 million to 13.6 million, a 30% increase that will further drive revenue, especially given the saturation in the wireless market.
- Revenue Expectations: With fiber customers averaging $73 per month, this could translate into nearly $3 billion in additional annual revenue, strengthening AT&T's profitability and ability to sustain dividend payments.
- Profitability Outlook: The CFO projects adjusted EPS to be in the range of $2.25 to $2.35 by 2026, with a double-digit CAGR expected over the next three years, indicating growth potential for the company in a highly saturated market.
See More
Lumen Technologies Shares Surge 29.2% After CEO Stock Purchase
- Stock Recovery: Lumen Technologies' shares surged 29.2% on Friday, marking a significant rebound from the sharp decline following Tuesday's earnings report, indicating renewed market confidence in the company's future prospects.
- CEO Stock Purchase: CEO Kate Johnson capitalized on the post-earnings sell-off by purchasing 78,685 shares at an average price of $6.35, totaling approximately $500,000, reflecting her confidence in the company's turnaround strategy.
- Financial Outlook: While the fourth-quarter adjusted earnings per share exceeded expectations, revenue only met them, with management projecting full-year free cash flow between $1.2 billion and $1.4 billion, including $300 million to $450 million in non-recurring tax refunds.
- Debt Management: Lumen successfully reduced its debt burden by selling its consumer-focused fiber-to-the-home business for $4.8 billion, bringing its debt-to-EBITDA ratio down to 3.8 times, although overall revenue and profit growth remains a critical focus.
See More
