Lumen Technologies has announced a remarkable $5 billion in new business, driven by the surging demand for fiber networks essential for artificial intelligence (AI) data processing.

CEO Kate Johnson described these developments as the beginning of a significant opportunity for Lumen, potentially leading to one of the largest expansions of the internet.

Following the announcement, Lumen's stock price surged 54% to $4.01, marking a 164.6% increase year-to-date.

Citi analyst Michael Rollins upgraded Lumen's stock rating from sell to neutral, citing the potential for reducing debt and improving earnings.

The company is actively pursuing an additional $7 billion in sales opportunities as customer demand for fiber infrastructure continues to grow.

Johnson emphasized that the increasing demand for AI is creating a need for greater connectivity between data centers, positioning Lumen's fiber network to support this growth.

In July, Lumen formed a partnership with Microsoft to leverage the Azure cloud computing platform for its digital transformation and AI initiatives.

Lumen has also partnered with Corning to become the preferred partner for next-generation fiber-dense cables, further supporting AI data processing needs.

To address the rising demand, Lumen has launched a new division called Custom Networks to manage its Private Connectivity Fabric solutions.

Kate Johnson noted that the AI economy is transforming business operations, driving the need for robust network infrastructure to handle unprecedented data flows.

To further enhance its AI-ready infrastructure offerings, Lumen plans to more than double its intercity network miles over the next five years.