Why Lumen Stock Is Jumping Today

Lumen (NYSE: LUMN) stock is posting big gains in Wednesday's trading. The company's share price was up 5.5% as of 3 p.m. ET. Earlier in the day, Lumen stock had been up as much as 16%.

Lumen stock is gaining ground today following bullish analyst coverage. The company's share price is also getting a lift from momentum for artificial intelligence (AI) stocks ahead of Nvidia's Q4 report.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Lumen stock surges on new bullish coverage

Citi published new coverage on Lumen before the market opened this morning, upgrading its rating on the stock from neutral to buy. The firm also set a one-year price target of $6.50 per share on the stock, suggesting additional upside of roughly 39% as of this writing.

Citi expects that Lumen will continue to benefit from private-connectivity-fabric sales to support AI infrastructure expansion for cloud hyperscalers, including Microsoft and Meta Platforms. Citi's analysts also see opportunities for Lumen to continue reducing costs and improve performance for consumer-facing service offerings.

Lumen stock is also seeing some bullish support as investors warm back up to Nvidia and other AI plays ahead of the hardware leader's fourth-quarter report later today. Nvidia's Q4 print and forward guidance will likely have a meaningful impact on valuations in the broader AI space.

What's next for Lumen?

Even after today's gains, Lumen's stock is down roughly 12% across 2025's trading. On the other hand, the company's share price is up roughly 448% over the last year.

Lumen's network technologies wins to support AI data centers have helped power explosive gains for the stock, but there's some debate about what the company's outlook in the space looks like. While the stock will likely continue to see high levels of volatility in the near term, it looks like some promising growth catalysts are still on the horizon.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $328,354!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,837!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $527,017!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of February 24, 2025

Citigroup is an advertising partner of Motley Fool Money. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.