Shares of broadband and fiber network operator Lumen Technologies (NYSE: LUMN) rocketed 75.2% higher this week, according to data from S&P Global Market Intelligence.

The company reported a surge of new revenue deals related to artificial intelligence (AI) and also reported earnings this week. While Lumen has struggled under a heavy debt load with declining legacy businesses in recent years, the AI revolution appears to be offering Lumen new growth opportunities. Because of its depressed valuation and the surprise AI news, the beaten-down deep value stock soared.

There were some hints over the past few weeks that a breakout was coming for Lumen. On July 24, Lumen announced a deal with (NASDAQ: MSFT) according to which Lumen would use Microsoft's cloud tools to modernize and streamline its own tech stack, which the company said would save $20 million over the next 12 months. In addition, Microsoft named Lumen as a strategic partner for new and existing low-latency fiber routes to connect artificial intelligence data centers, which increasingly require fast inter-data-center connectivity. Lumen then followed that up on Aug. 1, announcing a deal with fiber cable giant Corning (NYSE: GLW), reserving 10% of Corning's fiber capacity for the next two years. That lent confidence to Lumen's next-gen AI network initiative.

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Source Fool.com