Artificial intelligence (AI) is a transformative technology poised to disrupt industries. But companies serving as the "picks and shovels" of the AI gold rush are well-positioned to grow as the market expands.
These organizations provide key services to the AI sector, and thereby are more resilient to the unpredictable changes to come. One such company is Lumen Technologies (LUMN 3.76%). It's pivoting away from consumer fiber-optic networks to focus on essential AI business infrastructure.
Given Lumen's strategic shift, could investing in the stock now help you become a millionaire in the long term? After all, Wall Street approves of its new direction. Lumen shares are up about 60% over the past 12 months through Feb. 18. Let's dig into the company to evaluate this opportunity.
Image source: Getty Images.
Lumen's strategic transformation
Lumen was formerly CenturyLink, but changed its name in 2020 to reinforce its transition away from traditional telecommunications services.
It exited its consumer fiber operations this February, selling the business to focus on what Lumen CEO Kate Johnson described as "powering the digital infrastructure that enterprises and public sector organizations need to win in the AI era."
The company is currently executing a multi-billion-dollar upgrade and expansion of its fiber network to support AI bandwidth needs. Lumen believes businesses will double their cloud spending by 2030 to $1 trillion in the quest to adopt AI. That's the market opportunity it's pursuing.
NYSE: LUMN
Key Data Points
Lumen's frightening financials
However, Lumen's financials are taking a hit as it transitions away from its CenturyLink legacy and builds up an AI-focused business. It ended 2025 with revenue of $12.4 billion, down from $13.1 billion in 2024. Lower sales combined with rising expenses resulted in a net loss of $1.7 billion in 2025, a massive increase from the prior year's $55 million loss.
On top of that, Lumen must invest in building out its fiber network of the future. Hence, its 2025 capital expenditures totaled $4.4 billion, up from 2024's $3.2 billion. This left it with free cash flow (FCF) of $371 million.
Lumen's FCF is important because it's used to pay down debt, and the company has racked up a lot of indebtedness. It exited 2025 with over $17 billion in debt on its balance sheet.
Lumen expects an improving situation in 2026. It forecast FCF of at least $1.2 billion, and adjusted EBITDA of $3.1 billion to $3.3 billion for this year. Its 2025 adjusted EBITDA was $2.6 billion.
Lumen's millionaire potential
Lumen's pivot to an AI network provider is a compelling case for investors. Adding to this is a reasonable valuation, given its 0.65 sales multiple.
But does this valuation and its AI future suggest its stock can help you achieve millionaire status? Although the possibility exists, at this point, the potential looks murky at best.
Lumen's 2026 projections for adjusted EBITDA and FCF are encouraging, but it still needs to strengthen its overall financial health, which includes reducing its excessive debt.
Consequently, investing in Lumen is a high-risk proposition, suitable only for those with a strong risk tolerance. Perhaps it can succeed as an essential "picks and shovels" provider for the AI sector. But don't expect it to make you a millionaire.
