Home / Business and Economy / Lumen Stock Plunges 24% Amid AI Valuation Fears
Lumen Stock Plunges 24% Amid AI Valuation Fears
16 Nov
Summary
- Lumen stock fell 24% last week as AI stocks saw a major pullback
- Despite the drop, Lumen's share price is still up 50.5% this year
- Investors sold Lumen stock to lock in gains amid AI valuation concerns
In the week leading up to November 16, 2025, Lumen (NYSE: LUMN) stock saw a significant 24% decline in its share price. This sharp pullback occurred against the backdrop of a broader sell-off in the artificial intelligence (AI) sector, with the S&P 500 managing a modest 0.1% gain and the Nasdaq Composite declining by 0.5% over the same period.
Investors appear to have taken profit on Lumen stock amid growing concerns that AI-related valuations had become overheated. Following an impressive 50.5% rally in Lumen's share price so far this year, some investors opted to exit their positions and lock in their gains as the market faced an uncertain juncture.
In addition to the AI-specific valuation worries, Lumen's stock also sold off due to broader macroeconomic and geopolitical risk factors. Investors have become less confident that the Federal Reserve will cut interest rates in the near future, and concerns about a potential Chinese invasion of Taiwan have resurfaced.
Despite the recent volatility, Lumen has been making strides with its private-connectivity-fabric (PCF) technologies, securing major customers and partners such as Microsoft and Meta Platforms. The company is poised to see substantial sales growth in 2026, but its valuation could continue to be highly volatile in the short term as investors grapple with how to properly value AI-related stocks.
