Aug 6 (Reuters) - Telecommunications firm Lumen

Technologies ( LUMN ) raised estimates for annual free cash flow

on Tuesday, betting on AI-driven demand to drive growth across

its connectivity solutions.

Lumen has been seeing a growing need for its high-capacity

fiber, which enables secure digital connections for data centers

supporting AI ventures.

The company revised its annual free cash flow forecast

upward to between $1 billion and $1.2 billion, a significant

increase from the previous estimate of $100 million to $300

million.

On Monday, the company said it had signed deals worth $5

billion with cloud and tech customers including Microsoft ( MSFT )

and is currently in talks with clients to secure

additional contracts worth $7 billion.

Lumen's stock, which had declined about 65% in 2023, has

rebounded and is now up 41% this year following a deal signed in

January with a group of lenders that extended its debt

maturities to at least 2029.

The Monroe, Louisiana-based company reported revenue of

$3.27 billion in the second quarter, compared to estimates of

$3.25 billion, according to LSEG data.

Excluding items, it posted a loss of 13 cents per share,

compared to a profit of 10 cents per share in the same period

last year, as interest expenses jumped 27% to $373 million in

the second quarter.