Verizon Edged Lower as 80 Million Fiber Miles Chase AI Traffic

This article first appeared on GuruFocus. Verizon Communications (NYSE:VZ), the wireless, broadband and fiber-network operator, locked in more than 80 million miles of Corning optical fiber for delivery from 2027 through 2032. Verizon shares traded at $50.075 Tuesday, a bit lower than the prior close implied by the earlier quote. The multibillion-dollar deal feeds two enormous buildouts: Verizon's goal of reaching 40 million to 50 million broadband locations and its long-haul AI Connect corridors. An even six-year split would put annual supply above 13.3 million fiber miles, although Verizon disclosed neither minimum yearly purchases nor detailed financial terms. The message is clear: Verizon does not want scarce fiber slowing its expansion as AI data-center traffic accelerates. Verizon produced $6.4 billion of second-quarter free cash flow on $34.3 billion of revenue, giving it financial room to fund the network push. Yet fiber buried in the ground generates nothing until households, businesses and data centers start paying to use it. The stock chart adds another warning: at $50.075, Verizon trades 15.73% above its $43.27 GF Value, suggesting investors already credit the company for meaningful execution before the new capacity begins producing returns. More News