Amazon Signs Multi-Billion Dollar Deal with Corning for AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: Fool
- Major Partnership Agreement: Amazon's multi-billion dollar, multi-year agreement with Corning to supply optical fiber and connectivity for its U.S. data centers is expected to create 1,000 manufacturing jobs in North Carolina, further solidifying Corning's position in the AI infrastructure sector.
- Significant Sales Growth: Corning's optical communications sales surged 36% year-over-year in Q1 to approximately $1.85 billion, demonstrating strong momentum in the AI build-out, with eight consecutive quarters of year-over-year growth reflecting sustained market demand.
- Strategic Expansion Plans: Corning aims for a $40 billion annualized sales run rate by 2030, doubling its expected $20 billion run rate by 2026, indicating the company's optimistic outlook and commitment to ongoing investments in future markets.
- Valuation Risks: Despite a 30% year-over-year growth in core earnings per share in Q1, Corning's price-to-earnings ratio has reached about 90, prompting investors to carefully consider the risks associated with its high valuation, especially given the volatility in the AI spending cycle.
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Analyst Views on GLW
Wall Street analysts forecast GLW stock price to fall
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 175.400
Low
83.00
Averages
99.00
High
110.00
Current: 175.400
Low
83.00
Averages
99.00
High
110.00
About GLW
Corning Incorporated operates as an innovator in materials science. Its segments include Optical Communications, Display, Specialty Materials, Automotive, and Life Sciences. Its Optical Communications segment manufactures carrier network and enterprise network components for the telecommunications industry. Its Display segment manufactures glass substrates for flat-panel displays, including liquid crystal displays and organic light-emitting diodes. Its Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics and crystals, precision metrology instruments and software for customer needs. Its Automotive segment manufactures ceramic substrates and filter products for emissions control systems in mobile applications as well as technical glass and optic products and solutions for the interior and exterior of vehicles. Its Life Sciences segment develops, manufactures, and supplies laboratory products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Customer Concentration Risk: Corning faces high customer concentration, with three major buyers accounting for 61% of its automotive sales, which poses potential cash flow risks, especially amid fierce competition from global manufacturers like Samsung.
- Investor Choice Between Risk and Reward: Investors must choose between Corning's stability and QuantumScape's high-risk potential, with Corning showcasing its 175-year history and profitability as a testament to its adaptability, while QuantumScape represents speculative opportunities in future battery technology.
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- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
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- Corning's Market Dominance: Corning leads the specialized glass and fiber optics market, achieving nearly $15.6 billion in revenue for FY 2025, a significant increase from $13.1 billion the previous year, reflecting strong demand for high-tech displays and communication networks, thereby reinforcing its critical role in digital communication infrastructure.
- QuantumScape's Technical Challenges: QuantumScape focuses on developing solid-state lithium-metal batteries, and despite its significant technological potential, it generated $0.0 in revenue for FY 2025 with a net loss of approximately $435.1 million, highlighting the substantial financial pressure and technical hurdles it faces during its R&D phase.
- Risk Analysis: Corning faces customer concentration risk, with three major clients accounting for 61% of its automotive sales, while QuantumScape must overcome production scale and technical feasibility issues, competing against established manufacturers like Tesla, which adds market uncertainty.
- Investment Choice Consideration: Corning, with its 175-year history and stable profitability, is suitable for risk-averse investors, while QuantumScape appeals to those willing to take on high risks for potential high returns, requiring investors to make choices based on their risk tolerance.
See More
Investment Choices: Corning vs. QuantumScape
- Corning's Financial Performance: In FY 2025, Corning's revenue reached nearly $15.6 billion, a nearly 20% increase from $13.1 billion the previous year, with a net income of approximately $1.6 billion and a net margin of 10.2%, reflecting strong demand in high-tech displays and communication networks.
- QuantumScape's Technical Challenges: QuantumScape focuses on developing solid-state lithium-metal batteries aimed at replacing standard lithium-ion packs, yet it generated $0.0 in revenue in FY 2025, reporting a net loss of nearly $435.1 million, highlighting significant financial pressures during its R&D phase.
- Customer Concentration Risk: Corning faces high customer concentration, with three major buyers accounting for 61% of its automotive sales, which poses potential cash flow risks, especially amid fierce competition from global manufacturers like Samsung.
- Investor Choice Between Risk and Reward: Investors must choose between Corning's stability and QuantumScape's high-risk potential, with Corning showcasing its 175-year history and profitability as a testament to its adaptability, while QuantumScape represents speculative opportunities in future battery technology.
See More
