Corning partners with Nvidia to boost optical connectivity capacity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2026
0mins
Source: Fool
Corning Inc's stock has hit a 5-day low amid a broader market trend, despite the Nasdaq-100 and S&P 500 showing slight gains.
The recent partnership with Nvidia is expected to significantly increase Corning's optical connectivity manufacturing capacity by up to 10 times, addressing the growing demand in the AI sector. This strategic move comes as Corning reported a robust 18% year-over-year revenue growth in Q1 2026, driven by its optical communications segment, which alone contributed $1.8 billion.
This partnership not only enhances Corning's competitive edge in the fiber optics market but also reflects strong investor confidence in the company's ability to meet the surging demand for high-speed data transmission in AI applications.
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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: 182.970
Low
83.00
Averages
99.00
High
110.00
Current: 182.970
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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- Silicon Photonics Expansion: CEO Jensen Huang announced at the GTC conference that NVIDIA is scaling its silicon photonics capacity, indicating that significantly higher technological capabilities will be required to meet market demands, which will greatly enhance the computational power and response speed of its products.
- Manufacturing Challenges: Analysts from 650 Group highlight that the rapid growth of photonics technology will face challenges in supply chain and manufacturing capabilities, especially with surging demand, potentially requiring one to two product generations to adapt to the new technology.
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See More
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- Investment Dynamics: Nvidia has invested $2 billion in companies like Lumentum, Coherent, and Marvell developing photonics technology, with plans to invest an additional $500 million in Corning, demonstrating strong financial backing and market confidence in the photonics sector.
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- Market Response: As the AI and semiconductor industries rapidly evolve, Micron's market capitalization has surpassed $1 trillion for the first time, with its stock price surging nearly 200% over the past year, reflecting strong market demand and investment enthusiasm for AI-related technologies.
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- Specific Investments: Since March, Nvidia has announced $2 billion investments into Lumentum, Coherent, and Marvell, along with a $500 million investment in Corning for advanced optical connectivity solutions, further solidifying its leadership in the photonics sector.
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- Technological Advantage: Photonics is viewed as a more efficient data transmission method than traditional electrical processes, and Nvidia's investments will enhance its AI infrastructure scalability while reducing energy costs, thereby improving overall operational efficiency.
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See More
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- Investment Decision Pitfall: Cramer points out that many investors mistakenly assume a stock has become 'too expensive' after significant gains, which can lead to missed opportunities, stressing that if one believes a stock will rise further, historical prices should not deter buying decisions.
- Corning Stock Example: Cramer highlights Corning's CEO Wendell Weeks' argument for fiber optics replacing copper in data centers, noting that despite the stock rising from about $52 in July to $77, he decided to buy on October 21, leading to a doubling of the stock price, reflecting strong market demand.
- Arm Holdings Investment: Cramer also mentions Arm Holdings, whose shares soared after unveiling its in-house designed CPU; he bought in at around $173 on April 20, after the stock had already risen, which later surpassed $300, underscoring the importance of focusing on future potential.
See More
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- Investment Strategy Shift: CNBC's Jim Cramer advises investors to stop fixating on past stock rallies and instead focus on future upside potential, a crucial perspective in the current market, especially as AI and data center stocks continue to rise.
- Corning's Growth Potential: Cramer highlights Corning's potential for fiber optics to replace copper in data centers, noting that despite its stock price rising from about $52 in July to $77, the CEO's confidence and market demand could drive further growth.
- Arm Holdings' Strategic Shift: Cramer points out that after Arm Holdings unveiled its in-house designed CPU on March 24, its stock price surged from $135 to $173, later exceeding $300, indicating strong growth potential in the AI sector.
- Investor Mindset Adjustment: Cramer emphasizes that investors should not miss opportunities simply because a stock has already risen significantly; instead, they should focus on the long-term growth narrative of the business to seize more market opportunities.
See More
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- Photonics Investment: Since March, NVIDIA has invested $2 billion in companies like Lumentum, Coherent, and Marvell to advance photonics technology, aiming to enhance AI infrastructure performance and efficiency, thereby maintaining a competitive edge in a rapidly evolving market.
- Silicon Photonics Expansion: CEO Jensen Huang announced at the GTC conference that NVIDIA is scaling its silicon photonics capacity, indicating that significantly higher technological capabilities will be required to meet market demands, which will greatly enhance the computational power and response speed of its products.
- Manufacturing Challenges: Analysts from 650 Group highlight that the rapid growth of photonics technology will face challenges in supply chain and manufacturing capabilities, especially with surging demand, potentially requiring one to two product generations to adapt to the new technology.
- AI System Adaptation: Analyst Gil Luria noted that existing AI systems will need significant redesign to incorporate optical components, a process that may extend product update cycles, but successful implementation will significantly improve the performance and efficiency of AI models.
See More
AI Companies Increase Investment in Photonics Technology
- Photonics Technology Adoption: AI companies are increasingly leveraging photonics technology to enhance data transfer efficiency between AI chips and systems by using light instead of electricity, thereby reducing energy consumption and improving speed to address the current bottlenecks of copper wire transmission.
- Investment Dynamics: Nvidia has invested $2 billion in companies like Lumentum, Coherent, and Marvell developing photonics technology, with plans to invest an additional $500 million in Corning, demonstrating strong financial backing and market confidence in the photonics sector.
- Technical Challenges: Despite the promising outlook for photonics, challenges in scaling up manufacturing and redesigning existing product roadmaps to replace copper wires with optical fibers may require Nvidia and others to launch one or two more generations of products to achieve widespread adoption.
- Market Response: As the AI and semiconductor industries rapidly evolve, Micron's market capitalization has surpassed $1 trillion for the first time, with its stock price surging nearly 200% over the past year, reflecting strong market demand and investment enthusiasm for AI-related technologies.
See More
Nvidia Invests in Photonics Technology to Propel AI Development
- Massive Investment: Nvidia has committed at least $6.5 billion to photonics technology companies over the past three months, aiming to address a major bottleneck in AI deployment, highlighting its strategic positioning in emerging technologies.
- Specific Investments: Since March, Nvidia has announced $2 billion investments into Lumentum, Coherent, and Marvell, along with a $500 million investment in Corning for advanced optical connectivity solutions, further solidifying its leadership in the photonics sector.
- Technological Advantage: Photonics technology, which uses light for data transmission, significantly reduces energy consumption, and Nvidia's investments ensure ongoing advancements in photonics, preventing scalability and performance walls associated with electrical and copper connections.
- Market Outlook: As photonics technology becomes increasingly integrated into AI infrastructure, large-scale adoption is expected by 2028, with Nvidia's investments providing the necessary optical connectivity capabilities for its future AI solutions, enhancing its competitive edge in the market.
See More
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- Massive Investment: Since March, Nvidia has committed at least $6.5 billion to photonics technology development, aiming to address major bottlenecks in AI deployment, showcasing its strategic positioning in emerging technologies.
- Technological Advantage: Photonics is viewed as a more efficient data transmission method than traditional electrical processes, and Nvidia's investments will enhance its AI infrastructure scalability while reducing energy costs, thereby improving overall operational efficiency.
- Market Response: Partner companies in photonics like Lumentum and Coherent have seen stock prices rise by 134% and 96% respectively since the beginning of the year, reflecting strong market confidence in the future potential of photonics technology.
- Future Outlook: Despite challenges in scaling production of photonics technology, industry experts anticipate large-scale adoption by 2028, and Nvidia's forward-looking investments will solidify its long-term competitiveness in the AI sector.
See More
Investors Should Focus on Future Stock Potential
- Market Insight: CNBC's Jim Cramer emphasizes that investors should not fixate on a stock's past performance but rather focus on its future upside potential, a crucial perspective in the current market, especially as AI and data center stocks continue to rally.
- Investment Decision Pitfall: Cramer points out that many investors mistakenly assume a stock has become 'too expensive' after significant gains, which can lead to missed opportunities, stressing that if one believes a stock will rise further, historical prices should not deter buying decisions.
- Corning Stock Example: Cramer highlights Corning's CEO Wendell Weeks' argument for fiber optics replacing copper in data centers, noting that despite the stock rising from about $52 in July to $77, he decided to buy on October 21, leading to a doubling of the stock price, reflecting strong market demand.
- Arm Holdings Investment: Cramer also mentions Arm Holdings, whose shares soared after unveiling its in-house designed CPU; he bought in at around $173 on April 20, after the stock had already risen, which later surpassed $300, underscoring the importance of focusing on future potential.
See More
Investors Should Focus on Future Stock Potential
- Investment Strategy Shift: CNBC's Jim Cramer advises investors to stop fixating on past stock rallies and instead focus on future upside potential, a crucial perspective in the current market, especially as AI and data center stocks continue to rise.
- Corning's Growth Potential: Cramer highlights Corning's potential for fiber optics to replace copper in data centers, noting that despite its stock price rising from about $52 in July to $77, the CEO's confidence and market demand could drive further growth.
- Arm Holdings' Strategic Shift: Cramer points out that after Arm Holdings unveiled its in-house designed CPU on March 24, its stock price surged from $135 to $173, later exceeding $300, indicating strong growth potential in the AI sector.
- Investor Mindset Adjustment: Cramer emphasizes that investors should not miss opportunities simply because a stock has already risen significantly; instead, they should focus on the long-term growth narrative of the business to seize more market opportunities.
See More
