Corning Secures $6 Billion Deal with Meta, Boosting Optical Fiber Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2024
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Should l Buy GLW?
Source: Investing.com
Corning Inc's stock rose by 4.01% as it reached a 52-week high, driven by strong demand in the optical fiber market.
The company has secured a significant multi-year order worth $6 billion from Meta, which is expected to enhance its enterprise optical communications business. This deal comes amid a booming demand for fiber-optic cables, particularly as AI developers require high-speed data transmission, positioning Corning favorably in a market projected to triple in size. Additionally, Corning's optical communications segment reported a remarkable 35% growth, contributing significantly to its overall revenue increase of 13% year-over-year.
This strategic partnership with Meta not only solidifies Corning's leadership in the fiber market but also indicates potential for further growth as the company explores additional agreements in the pipeline, enhancing its profitability and market share.
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Analyst Views on GLW
Wall Street analysts forecast GLW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GLW is 99.00 USD with a low forecast of 83.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 112.790
Low
83.00
Averages
99.00
High
110.00
Current: 112.790
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 Technologies, Specialty Materials, Environmental Technologies, and Life Sciences. Its Optical Communications segment manufactures carrier network and enterprise network components for the telecommunications industry. Its Display Technologies 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 fluoride crystals for customer needs. Its Environmental Technologies segment manufactures ceramic substrates and filters for emission control systems in mobile applications. Its Life Sciences segment develops, manufactures and supplies laboratory products, including labware, equipment, media, serum and reagents, enabling workflow solutions for drug discovery and bioproduction.
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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- Meta Deal Boosts Growth: Meta has placed a multi-year order worth $6 billion with Corning, which is expected to significantly drive growth in Corning's enterprise optical communications business, especially with the construction of its hyperscale data centers, enhancing revenue and market share.
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- Long-Term Investment Potential: Although Corning's P/E ratio stands at 40.8, higher than the S&P 500 and Nasdaq-100, it remains relatively cheap compared to other AI semiconductor firms like Nvidia and Broadcom, with potential for further agreements similar to the Meta deal in the pipeline.
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