Corning's Optical Fiber Business Thrives Amid AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy GLW?
Source: Fool
- Fiber Market Opportunity: Corning's fiber-optic cables are favored for their efficiency in data centers compared to copper, with the market expected to triple in size, particularly as AI developers demand high-speed data transmission, solidifying Corning's leadership in this sector.
- 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.
- Strong Financial Performance: Corning achieved core revenue of $16.4 billion in 2025, a 13% increase year-over-year, with its optical communications segment contributing $6.2 billion and growing at 35%, reflecting the company's robust performance and improved profitability in the fiber market.
- 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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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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Corning's Optical Fiber Business Thrives Amid AI Demand
- Fiber Market Opportunity: Corning's fiber-optic cables are favored for their efficiency in data centers compared to copper, with the market expected to triple in size, particularly as AI developers demand high-speed data transmission, solidifying Corning's leadership in this sector.
- 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.
- Strong Financial Performance: Corning achieved core revenue of $16.4 billion in 2025, a 13% increase year-over-year, with its optical communications segment contributing $6.2 billion and growing at 35%, reflecting the company's robust performance and improved profitability in the fiber market.
- 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.
See More
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- Investor Sentiment Shift: Following earnings calls from tech giants like Microsoft, Google, and Amazon, investor confusion about future directions led to Amazon losing over $300 billion in market cap, reflecting strong skepticism regarding its $200 billion AI investment plan.
- Capital Expenditure Comparison: Google announced an increase in capital expenditures to $175 billion to $185 billion, exceeding the expected $115 billion to $120 billion, indicating a proactive approach in AI despite challenges from slowing ad revenues.
- Changing Competitive Landscape: With Alphabet's ongoing investments and successes in AI, YouTube's user base has grown to 750 million, and Waymo's self-driving business is outpacing Tesla, suggesting a strengthening competitive advantage that may attract more investor interest.
- Mixed Market Reactions: Despite OpenAI and Anthropic's strong performance in AI, Microsoft's Copilot sales have been disappointing, highlighting investor concerns about its future growth and reflecting differing levels of confidence across companies.
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- Market Rebound: After a tough week, tech stocks rebounded on Friday, although Amazon pulled back post-earnings, with the S&P 500 and Nasdaq still lower for the week, indicating ongoing volatility and investor focus on the tech sector.
- Surge in Capital Expenditures: Meta's capital expenditures reached $72.22 billion for the full year 2025, with plans to invest up to $135 billion in 2026, reflecting strong demand for AI infrastructure that is expected to boost earnings and backlogs for various companies.
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See More
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- Record High Potential: Shares of the glassmaker are on pace to reach a record high.
See More
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- Record High Achievement: Corning's stock reached a new record high on Friday.
- Market Performance: The increase in stock value indicates strong market performance for Corning.
See More
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- Tech Sector Pressure: The S&P 500 and Nasdaq fell by 0.2% and 1%, respectively, primarily due to significant declines in enterprise software, with major players like Microsoft, Salesforce, and CrowdStrike facing substantial losses, indicating growing market concerns over tech stocks.
- Semiconductor Selloff: On Wednesday, AMD's stock plummeted nearly 16%, while market favorites like SanDisk and Micron also experienced double-digit declines, highlighting widespread pressure on stocks related to AI infrastructure and impacting investor confidence.
- Consumer Staples Resilience: Despite the downturn in tech stocks, there has been a market rotation into consumer staples, energy, and materials, with P&G's shares rising approximately 10% year-to-date, demonstrating its resilience and investment value amid market adjustments.
- Rating Adjustment: Given the renewed enthusiasm for P&G, we are downgrading its rating to hold, even though the stock remains about 10% below its 52-week high, reflecting a cautious approach to chasing market rotations.
See More
Corning's Optical Fiber Business Thrives Amid AI Demand
- Fiber Market Opportunity: Corning's fiber-optic cables are favored for their efficiency in data centers compared to copper, with the market expected to triple in size, particularly as AI developers demand high-speed data transmission, solidifying Corning's leadership in this sector.
- 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.
- Strong Financial Performance: Corning achieved core revenue of $16.4 billion in 2025, a 13% increase year-over-year, with its optical communications segment contributing $6.2 billion and growing at 35%, reflecting the company's robust performance and improved profitability in the fiber market.
- 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.
See More
