Meta Partners with Corning for $6 Billion Fiber-Optic Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Newsfilter
- Major Investment Agreement: Meta has committed to paying Corning up to $6 billion by 2030 for fiber-optic cables for its AI data centers, significantly enhancing Meta's competitive edge in AI infrastructure development.
- Surging Demand: Corning's optical communications revenue jumped 33% year-over-year to $1.65 billion in Q3, reflecting that AI data centers require far more fiber than traditional cloud computing, driving total sales up 14% to $4.27 billion.
- Technological Innovation: Corning's newly developed AI-specific fiber, named 'Contour', can fit twice as many strands into a standard conduit and reduce the number of connectors, thereby improving data transmission efficiency to meet the urgent needs of clients like Meta for higher computing capacity.
- Optimistic Market Outlook: Corning's CEO anticipates that hyperscalers will become its largest customers next year, as the proliferation of AI technology continues to drive fiber demand, further solidifying Corning's market position in optical communications.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 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.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 668.730
Low
655.15
Averages
824.71
High
1117
Current: 668.730
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
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.
Meta Platforms Forecasts $135 Billion Capex for AI in 2026
- Significant Revenue Growth: Meta Platforms reported a 24% year-over-year revenue increase to $59.9 billion for the quarter, with full-year revenue surpassing $200 billion, reflecting strong performance in its advertising and app businesses, thereby reinforcing its market leadership.
- Capex Forecast: The company anticipates capital expenditures to reach between $115 billion and $135 billion in 2026, representing a 73% increase from 2025, primarily driven by investments in Meta Superintelligence Labs and its core business, showcasing its strong commitment to the AI sector.
- Impact on AI Industry: The substantial increase in Meta's capex is likely to positively affect the AI industry, particularly benefiting partners like CoreWeave, which could enhance their market performance and accelerate the application and development of AI technologies.
- Positive Market Reaction: Following the earnings report, Meta's stock rose 8% in after-hours trading, indicating investor optimism regarding the company's growth potential, especially in light of accelerated AI investments, significantly boosting market confidence in its long-term strategy.
Continue Reading
Meta's Earnings Beat Expectations, Analysts Raise Price Targets
- Strong Earnings: Meta reported fourth-quarter earnings of $8.88 per share and revenue of $59.89 billion, both exceeding market expectations, indicating that AI-driven advertising monetization is alleviating concerns over rising operating and capital expenditures.
- Robust Guidance: The company expects first-quarter sales to range between $53.5 billion and $56.5 billion, significantly above the consensus estimate of $51.41 billion, suggesting strong growth momentum in its advertising business that reinforces its market position.
- AI Investment Returns: Despite a $6.02 billion operating loss from Reality Labs, analysts remain optimistic about Meta's AI investments, believing that the growth in its advertising business will offset these losses, with benefits from AI expected to materialize by 2026.
- Analyst Optimism: Several Wall Street analysts raised their price targets for Meta, with Barclays increasing its target to $800, implying a 20% upside, reflecting confidence in Meta's long-term growth potential.
Continue Reading