GLW's Robust Portfolio Fuels Customer Growth: Will the Trend Persist?

Corning Incorporated GLW is benefiting from solid customer growth across several segments. The company’s growing prowess in developing state-of-the-art cover materials is driving growth in the Specialty Materials segment. Major smartphone manufacturers, including Samsung, are deploying Corning Gorilla Glass Ceramic 2 in the next-gen Galaxy S25 Edge devices.

Recently, Apple has committed to investing around $600 billion over the next few years in the United States. Corning has become a major part of this initiative. Apple has committed $2.5 billion investment to develop all of iPhone and Apple Watch’s cover glass in Corning’s Kentucky manufacturing facilities. QuantumScape is also collaborating with Corning to jointly develop ceramic separator manufacturing capabilities for solid-state batteries.

Broadcom, a major player in the semiconductor industry, has also formed a collaboration with GLW. Leveraging Corning’s solution, Broadcom is aiming to deliver a next-generation co-packaged optics infrastructure designed to enhance the processing capabilities of AI data centers. Major telecom player, Lumen, accelerated its network expansion effort to match surging AI demand. It is sourcing next-generation fiber optic cable from Corning, driving growth in the Optical Communications segment.  Corning is also focusing on developing the domestic solar supply chain in the United States. The company expects to triple its sales run rate by 2027 and aims to add $1.6 billion in annualized revenues from the solar energy vertical.

Corning’s diverse portfolio offerings, catering to a wide range of industries, are a major strength. Such comprehensive product suite increase its resiliency amid growing macroeconomic and geopolitical challenges.

Per a report from Mordor Intelligence, the fiber optic cable market is projected to witness an 10.46% compound annual growth rate between 2025 and 2030. Another report from Mordor Intelligence suggests that the U.S. solar energy market will likely witness a 15.11% CAGR in the 2025-2030 period. GLW is well-positioned to gain from this emerging market trend. Automotive interior display, virtual reality systems, foldable smartphones and smartwatches also present solid growth potential.

Other Tech Firms Benefiting From a Diverse Business Model

A diversified business model and comprehensive portfolio offerings continue to drive a steady inflow of customers for Amphenol Corporation APH. The company boasts a strong presence in automotive, broadband communication, Industrial, Information Technology and Data Communications, Military, Mobile Devices and Mobile Networks verticals. Strategic buyouts are enabling Amphenol to expand across a broad array of technologies and markets. The company has acquired CommScope’s Outdoor Wireless Networks and Distributed Antenna Systems businesses. This has expanded Amphenol’s competitive strength in the communications networks market.

Jabil Inc. JBL has also diversified its portfolio to boost resiliency in its business model. The company’s comprehensive portfolio caters to a wide range of industries, including automotive & transportation, renewables & energy infrastructure, healthcare, capital equipment, networking & communications, and cloud. Jabil is also betting big on the AI data center infrastructure market. The company is set to invest $500 million over the next several years in the Southeast U.S. region to expand its manufacturing capabilities. This will strengthen Jabil’s position in the AI hardware supply chain.

Corning's Price Performance, Valuation & Estimates

Corning’s shares have gained 81% compared to the communications components industry’s growth of 87.5%.

From a valuation standpoint, the company’s shares currently trade at 30.49 forward 12-month earnings, lower than the industry.

Earnings estimates for Corning for 2025 and 2026 have increased over the past 60 days.

Corning currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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