Jim Cramer Explains Why To Hold Corning and Not Take Profits

Corning Incorporated (NYSE:GLW) is one of the stocks Jim Cramer talked about, along with the memory shortage. Cramer highlighted the company’s $6 billion deal with Meta, as he stated:

If you use your powers of observation, if you exercise some curiosity, you can find some very, very good investments. And that’s what happened to the Charitable Trust today when we struck gold with Corning, which rallied more than 15% on news of a gigantic contract from Meta for $6 billion in fiber optic cables… Now, today in our morning meeting… Jeff Marks and I told club members, please do not sell, even though Corning reports tomorrow morning. Now, I suspect I have to tell you that after this run, a more than 15% gain in one day, almost anything they report could be a letdown. It wouldn’t shock me if the stock could go down. But why not take profits? Two reasons. One, if Meta wants $6 billion in fiber optic cables, what will Microsoft want, or Tesla, or Google, or Amazon?

And two, the actual NVIDIA chips that predominate in the data center are chock-full of copper. What if one day Corning can figure out how to make fiber for the inside of the chip? Wouldn’t shock me. Data centers would almost immediately burn less hot, and therefore, need less electricity for climate control. But I digress… If I’d only focused on iPhone glass at that Corning plant, I would’ve missed out on something that’s given my Charitable Trust a huge gain. So follow your curiosity, drill down on what you see. Sometimes, there’s a terrific investment idea hiding in plain sight.

Corning Incorporated (NYSE:GLW) develops optical fiber, cables, and related hardware for telecommunications, and produces glass substrates for displays used in TVs, computers, and mobile devices. Moreover, it supplies specialty materials, emission control products, and laboratory equipment.

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Disclosure: None. This article is originally published at Insider Monkey.