Can Corning's Multi-Year AI-Focused Deal With Meta Boost Its Shares?

Corning Incorporated GLW has signed a long-term deal worth up to $6 billion with Meta Platforms META to support U.S. data center expansion, creating high-quality jobs, boosting local economies, and reinforcing the U.S. position in the global AI race. 

Per the deal, Corning will supply Meta with advanced optical fiber, cable, and connectivity products needed for high-speed AI data centers. To meet the rising demand, Corning will increase production in its North Carolina manufacturing facility, with a major expansion at its Hickory plant, with Meta as the anchor customer.

The investment is expected to increase Corning’s workforce in North Carolina, supporting a large and highly skilled workforce. It will also strengthen U.S. supply chains and support American-made technology for next-generation data centers. 

Corning has also partnered with Ensurge to apply its materials science expertise to advance Ensurge’s solid-state micro battery technology. The company also teamed up with GlobalFoundries to provide glass, optical fiber, and connectivity solutions for developing detachable fiber connector technology.

The collaborations will help Corning to strengthen its business through steady revenues, expanded domestic manufacturing, job creation, and stronger leadership in optical solutions for AI data centers. Through innovation and strong partnerships, Corning continues to grow and strengthen its leadership in advanced technologies.

How Are Competitors Performing?

Corning faces competition from Amphenol Corporation APH and Ciena Corporation CIEN. Amphenol recently expanded its fiber optic and connectivity capabilities by acquiring CommScope’s Connectivity and Cable Solutions business. The company is experiencing strong growth in data communications and AI infrastructure markets, highlighting its focus on expanding fiber and connectivity capabilities.

Ciena is expanding its fiber network by upgrading connections between Serbia and Bosnia to 800 Gb/s, boosting regional connectivity and future capacity. The company is also introducing advanced fiber solutions to meet growing demand for high-speed networks for AI and broadband. Ciena partnered with Omantel to launch a high-capacity fiber network in the Middle East for data centers, AI, and cloud workloads.

Corning's Price Performance, Valuation & Estimates

Shares of Corning have rallied 106.7% over the past year compared with the industry’s growth of 125.7%.

From a valuation standpoint, the company’s shares currently trade at 33.64 forward 12-month earnings, lower than the industry tally of 36.76.

Earnings estimates for Corning for 2026 have increased 1% to $3.03, while earnings estimates for 2027 have increased 0.3% to $3.44 over the past 60 days.

Corning currently has a Zacks Rank #3 (Hold). 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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