Corning (GLW)  $86

Industry/Sector/Type -  - - Fiber glass for infrastructure/cyclical with a secular boost from AI data center buildouts. 

Biggest catalyst for the stock -  AI models needing lighter and faster fiber for better data throughput, compared to copper.

The company is reasonably priced and can be bought on declines. It has jumped 83% in the past year, and 2026-2028 returns could be muted as a result.

Positives

Pick and shovel beneficiary of the AI datacenter boom, likely to see fiber optic revenue continue growing for the next 3-5 years.

Fiber-optic revenue is growing 39% YoY and now contributes about 40% of its total revenues, mitigating the weakness in its other segments such as Display (LCD panels) and Life Sciences.

Fiber-optics is an important and crucial connectivity piece of AI data center buildouts.

Strong diversification of clients in enterprise and carrier networks, including data center optics, fiber, and connectors .​

Additional long-term growth from 5G and AI networking as well as telco-to-hyperscaler convergence .

Its material science segment should also get a boost in 2027 from the QuantumScape (QS)deal to jointly develop ceramic separator manufacturing capabilities for QuantumScape’s solid-state lithium-metal batteries. If this succeeds it will meaningfully help revenues from 2027-2030.

Negatives

Corning is up 83% in the past year, so there will be a likely slowdown.

Copper will remain a strong competitor in shorter distances, short‑reach, copper‑optimized AI racks, but even competitors like Credo Technologies are adding optical DSPs and transceiver chips  to collaborate with Corning. 

Telco spending tends to be cyclical.

Return

1 Year 83% 5 Year 146% 10 Year 362%

The Valuation is pretty reasonable and it has decent margins, which will keep improving with fiber optics strength.

Valuation

P/S 4.5 Sales Growth 10% P/S Growth 0.45

P/E 30 Earnings Growth 16% PEG 1.8

Operating Margin 15%

Cash Flow Margin 16%