Corning (GLW), the fiber optics and specialty glass company, saw its shares rise on early Wednesday after announcing a long-term partnership with Nvidia (NVDA). The stock gained nearly 22% in early trading and moved above its previous record high of $179.08.
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New trading tool for NVDA bearsThe partnership focuses on expanding U.S.-based production for optical connectivity systems used in AI data centers. As AI infrastructure grows, demand is also increasing for networking and fiber systems that help transfer large amounts of data between servers and AI chips.
Corning Expands Production for AI Demand
As part of the deal, Corning plans to increase its U.S. optical connectivity manufacturing capacity by 10 times. The company also said it will boost domestic fiber production by more than 50% to meet rising AI demand.
Modern AI systems rely on thousands of connected GPUs, increasing the need for high-speed fiber and networking technology. Nvidia CEO Jensen Huang said the partnership will support the next phase of AI infrastructure growth where “intelligence moves at the speed of light.”
Corning also plans to build three new manufacturing facilities in North Carolina and Texas. The expansion is expected to create more than 3,000 jobs in the U.S.
Is Corning Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Corning is Moderate Buy, based on seven Buy and four Hold ratings over the past three months. With that comes an average GLW stock price target of $168.91, representing a potential 4.20% upside for the shares.
