Corning: Bullish AI Catalysts From Partners Lumen And Google

Summary

• Corning stock has sold off ~15% from its recent high, but recent AI-related business developments indicate strong growth potential going forward.
• A big new fiber-optic supply agreement with Lumen Technologies is bullish and equates to 10% of Corning's global fiber capacity over each of the next two years.
• In another bullish catalyst, today, we learned that Google's entire new lineup of AI-powered Pixel 9 smartphones will use Corning's "Gorilla Glass Victus 2" displays.
• Despite a rich valuation on a TTM basis, Corning's strong free cash flow profile, margin expansion, and growth prospects make it an attractive investment opportunity in the AI infrastructure sector.
• In this article, I will explain why GLW stock is a BUY.

John M. Chase

Corning Inc. (NYSE:GLW) had a weak 2023 due to a deceleration in the historical trends in the optical fiber market. However, a recent ~15% pull-back in the stock (see chart below) combined with a very solid Q2 earnings report a couple

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I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.