Corning is a materials science leader benefiting from high demand for optical interconnects in AI data centers. Honeywell International offers massive scale as an industrial conglomerate with diverse exposure to aerospace and automation.
The average of price targets set by Wall Street analysts indicates a potential upside of 26.1% in Corning (GLW). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
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GLW and CIEN stand out as AI-driven network demand fuels strong growth, rising backlogs and further upside potential.
GLW's AI-driven optical growth, major data-center deals and surging solar sales are reshaping its outlook despite valuation and profit risks.
The artificial intelligence (AI) build-out has historically focused on the semiconductor sector, driving valuations to historic premiums as capital chased processing power. However, processing capabilities hold limited utility without the physical infrastructure required to transmit staggering data volumes.
GLW signs a $3 billion-plus AT&T deal to expand U.S. broadband, boosting fiber capacity as data use and AI adoption drive connectivity demand.
Corning Inc (NYSE:GLW, XETRA:GLW) will supply the fiber and cable AT&T needs to expand its network under a multi-year agreement valued at more than $3 billion, the companies said on Tuesday. The news sent Corning shares up almost 4%, while AT&T Inc (NYSE:T, XETRA:SOBA) shares were down around 0.6%.
AT&T signed a $3 billion deal with Corning, which will supply the mobile carrier with the fiber and cable needed to expand its network and meet growing demand for data.
I am rating Corning a Strong Buy with a price target of $177. Optical Communications is the biggest growth driver, with Enterprise Network revenue already growing 65% y/y. GLW isn't cheap, but I believe it can grow into its valuation.
GLW expands AI and telecom partnerships with Meta, Amazon, NVIDIA and Verizon, boosting connectivity opportunities as AI data-center demand grows.
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