In this articleMETAOCAAPLwatch nowAs Meta tries to rapidly construct massive data centers to keep pace with the artificial intelligence craze, it's turning to a 175-year-old glass manufacturer for help.Meta has committed to paying Corning up to $6 billion through 2030 for fiber-optic cable in its AI data centers, Corning CEO Wendell Weeks told CNBC in an exclusive interview about the deal from a cable factory in Hickory, North Carolina.Corning is expanding the facility to accommodate growing demand from Met ...

Corning Incorporated (NYSE:GLW) is one of the stocks in focus as Jim Cramer shared his weekly game plan. Cramer noted how he spoke of the company during the latest monthly Investing Club meeting, as he said: CNBC Investing Club members, look out. You’re going to be flooded with emails Wednesday because Charitable Trust holdings, Danaher, Starbucks, GE Vernova, Microsoft, Meta, and Corning all report. Let me give you a preview… We had our investing club monthly meeting yesterday, and I spoke positively abo ...

Core Insights - Corning Incorporated (NYSE:GLW) is recognized as one of the top 5G stocks to invest in according to hedge funds, with a recent price target increase from BofA Securities from $95 to $110 while maintaining a Buy rating ahead of its Q4 earnings report on January 28 [1][2] Group 1: Price Target Adjustments - BofA Securities anticipates Corning will meet quarterly expectations and expects guidance for its Display business to remain profitable, along with insights into its Optical, Solar, and Specialty segments for fiscal 2026 [2] - Morgan Stanley also raised its price target for Corning from $82 to $98, maintaining an Equal Weight rating, highlighting the expansion of AI investments beyond semiconductor stocks, which benefits infrastructure companies in the optical sector [3][4] Group 2: Market Position and Business Segments - Corning is a global materials science company that produces advanced glass, ceramics, and optical products, serving various markets including optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences [4] - The company plays a crucial role in providing fiber-optic cables and connectivity hardware essential for 5G network infrastructure [4]

Core Insights - Analysts project Corning (GLW) will report quarterly earnings of $0.70 per share, reflecting a 22.8% year-over-year increase, with revenues expected to reach $4.32 billion, an 11.6% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1][2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Forecast - Analysts estimate 'Net Sales- Display Technologies' at $880.85 million, a decrease of 9.3% year over year [4] - 'Net Sales- Hemlock and Emerging Growth Businesses' is projected at $464.86 million, an increase of 24.6% year over year [4] - 'Net Sales- Specialty Materials' is expected to reach $587.56 million, indicating a 14.1% increase from the prior-year quarter [4] Segment Sales and Income - The consensus for 'Net Sales- Life Sciences' is $249.13 million, showing a slight decline of 0.4% year over year [5] - 'Net Sales- Optical Communications' is forecasted at $1.71 billion, reflecting a 24.8% increase from the year-ago quarter [5] - 'Segment Net Income- Display Technologies' is expected to be $216.95 million, down from $262.00 million in the same quarter last year [5][6] - 'Segment Net Income- Life Sciences' is projected at $17.35 million, compared to $18.00 million a year ago [6] - 'Segment Net Income- Optical Communications' is anticipated to reach $261.29 million, up from $194.00 million last year [6] - 'Segment Net Income- Specialty Materials' is estimated at $98.80 million, compared to $81.00 million in the previous year [7] Stock Performance - Over the past month, Corning's shares have returned +5.2%, outperforming the Zacks S&P 500 composite's +0.6% change [7] - Corning currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [7]

Core Insights - The U.S. solar manufacturing sector has historically received bipartisan support, but recent political conflicts are creating uncertainty and challenges for the industry [1][2][10] - The One Big Beautiful Bill Act (OBBBA) introduces changes that could negatively impact solar manufacturing, including an accelerated phase-out of the Investment Tax Credit (ITC) and increased content requirements [3][10] - Despite significant growth in solar manufacturing, the industry still struggles to meet domestic demand, with experts indicating that imports will still be necessary to supplement production [6][15] Industry Growth and Investment - The U.S. solar manufacturing sector has seen a 300% increase in solar cell production and a 37% increase in solar module production, with capacity exceeding 60 gigawatts by late 2025 [6] - Companies like Qcells have made substantial investments, such as a $200 million solar panel manufacturing facility in Georgia, driven by favorable market conditions and tax credits [8][9] - The Inflation Reduction Act under President Biden has provided a 30% tax credit for solar projects through 2032, contributing to market growth [8] Challenges and Uncertainties - The accelerated phase-out of the ITC and modifications to the 45X tax credit under OBBBA are seen as threats to the momentum of solar manufacturing efforts [10][12] - The current policy landscape is described as precarious, with business leaders expressing concerns over the reversal of tax credits and the impact of tariffs on long-term investments [11][12] - Experts emphasize the need for policy stability to justify major investments, as the solar market requires time to develop and scale [16][17] Supply Chain Dynamics - While the U.S. can produce every major component of the solar supply chain, it is still not sufficient to meet current domestic demand [6][14] - Companies like Corning are expanding their manufacturing capabilities, but the market will still rely on imports to fulfill production needs [15] - A three-legged stool approach is suggested for reshoring U.S. solar manufacturing, which includes tariffs, supply-side policies, and domestic content incentives [13]

Core Insights - Corning Incorporated (GLW) is set to report its Q4 earnings on January 28, indicating a focus on upcoming financial performance and market expectations [1] Company Overview - Corning is recognized for its long-term investment potential, appealing to investors with a 5-10 year horizon [1] - The company is part of a diversified portfolio strategy that includes growth, value, and dividend-paying stocks, with a particular emphasis on value investments [1] Investment Strategy - The investment approach includes a mix of stock types, with a tendency to prioritize value stocks over others [1] - The company also engages in options trading as part of its investment strategy [1]

Group 1 - Corning (GLW) has been highlighted as a top stock by mutual funds due to its strong relative strength line and collaboration with major tech companies like Nvidia (NVDA), Broadcom (AVGO), and Microsoft (MSFT) in building artificial intelligence infrastructure [4][7] - Corning's composite rating has risen to 98, indicating strong performance and market leadership [7][9] - The stock market is experiencing a surge in small-cap stocks, with Corning showing significant price performance improvements, achieving an RS rating of 83 [9]

Group 1 - Nvidia CEO Jensen Huang predicts that data center operators could spend up to $4 trillion annually on infrastructure upgrades to meet AI demand by 2030, benefiting Nvidia and other suppliers of chips and components [1] - Corning, known for supplying glass for Apple's iPhone, is a key player in the AI space with its fiber optic cables that enhance data transfer speeds in data centers compared to traditional copper solutions [2] - Corning's stock increased by 84% in 2025, outperforming Nvidia's 39% rise, and the company is expected to report its strongest annual results on January 28, with management's guidance for 2026 being crucial for future stock direction [3] Group 2 - The shift from copper to fiber optic technology is set to transform Corning's business, as AI development requires significant computing power concentrated in large data centers filled with specialized chips [5] - Fiber optic cables are superior to copper in terms of speed and distance for data transmission, which is essential for maximizing GPU performance in AI workloads [6] - Data center operators are transitioning from copper to fiber optic cables, with increasing AI software demands leading to larger nodes that require more GPUs and cabling [7] Group 3 - Corning is a leading supplier of fiber optic cables for data centers, and the market for these cables is expected to double or triple due to rising demand from AI developers, making Corning's stock still attractive despite its recent gains [8]

Core Viewpoint - Corning Incorporated (GLW) is expected to report fourth-quarter 2025 earnings on January 28, 2026, with sales estimated at $4.35 billion and earnings per share (EPS) at 70 cents [1][6]. Earnings Estimates - Earnings estimates for GLW have remained stable at $2.52 per share for 2025, while estimates for 2026 have increased from $3.01 to $3.04 per share over the past 60 days [1][2]. - The current earnings surprise history shows that Corning has exceeded expectations in the last four quarters, averaging a surprise of 4.1% [2][6]. Factors Influencing Results - Corning's collaboration with Ensurge aims to develop ultra-high-performance solid-state micro batteries, which is expected to generate incremental revenues [7]. - The Specialty Materials segment is experiencing growth due to the deployment of Corning Gorilla Glass Ceramic 2 by major smartphone manufacturers like Samsung [8]. - Corning is expanding its presence in the U.S. solar supply chain through its Solar Market Access Platform, positioning itself as a leading producer of semiconductor polysilicon [9]. Price Performance - Over the past year, Corning's stock has increased by 71.4%, while the industry has grown by 89.2% [10]. - Compared to peers, Corning has outperformed ADTRAN Holdings, Inc. (ADTN), which declined by 11.8%, but lagged behind Ciena Corporation (CIEN), which surged by 154.3% [10]. Valuation Metrics - Corning's shares currently trade at a price/earnings ratio of 30.19, which is lower than the industry average of 34.12 but higher than its own historical mean of 17.1 [11]. Investment Considerations - The company is expected to benefit from strong market traction in the AI data center and consumer electronics sectors, alongside a robust focus on innovation and financial discipline [14][15]. - Upward revisions in earnings estimates reflect growing investor confidence in Corning's growth potential [14]. Conclusion - With solid fundamentals and a strong earnings surprise history, Corning appears well-positioned for positive quarterly results, making it an attractive option for investors [16].

Group 1: Investment Recommendations - Bank of America has identified several stocks well-positioned for the upcoming earnings season, including Amazon.com Inc., Brookdale Senior Living Inc., Corning Inc., Vertiv Holdings Co., and Carvana Co. [1] - Amazon is highlighted as a compelling investment due to its potential for valuation improvement, particularly if AWS revenue growth accelerates and AI capabilities are strengthened [2][3] - Brookdale Senior Living has been upgraded to a buy rating, benefiting from an aging population, with shares rising nearly 13% this year [4] - Carvana is recognized for its growth potential, driven by innovation and new initiatives, with its stock up 6% this year [5] - Corning has been rated a buy, supported by a favorable balance of glass supply and demand, and expected growth from carrier spending and Gen AI in the Optical market [6] - Vertiv is expected to benefit from margin recovery and improved free cash flow, with increased demand for its thermal management products due to AI adoption in data centers [7] Group 2: Market Trends and Earnings Outlook - The tech industry is anticipated to have a strong Q4 earnings season, with predictions of impressive earnings from tech giants like Amazon, Microsoft, and Alphabet, driven by demand for AI enterprise services [8] - The upgrade of Brookdale Senior Living reflects strong growth potential in the senior housing sector, despite challenges in the healthcare landscape [9] - Corning's strong Q3 results, with core sales up 14% year over year and enterprise sales in Optical Communications surging 58%, highlight ongoing shifts in digital infrastructure and materials science sectors [10]