1 Under-the-Radar Artificial Intelligence (AI) Stock Most Investors Might Be Overlooking

Core Insights - The article highlights the expanding opportunities in the artificial intelligence (AI) sector, particularly focusing on Corning as a key player in AI infrastructure, which is often overlooked compared to larger companies like Nvidia, Microsoft, and Amazon [1][2]. Group 1: Corning's Role in AI - Corning, with a market capitalization of $36.8 billion, manufactures components essential for consumer electronics and data centers, positioning itself as a significant contributor to the AI boom [1][2]. - The company specializes in glass components, crucial for fiberoptic cables that enable fast data transmission, which is vital for AI development requiring hyperscale infrastructure [2][3]. - Corning's new RocketRibbon cable offers a 60% smaller diameter than competitors while maintaining a high fiber count, providing substantial space savings for data center operators [3]. Group 2: Financial Performance and Forecast - Corning reported $3.2 billion in revenue for Q1 2024, a 3% decline year-over-year, with its optical communications segment contributing $930 million, down 17% [4]. - The company has revised its Q2 revenue forecast from $3.4 billion to $3.6 billion, driven by increased sales of optical connectivity solutions for AI [5]. - Corning's 'Springboard' framework aims to add $3 billion in annual revenue in the coming years, representing a 22% growth on its 2023 revenue of $13.6 billion [4]. Group 3: Investment Potential - Corning's stock is considered relatively cheap, with a P/E ratio of 25.8, which is a 20% discount compared to the Nasdaq-100 index's P/E ratio of 32.3 [6]. - The company declared a second-quarter dividend of $0.28 per share, yielding 2.6%, which is higher than the dividends offered by Nvidia and Microsoft [7]. - Corning presents a compelling opportunity for investors looking to diversify their AI holdings or enter the AI space for the first time [8].