Ac t i o n | 23 Feb 2026 20:46:05 ET │ 31 pages China Communication Infrastructure CPO scale-up a new TAM, on top of upbeat 2027 pluggable demand CITI'S TAKE We evaluate the potential TAM for CPO optics supply chain in this report given the deployment in scale-up likely to come in late 2027. The optics supply chain will likely see stocking demand in 2H27. We assume 300/5k/209k units of CPO switches in 2025/26/27E (vs. prior 100k in 2027E) in which 169k units of CPO switch shipments are assumed for scale- up ...

-- AI Is Making This Glass Maker One of the Year's Hottest Stocks [Stocks End Week Higher After Tariff Ruling, Economic Data][Supreme Court Strikes Down Most Of Trump's Tariffs][Economy Grew Far Less Than Expected in Q4][Inflation Was Hot to End 2025]- Top StoriesCorning makes fiber optic cables for use in the data centers powering the AI boom.Travis Dove / The Washington Post / Getty ImagesClose### Key Takeaways- The stock achieved its first record high since 2000 earlier this year.- Corning shares have so ...

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Core Viewpoint - The recent surge in $GLW's stock price, driven by a significant $6 billion deal with $META, indicates a potential re-rating of the company's market value due to supply constraints and increasing demand for fiber optics in the AI sector [3][4]. Group 1: Company Developments - $GLW's stock rose 16% following the announcement of a $6 billion deal with $META, and it has since been trading near all-time highs at $133.46, reflecting a 51% year-to-date increase [3]. - The company has a history of significant deals, including a previous agreement with LUMN that reserved 10% of its fiber optic capacity, which is set to expire soon, suggesting further opportunities for new contracts [4][5]. Group 2: Market Dynamics - There is a scarcity issue in the fiber optic market, which is expected to enhance pricing power and margins for $GLW as demand continues to rise [4][5]. - The transition to fiber optics in servers is anticipated, with companies like META positioning themselves ahead of the demand curve, indicating a broader market shift that could benefit $GLW [7]. Group 3: Investment Sentiment - Despite the stock's recent performance, there is a perception that $GLW is not currently a "story" stock, with limited social media chatter and a lack of aggressive bullish sentiment, which may present a buying opportunity [8][9]. - The potential for $GLW to reach $200+ is being considered, with ongoing analysis of its fundamentals expected to provide further insights [10].

Company Overview - GE Vernova Inc. (NYSE:GEV) is an industrial machinery manufacturer focused on the power generation industry [2] - The company's shares have increased by 118% over the past year and by 18% year-to-date [2] Analyst Ratings and Price Targets - Baird raised GE Vernova's share price target to $923 from $701 and upgraded the rating to Outperform from Neutral, citing optimism due to the energy infrastructure cycle [2] - Guggenheim upgraded GE Vernova's rating to Buy from Neutral and set a price target of $910, highlighting the firm's potential to exceed market expectations for cash generation and capital expansion [2] Market Sentiment and Commentary - Jim Cramer has been a strong advocate for GE Vernova, linking it to speculative nuclear plays and emphasizing its capability to deliver nuclear power plants on an aggressive timeline [2] - Cramer recently mentioned the positive impact of Vertiv's orders on GE Vernova, stating it remains a buyable stock [3]

We recently published 13 Stocks Jim Cramer Talked About.  Eaton Corporation (NYSE:ETN) is one of the stocks that Jim Cramer talked about. Eaton Corporation (NYSE:ETN) is a power management products provider. The shares are up by 25.9% over the past year and by 18.9% year-to-date. RBC Capital commented on the firm in early February. It raised the share price target to $407 from $399 and kept an Outperform rating. The bank outlined that Eaton Corporation (NYSE:ETN) had posted strong fourth quarter earnings ...

分组1 - Jim Cramer discussed the challenges facing public listings of enterprise software firms, emphasizing the importance of IPOs for growth in the current market climate [1] - The article lists stocks mentioned by Jim Cramer during a recent CNBC appearance, along with hedge fund sentiment data for each stock as of Q3 2025 [3] - Research indicates that imitating top stock picks from hedge funds can lead to market outperformance, with a reported return of 427.7% since May 2014 [4] 分组2 - Corning Incorporated (NYSE:GLW) has seen a 154% increase in shares over the past year and a 47% increase year-to-date, with a recent revenue report of $4.41 billion and earnings per share of $0.72 [5] - Eaton Corporation (NYSE:ETN) shares are up by 25.9% over the past year and 18.9% year-to-date, with strong fourth-quarter earnings and raised price targets from RBC Capital and Morgan Stanley [6]

Core Insights - Corning Incorporated (GLW) is experiencing significant growth in its Optical Communications segment, with revenues reaching $6.3 billion in 2025, marking a 35% year-over-year increase [1][8] - The enterprise network business of Corning has shown remarkable growth of 61% year over year in 2025 [1][8] - Corning has secured a $6 billion multiyear agreement with Meta Platforms for AI data center products, indicating strong market traction among hyperscaler customers [3][8] Optical Communications Segment - The Optical Communications segment is a key growth driver for Corning, contributing $6.3 billion in revenue in 2025, with a 35% increase from the previous year [1][8] - The enterprise network business within this segment grew by 61% year over year, showcasing robust demand [1][8] AI Data Center Growth - Gen AI-driven data center buildouts are significantly contributing to Corning's growth, with the company gaining traction among hyperscaler clients [3] - The carrier network business also grew by 15% year over year, supported by strong demand for data center interconnect solutions [3][8] Competitive Landscape - Corning faces competition from Amphenol Corporation and Ciena Corporation, both of which are also capitalizing on the growing demand for high-speed connectivity solutions [5][6] - Amphenol's Communications Solutions segment generated $3.42 billion in revenue in the fourth quarter, reflecting a 77.5% year-over-year increase [5] - Ciena reported $1.05 billion in revenues from its Networking Platforms segment, up 22% year over year, as it diversifies its presence in the data center connectivity market [6] Business Model and Valuation - Corning's risk-sharing business model, which includes customer prepayments and long-term commitments, mitigates risks associated with fluctuating demand and capital expenditures [4] - Currently, Corning's shares are trading at a price/earnings ratio of 41.88, which is lower than the industry average of 42.62, indicating a potential valuation opportunity [9]

Core Insights - Corning (GLW) shares have surged 50.2% year-to-date, driven by a $6 billion multiyear fiber optic supply deal with Meta for AI data centers, and strong earnings performance [1] - The company achieved a 20% operating margin target one year ahead of schedule, with Q4 2025 earnings beating expectations [1] - The Optical Communications segment grew 24% year-over-year, reaching $1.70 billion in revenue, with enterprise sales increasing by 58% due to Gen AI adoption [1] Earnings Performance - Corning reported Q4 2025 EPS of $0.72, exceeding Wall Street's estimate of $0.7125, and revenue of $4.412 billion against expectations of $4.396 billion [1] - The company has achieved four consecutive quarters of earnings beats in 2025, with full-year core EPS increasing by 26% and operating margins expanding by 390 basis points to 20.2% [1] - Management has upgraded its Springboard plan to target $11 billion in incremental annualized sales by 2028, up from the original goal of $8 billion [1] Strategic Partnerships - The partnership with Meta, announced on February 3, is valued at up to $6 billion and is a significant driver of the stock's recent performance, leading to an 18.3% increase in a single session [1] - This agreement validates Corning's strategic focus on optical connectivity for AI infrastructure, contributing to the strong growth in its Optical Communications segment [1] - UBS analyst raised the price target for Corning from $109 to $125, indicating confidence in the expanding optical deal pipeline [1] Future Outlook - Corning's Q1 2026 outlook anticipates core sales growth of approximately 15%, with revenue projected between $4.2 billion and $4.3 billion and core EPS between $0.66 and $0.70 [1] - The company is expanding production capacity, including a new optical connectivity facility in India expected to open later in 2026 [1] - Wall Street expects earnings to reach $3.08 in 2026, up from $2.52 last year, with projections of nearly tripling to $7.01 by 2030 [1]

Revenue Segments - The Optical Communications segment represented 38% of Corning's total segment net sales in 2025[25]. - The Display segment accounted for 23% of Corning's total segment net sales in 2025[29]. - The Specialty Materials segment contributed 13% to Corning's total segment net sales in 2025[36]. - The Automotive segment made up 11% of Corning's total segment net sales in 2025[43]. - The Life Sciences segment represented 6% of Corning's total segment net sales in 2025[48]. - Hemlock and Emerging Growth Businesses accounted for 9% of Corning's total segment net sales in 2025[51]. - Corning's Optical Communications segment accounted for 28% of total segment net sales in 2025, while the Display segment represented 59%[101]. Product Innovations - Corning introduced the SMF-28e® Contour fiber, which is 40% smaller and improves bend resistance, catering to the generative AI enterprise demand[22]. - Corning's Gorilla® Glass Victus® 2 was unveiled in 2022, enhancing drop performance on rough surfaces while maintaining scratch resistance[31]. - Corning's semiconductor optics products include the newly introduced Corning® EXTREME ULE® Glass, supporting advanced technology demands[33]. - Corning's automotive glass solutions include innovations like AutoGrade™ Gorilla® Glass and 3D ColdForm™ Technology, enhancing design and sustainability[41]. Patents and Intellectual Property - In 2025, Corning was granted approximately 370 patents in the U.S. and over 970 patents internationally[60]. - At the end of 2025, Corning owned about 11,375 unexpired patents globally, with approximately 4,015 being U.S. patents[61]. - The company faces challenges in enforcing intellectual property rights, which may lead to loss of market share and decreased sales and profits[104]. - Corning's innovation model relies on attracting specialized expertise in glass science and optical physics, and losing key personnel could adversely affect operations and financial performance[111]. Financial Performance - Net sales for the year ended December 31, 2025, increased by $2.5 billion, or 19%, compared to 2024, driven by strong demand in optical communications products, which rose by $1.6 billion[163]. - Gross margin increased by $1.3 billion, or 31%, with gross margin as a percentage of net sales rising from 33% in 2024 to 36% in 2025[166]. - Selling, general and administrative expenses rose by $191 million, or 10%, but decreased as a percentage of net sales from 15% in 2024 to 14% in 2025[168]. - Research, development, and engineering expenses increased by $21 million, or 2%, and decreased as a percentage of net sales from 8% in 2024 to 7% in 2025[169]. - Income before income taxes increased by $1.2 billion compared to 2024, driven by higher operating income from increased gross margin[175]. - Core net sales for the year ended December 31, 2025, reached $16.4 billion, a 13% increase from $14.5 billion in 2024[208]. - Core net income for 2025 was $2.2 billion, or $2.52 per share, representing a 29% increase from $1.7 billion, or $1.96 per share, in 2024[210]. Operational Challenges - The company faces risks related to inflationary price pressures and uncertain availability of raw materials, which could negatively impact profitability[95]. - Significant disruptions in supply chains or manufacturing could lead to higher costs and affect the ability to meet customer demand[96]. - Health crisis events, such as pandemics, have previously impacted operations and may continue to disrupt supply chains[98]. - The company has experienced challenges in accurately forecasting demand, which could lead to excess or obsolete inventory[97]. - Corning's manufacturing operations are vulnerable to disruptions due to geographical concentration in Asia Pacific, which could negatively impact net sales, net income, and liquidity[103]. - Uncertain economic conditions and consumer demand fluctuations could materially impact Corning's operating results and ability to forecast performance[120][122]. Employee and Safety Metrics - Approximately 68% of Corning's 67,200 employees are in production and maintenance roles, with over 66% represented by unions or works councils[68]. - Salaried talent retention in 2025 remained strong at 96.9%, indicating effective talent management strategies[74]. - The annual Total Recordable Incident Rate (TRIR) was 0.26 in 2025, reflecting Corning's commitment to employee safety[75]. Environmental and Compliance Issues - Corning's capital expenditures for pollution control in operations were approximately $7.9 million in 2025, estimated to rise to $18.9 million in 2026[65]. - The company has accrued approximately $89 million for environmental cleanup liabilities as of December 31, 2025[146]. - Compliance with environmental regulations is critical, as failure to adhere could result in fines, operational interruptions, and increased compliance costs[112][113]. Cybersecurity and Risk Management - The company has a cybersecurity risk management program aligned with the NIST Cybersecurity Framework to protect critical IT systems[136]. - Corning's Board of Directors oversees cybersecurity risks, with the IT Committee reviewing the company's cybersecurity posture regularly[138]. - The company has a continuous vulnerability management process to monitor threats in its IT environment[139]. - Cybersecurity vulnerabilities pose risks to revenue and operational integrity, with potential for significant adverse effects from data breaches or system disruptions[106][108]. Strategic Goals - Corning aims to add $4 billion in incremental annualized core sales by the end of 2026, upgraded from an initial target of $3 billion[159]. - The company achieved its core operating margin target of 20% a year ahead of schedule as of Q4 2025[159]. - For Q1 2026, Corning expects core net sales to be in the range of approximately $4.2 billion to $4.3 billion[160].