Core Insights - The development of artificial intelligence (AI) is heavily reliant on substantial computing power, primarily facilitated by large data centers utilizing advanced chips from suppliers like Nvidia and Broadcom, which have generated trillions in value for investors recently [1] Group 1: Company Overview - Corning has been a key manufacturer of glass for Apple's iPhone since 2007 and is a leading supplier of fiber optic cables that enhance the connectivity of AI data center chips, resulting in faster processing speeds [2] - Corning's stock has surged by 90% in 2025, outperforming Nvidia and Broadcom, which have seen returns of 46% and 59% respectively [3] Group 2: Market Opportunity - The demand for Corning's hardware is increasing significantly as data centers require a complex hardware stack for AI workloads, which includes GPUs, CPUs, storage chips, and high-bandwidth memory [5] - Fiber optic cables, invented by Corning, offer superior data transmission speeds and longer distances compared to traditional copper cables, with minimal data loss, positioning Corning as a technology leader in this field [6] - The data center opportunity for Corning is expanding rapidly, with expectations from CEO Wendell Weeks that the company's market potential in this area could double or triple over time due to the transition from copper to fiber optics and the scaling up of data center nodes [7]

Market Overview - Stocks experienced a significant rise for the second consecutive week, with the S&P 500 and Nasdaq increasing by 2% and 2.3% respectively, reaching record highs [1] - The S&P 500 peaked above 6,800 for the first time before closing just below that level, marking record-high closes for both benchmarks [1] Economic Indicators - The consumer price index (CPI) for September showed a month-over-month increase of 0.3% and a year-over-year increase of 3%, both lower than expected [1] - The core CPI, excluding food and energy, rose by 0.2% month-over-month and 3% year-over-year, also below expectations [1] - The CPI report is viewed positively as it opens the possibility for the Federal Reserve to consider interest rate cuts in their upcoming meeting [1] Earnings Reports - Approximately 30% of S&P 500 companies have reported quarterly results, with 87% exceeding earnings expectations, significantly higher than the typical 67% beat rate [1] - Notable companies reporting strong earnings include: - **Danaher**: Reported a beat on both revenue and earnings, with shares rising nearly 6.7% for the week [1] - **Capital One**: Achieved a substantial earnings beat, with strong credit performance, leading to a nearly 6.5% increase in shares [1] - **GE Vernova**: Reported strong earnings but saw a decline in shares due to weakness in speculative energy trades, despite maintaining a buy-equivalent rating [1] - **Honeywell**: Outperformed expectations in sales and earnings, with a notable rebound in its aerospace division, and raised full-year guidance [2] - **Dover**: Reported better-than-expected profits and raised full-year earnings guidance, resulting in a nearly 6.6% increase in shares [2] Company Ratings and Price Targets - **Danaher**: Price target maintained at $240 per share, downgraded to a 2 rating [1] - **Capital One**: Buy-equivalent 1 rating maintained with a price target of $250 [1] - **GE Vernova**: Buy-equivalent 1 rating maintained with a price target of $700 [1] - **Honeywell**: Buy-equivalent 1 rating maintained with a price target of $255 [2] - **Dover**: Buy-equivalent 1 rating maintained with a price target of $210 [2] Upcoming Earnings - Ten portfolio companies are scheduled to report earnings next week, including Amazon, Apple, and Microsoft, with evaluations of their performance potentially leading to changes in ratings or price targets [2]

Market Overview - The S&P 500 is on track for its seventh consecutive positive session, reaching record highs at the start of the trading week [1] - The Nasdaq is also showing gains, while the Dow Jones Industrial Average is slightly negative [1] AI Sector Developments - The AI sector is leading gains, particularly following the announcement of a major multiyear partnership between OpenAI and AMD [1] - Initial market reactions included selling shares of Nvidia and Broadcom, but these companies are not seen as significantly threatened due to their existing relationships with OpenAI [1] M&A Activity - Fifth Third Bank announced its acquisition of Comerica in an all-stock transaction valued at $10.9 billion, marking the largest U.S. bank merger of the year [1] - Goldman Sachs served as the exclusive financial advisor for Fifth Third in this transaction [1] Investment Banking Outlook - Anticipation of strong investment banking fee growth is expected in the upcoming third-quarter results from major banks, echoing Jefferies' results [1] - Goldman Sachs and Wells Fargo are set to report earnings on October 14 [1] Company Spotlight: Corning - Corning has been added to the Bullpen due to its strong performance in specialty glass production, particularly fiber optic cables [1] - The demand for fiber and connectivity products is surging due to the transition from copper to optical systems in telecommunications and the rise of AI [1] - Corning's stock has increased by approximately 80% this year, bolstered by a $2.5 billion commitment from Apple for cover glass production [1] Upcoming Earnings Reports - Constellation Brands, the brewer of Corona and Modelo, is scheduled to report earnings after the market closes on Monday [1] - McCormick, a spice maker, will report its earnings before the market opens on Tuesday [1]

[Music] [Music] Earlier, I showed you my two-part interview with Tim Cook, the CEO of Apple, and Wend Weeks, the chairman and CEO of Corning. We got to talking about their long-standing partnership and Apple's recent decision to double down on it. But I didn't get a chance to celebrate just how successful Corning's been in this environment.Look, this is a company that's famous for making all sorts of specialty glass, including the fiber optic cables that are used to link graphics cards processor at the hear ...