Celestica Inc. CLS and Corning Incorporated GLW are well positioned to benefit from the rapid buildout of AI infrastructure. Their exposure comes from different parts of the data-center ecosystem. Celestica supports hyperscale and enterprise customers with networking, compute, storage and other hardware solutions. Meanwhile, Corning is a prominent supplier of optical fiber, cable and connectivity technologies facilitating high-speed data transmission across AI data centers.
Per a report from Grand View Research, the global AI infrastructure market was valued at $35.42 billion in 2023. It is projected to reach $223.45 billion in 2030 with a compound annual growth rate of 30.4%. With both stocks benefiting from expanding AI infrastructure investment, the key question for investors is which company offers a better upside potential.
The Case for Celestica
The rapid AI data-center infrastructure buildout is driving growth in Celestica’s Communications business. The company continues to see strong traction for its 800G Ethernet switches across hyperscale customers. It is beginning to scale 1.6T switch programs. The combination of stable 800G switch demand and broader adoption of 1.6T technology is expected to provide strong revenue growth in upcoming quarters and throughout 2027.
Healthy traction in the Enterprise business is also driving demand. Celestica is seeing strong demand for its AI compute solutions from hyperscaler customers. Multiple compute programs are expected to ramp through 2027, backed by increasing investments in AI/ML computing infrastructure.
Celestica is also moving beyond the servers and networking domain. The company is set to manufacture custom rack systems for OpenAI. The company is working with OpenAI and Broadcom on multigenerational custom accelerator platforms. Celestica is also positioned to benefit from Advanced Micro Devices AMD’s growing AI infrastructure initiatives. Its involvement in AMD’s Helios scale-up platform represents a multibillion-dollar opportunity. These factors are diversifying Celestica’s AI-related growth beyond Ethernet networking and existing compute programs.
Celestica’s Advanced Technology Solutions segment provides another source of growth. The capital equipment business is benefiting from improving demand in the wafer-fabrication equipment market. Management expects these favorable trends to continue into 2027.
In the second quarter of 2026, Celestica generated $410.9 million in cash from operations compared with $152.4 million in the year-ago quarter. Free cash flow was $147.1 million, up 22.7% year over year. This accentuates efficient capital management and implies that the company is well-positioned to invest in growth initiatives, as well as pay debt and dividends. Celestica’s strong liquidity better positions it to navigate economic downturns and capitalize on emerging growth opportunities in the electronics manufacturing service industry.
The Case for Corning
Corning is benefiting from accelerating demand for optical connectivity as hyperscalers expand AI infrastructure. Its Enterprise Networks business is seeing strong demand for Gen AI products. Its growth opportunity extends beyond traditional data-center fiber as optical technology increasingly moves into scale-up networks and inside computing systems. The company is developing co-packaged and near-package optical solutions that could increase its content within next-generation AI infrastructure.
Over the past few quarters, the company has strengthened relationships with leading technology companies. Multiyear agreements with Meta, NVIDIA and Amazon are expanding the company’s role in supplying optical fiber, cable and connectivity solutions for AI infrastructure. Corning’s diverse portfolio offering beyond the AI infrastructure space strengthens its business model. Its strong presence in the automotive and consumer electronics market is a positive factor. It is also witnessing strong momentum in the solar business.
Corning faces intensifying competition as AI infrastructure drives investment across optical connectivity and networking. Rivals such as Amphenol and Ciena are expanding their capabilities in high-speed interconnects, optical systems and data-center networking. Amphenol’s high-speed copper, fiber optic and power interconnect portfolio gives it exposure across multiple AI data-center architectures. The acquisition of CommScope has also strengthened Amphenol’s portfolio.
Corning’s Glass Innovations business remains exposed to the cyclical consumer-electronics market. Higher memory costs are expected to weigh on handheld-device volumes. Corning is aggressively expanding its solar manufacturing footprint, but execution risks remain as the business scales. The Solar segment generated a $7 million net loss in second-quarter 2026, compared with a $7 million profit in the first quarter, as an extended shutdown, production upgrades and a permanent power transition added about $30 million in costs.
How Do Zacks Estimates Compare for CLS & GLW?
The Zacks Consensus Estimate for Celestica’s 2026 sales implies year-over-year growth of 64.27%, while that of EPS is projected to grow 87.11% year over year. The EPS estimates for 2026 and 2027 have increased over the past 60 days.
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The Zacks Consensus Estimate for Corning’s 2026 sales and EPS implies year-over-year growth of 15.78% and 29.76%, respectively. The EPS estimates have increased for 2026 and 2027 over the past 60 days.
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Price Performance & Valuation of CLS & GLW
Over the past year, Celestica has gained 31.8% compared with Corning’s growth of 124.8%.
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Celestica looks more attractive than Corning from a valuation standpoint. Going by the price/earnings ratio, Corning’s shares currently trade at 42.46 forward earnings, higher than 20.04 for Celestica.
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CLS or GLW: Which is a Better Pick?
Celestica sports a Zacks Rank #1 (Strong Buy), while Corning has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Celestica and Corning are taking several initiatives to capitalize on the expanding AI infrastructure market. AI Data-Center Expansion, growing hyperscaler partnerships are tailwinds for Corning. However, growing competition in the optical connectivity domain, weakness in the consumer electronics market and execution risks in the solar business are concerning.
Robust 800G Ethernet switch demand, the upcoming ramp of 1.6T programs and accelerating hyperscaler AI/ML compute deployments are expected to support strong growth for Celestica through 2027. Its collaboration with industry leaders such as OpenAI, Broadcom and AMD is propelling innovation. Owing to these factors, with a better valuation and a Zacks Rank #1, Celestica is a better investment option at present.
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