Corning (GLW) stock closed significantly higher on Monday after the company announced a multi-year, multi-billion-dollar deal with Amazon (AMZN).
The agreement will see it supply optical fiber, cable, and connectivity solutions for the behemoth’s expanding U.S. data center infrastructure.
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It’s the latest in a string of blockbuster hyperscaler transactions that have transformed the 175-year-old glass and materials company into a major artificial intelligence (AI) winner.
Including today’s gains, Corning shares have more than doubled since the start of this year.
www.barchart.comDoes the Amazon Deal Warrant Buying Corning Stock?
The Amazon deal will create about 1,000 new advanced manufacturing jobs at Corning’s facilities in North Carolina, along with hundreds of additional construction jobs.
For GLW stock, what it means is multi-year visibility into revenue tied to the fastest-growing capex theme in the market — U.S. data center expansion.
Supplying fiber and connectivity gear for AMZN’s build-out strengthens Corning’s pricing power, boosts volume, and reinforces that its optical segment is entering a sustained demand upcycle.
On Monday, Corning was even briefly seen trading above its 20-day moving average (MA), signaling bullish momentum could accelerate further in the days ahead.
Why Else Are GLW Shares Attractive to Own?
The fundamental picture warrants buying Corning shares as well. In Q1, the company saw sales hit $4.35 billion on a 30% year-on-year increase in per-share earnings — both ahead of Street estimates.
In fact, management now expects GLW to grow at a compound annualized rate (CAGR) of a rather solid 19% on continued AI-driven demand for its high-margin offerings.
Crucially, Corning has historically (over the past 16 years) rallied over 3.5% on average in July, a seasonal trend that further strengthens its appeal as an investment in the near term.
Investors should also note that GLW is strongly positioned to remain a beneficiary of the broader U.S. push to reshore the AI supply chain.
Corning Remains Buy-Rated Among Wall Street Firms
Wall Street analysts also remain positive on Corning, believing locked-in hyperscaler demand, domestic manufacturing tailwind, and an accelerating top line continue to strengthen the bull case.
The consensus rating on GLW shares sits at “Moderate Buy” currently, with price targets as high as $230 signaling potential upside of another 25% from here.
With locked-in hyperscaler demand, a domestic manufacturing tailwind, and an accelerating top line, the bull case for owning GLW shares only continues to strengthen.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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