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    The Bull Case For Corning (GLW) Could Change Following AI-Driven Optical Profit Surge - Learn Why

    Simply Wall St·12/07/2025 08:18:37
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    • Earlier this week, Corning reported stronger-than-expected third-quarter results, with core sales and earnings rising as its optical communications business grew rapidly on the back of AI-related demand.
    • With optical communications now generating more than half of Corning’s core profit, AI infrastructure has become a central driver of the company’s earnings mix.
    • We’ll now explore how Corning’s AI-fueled optical communications growth could reshape its existing investment narrative for long-term investors.

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    Corning Investment Narrative Recap

    To own Corning, you need to believe that AI-driven demand for high-bandwidth connectivity and glass-based technologies can support profitable growth across cycles. The latest quarter reinforces that view, with optical communications now the key short term catalyst as AI infrastructure spending flows through Corning’s fiber and connectivity products. The biggest risk is that this same dependency on Gen AI and related data center build outs cuts both ways if demand normalizes or large customers delay projects.

    Among recent announcements, the 33% year over year revenue increase in optical communications, which now delivers more than half of Corning’s core profit, is the clearest confirmation of this AI centered thesis. It directly ties into the company’s Springboard plan, where Gen AI data centers and related optical innovations are expected to drive incremental sales and help lift margins, while also increasing Corning’s exposure to any slowdown in those secular trends.

    Yet investors should also weigh how quickly Corning’s reliance on Gen AI demand could become a vulnerability if...

    Read the full narrative on Corning (it's free!)

    Corning's narrative projects $20.7 billion revenue and $2.6 billion earnings by 2028. This requires 13.4% yearly revenue growth and about a $1.8 billion earnings increase from $819.0 million today.

    Uncover how Corning's forecasts yield a $93.31 fair value, a 9% upside to its current price.

    Exploring Other Perspectives

    GLW Community Fair Values as at Dec 2025
    GLW Community Fair Values as at Dec 2025

    Four members of the Simply Wall St Community currently see Corning’s fair value between US$55 and about US$93 per share, highlighting wide dispersion in expectations. When you set those views against the company’s growing dependence on AI linked optical communications, it underlines how important it is to understand both the upside from secular demand and the risk if that demand falters.

    Explore 4 other fair value estimates on Corning - why the stock might be worth 36% less than the current price!

    Build Your Own Corning Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.