NEW YORK, March 10, 2026, 12:41 PM EDT
Corning jumped roughly 6.5% to $137.50 by midday Tuesday. Ciena and Lumentum, both in the optical networking space, also saw gains, each climbing more than 6%.
The rebound is drawing attention: Corning has turned into a key barometer for fiber and connectivity equipment spending—the backbone for AI data centers. Those product lines now account for close to 40% of its revenue. Back in January, Corning projected core sales for the first quarter—its preferred adjusted revenue metric—between $4.2 billion and $4.3 billion, handily topping Wall Street’s expectations, thanks to robust demand for optical fiber. Reuters
The shift began last week after Broadcom CEO Hock Tan weighed in, saying customers are probably sticking with direct-attached copper for inside-the-rack AI links. The reason: optics cost more and draw “significantly more power.” For suppliers pushing the next generation of AI networking equipment, those short-range connections remain a sticking point. The Motley Fool
That hit Corning, as more investors now view the company as a co-packaged optics play—putting optical links right up against chips. William Blair’s Sebastian Naji pointed out in a note last week that broad CPO adoption is “still likely 2-3 years away from seeing a meaningful inflection,” framing the situation as a matter of timing rather than strategy. Barron’s
Management’s been pushing that argument for months. Back in January, Chief Financial Officer Ed Schlesinger pointed to “exciting momentum” heading into 2026, after Corning posted a 24% jump in fourth-quarter optical communications revenue, reaching $1.70 billion. The company also raised its long-term growth outlook. Corning Investor Relations
Corning grabbed a headline AI-infrastructure contract this year, signing a multiyear agreement with Meta Platforms that could bring in as much as $6 billion for fiber-optic cable and connectivity gear to power U.S. AI data centers. The company is scaling up North Carolina manufacturing as part of the deal. For Corning, more associated with Gorilla Glass, this pushed it into the spotlight as a backbone supplier for AI’s physical expansion. Reuters
Peers have been fueling the narrative as well. Just last week, Ciena bumped up its full-year sales outlook, citing AI demand. Lumentum grabbed headlines after Reuters said Nvidia had a $2 billion investment lined up for the optical-products company. TradingView
The trade remains volatile. Last month, Reuters highlighted that some investors were sounding the alarm on stretched valuations for AI-linked infrastructure stocks. Michael Reynolds, vice president of investment strategy at Glenmede, put it bluntly: “Everyone needs to exercise some caution.” Corning’s slot at OFC 2026 in Los Angeles, set for March 15-19, is shaping up as the sector’s next big test. Reuters
