Amazon has entered into a multiyear, multibillion-dollar agreement with Corning to supply optical fiber, cable, and connectivity solutions for its U.S. data centers, marking another major win for the glass and fiber optics specialist amid the artificial intelligence boom. The deal, announced Monday, positions Corning as a key supplier for Amazon Web Services (AWS), further entrenching the company in the supply chains of major cloud providers.
The agreement is expected to create approximately 1,000 skilled jobs at Corning's North Carolina facilities and support hundreds more in construction, along with expanded fiber-optic training programs. AWS CEO Matt Garman emphasized the deal's role in building "long-term careers," highlighting the strategic importance of fiber infrastructure for AI workloads.
Corning's optical fiber products, which transmit data as light through thin glass strands, are critical for connecting servers, chips, and entire buildings within AI data centers, where even minor delays can significantly impact performance. This deal follows a similar agreement with Meta, announced in January, which could be worth up to $6 billion and underpins a new optical cable plant in Hickory, North Carolina. Nvidia also secured warrants for up to 18 million Corning shares in May, paying $500 million for the rights to buy stock at fixed prices, as part of a broader partnership to expand U.S. optical connectivity manufacturing by 10x and boost fiber production capacity by over 50%.
Despite these high-profile deals, Corning shares were indicated at $177.58 in premarket trading, nearly unchanged from the prior close. The stock has surged approximately 305% over the past 12 months, valuing the company at around $153 billion. This muted reaction suggests that investors may have already priced in these AI-driven wins, leaving little room for further upside without concrete execution.
Corning's first-quarter results showed strong momentum, with core sales rising 18% to $4.35 billion and core earnings per share climbing 30% to $0.70. Revenue from the Optical Communications segment jumped 36%, driven by hyperscale customer demand. The company also noted that two additional hyperscale customers have signed long-term contracts similar in size and duration to the Meta deal, though it did not disclose their names.
Looking ahead, Corning has raised its targets under the Springboard plan, aiming for a $20 billion annualized sales run rate by late 2026, with even higher internal goals for 2028 and 2030. Chief Financial Officer Ed Schlesinger told investors that the company will "share the risk" on investment through long-term customer agreements, a key point of focus as capital expenditures rise.
However, analysts caution that the stock's valuation leaves little margin for error. Morningstar senior equity analyst William Kerwin described Corning as a "key enabler" for hyperscale data centers but warned that the market is pricing the stock as if optical fiber constitutes the entire business. "The stock price looks like everything goes right," Kerwin said, noting that optical fiber still accounts for only 30% to 40% of total revenue, while slower-growing units in display glass, automotive, life sciences, and solar remain significant.
The bear case centers on execution risks: Corning must ramp up capacity to meet AI demand, stay within budget, and ensure major buyers continue spending, all while managing its diversified portfolio. The Amazon deal provides another proof point, but the real test will be converting these supply agreements into sustained production, sales, and cash flow while maintaining margins as customers help fund expansion.
