Corning Incorporated saw its stock rise 1.8% to $124.40 in premarket activity Monday, extending a rally that propelled shares to a record closing price of $122.16 late last week. The surge reflects investor enthusiasm for the company's role as a critical supplier to data centers amid the artificial intelligence infrastructure boom.
Meta Deal and Financial Outlook
The momentum follows a recently announced long-term partnership with Meta Platforms, valued at up to $6 billion, to provide optical fiber and connectivity solutions for U.S. data centers. Corning reported fourth-quarter 2025 core sales of $4.41 billion and issued first-quarter guidance projecting core sales between $4.2 billion and $4.3 billion.
Management highlighted expectations for accelerating year-over-year growth, with the data center segment becoming an increasingly significant driver alongside the company's established specialty glass businesses for consumer electronics.
Infrastructure Shift and Market Position
The rapid expansion of AI is accelerating a shift in data center infrastructure toward fiber optics, which handle data traffic using light rather than electricity over copper. This transition positions Corning favorably as a key "picks-and-shovels" provider. The company is reportedly exploring additional partnerships and advanced technologies, such as co-packaged optics, to further capitalize on this trend.
Despite the positive sentiment, analysts note the stock's sharp ascent introduces potential for near-term volatility, including profit-taking or any shifts in capital expenditure plans from major technology customers. Corning is scheduled to present at an industry conference later this month, where investors will seek further details on the rollout of the Meta agreement and broader demand trends.
