Corning surges 7.4% on $6B Meta AI data center deal
Multiyear agreement through 2030 accelerates US manufacturing expansion as AI infrastructure spending soars
Corning shares soared 7.4% to $101.99 on Tuesday after the specialty materials maker announced a multiyear agreement with Meta Platforms valued at up to $6 billion to supply fiber-optic cables for the social media giant's artificial intelligence data centers.
The deal, which extends through 2030, positions Corning as a critical supplier in Meta's ambitious AI infrastructure buildout. Corning will provide advanced optical fiber, cable, and connectivity solutions to support Meta's rapidly expanding data center network, which is being upgraded to handle the computational demands of generative AI workloads.
"This strategic partnership demonstrates the critical role our optical communications portfolio plays in enabling the AI revolution," said Corning executives in the announcement. The agreement represents approximately 10% of Corning's annual revenue, which reached $16.3 billion in 2025 according to the company's latest financial results.
The partnership will drive significant manufacturing expansion in North Carolina, where Corning plans to substantially increase capacity at its optical cable facility in Hickory. Meta will serve as an anchor customer for the expanded operation. Corning projects the expansion will create 15-20% more jobs in the state, sustaining a skilled workforce of over 5,000 employees.
Tuesday's rally extends Corning's strong momentum in 2025, driven by surging demand for its Optical Communications segment. The business unit generated $4.57 billion in core revenue during the first three quarters of 2025, growing 39% year-over-year. In the third quarter alone, enterprise sales within Optical Communications—which are closely tied to AI data center deployments—jumped 58% compared to the prior year.
The Meta deal arrives as hyperscale cloud providers accelerate AI infrastructure spending. Major technology companies are projected to invest more than $600 billion on capital expenditures in 2026, with approximately $450 billion allocated specifically to AI infrastructure. This represents 38% growth in hyperscale AI investment spending for the year.
Corning's management has emphasized that generative AI-enabled data centers require over ten times more optical fiber than conventional data center networks. The company's Gen AI fiber technology offers a 2-4x density boost, enabling more fibers to fit within the same conduit diameter—a crucial advantage for hyperscale facilities where space constraints are significant.
The broader fiber optic cable market is experiencing rapid growth alongside the AI buildout. The data center optical cable market is expected to expand from $7.93 billion in 2025 to $8.48 billion in 2026, with projections reaching $12.84 billion by 2032, according to industry forecasts. A single 72-GPU node—a common component in advanced AI infrastructure—requires 16 times more fiber than a traditional cloud switch rack, illustrating the profound impact of AI on fiber demand.
Analysts have been closely watching Corning's Optical Communications business as a key growth driver. The segment grew over 33% in the fourth quarter of 2025, outpacing the company's overall performance. Corning's stock has surged more than 170% over the past 12 months, reflecting investor enthusiasm for its AI infrastructure positioning.
The Meta agreement provides revenue visibility through 2030, supporting Corning's previously announced target to achieve 20% operating margins. The company achieved this milestone in the fourth quarter of 2025, a full year ahead of schedule. Full-year core earnings per share for 2025 reached $2.52, representing a 28.6% increase year-over-year.
Despite Tuesday's strong gains, Corning continues to trade with compelling valuation metrics relative to its growth trajectory. The forward price-to-earnings ratio stands at 30.96, compared to the trailing multiple of 59.81, suggesting analyst expectations for continued earnings expansion. The company's price-to-earnings-growth ratio of 0.63 indicates the stock may be undervalued relative to its projected growth rate.
Hyperscale cloud providers are expected to account for more than 60% of all data centers by 2030, according to market research, positioning Corning's optical communications business for sustained demand. The company's strategic partnerships with major technology customers, combined with its manufacturing expansion initiatives, provide competitive advantages in securing long-term supply agreements.