By Keerthi Ramesh
Corning Inc.’s stock surged Tuesday after the company announced a multiyear supply agreement with Meta Platforms that could generate up to $6 billion in revenue by the end of the decade, highlighting the growing demand for fiber-optic infrastructure needed to power artificial intelligence (AI) data centers.
The specialty glass and optical communications maker said it will provide Meta with advanced fiber, cable and connectivity solutions for its expanding network of U.S. data centers. Investors welcomed the news, sending Corning shares sharply higher and lifting the stock to its strongest level in several years.
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The agreement reflects an intensifying push by major technology companies to secure high-speed data transmission systems capable of handling massive AI workloads. Fiber-optic connectivity has become a critical component of modern data centers, enabling faster communication between servers that support generative AI, machine learning and other data-heavy applications.
Under the deal, Corning plans to expand manufacturing capacity at its North Carolina operations, including a significant investment at its optical cable facility in Hickory. Meta will serve as the anchor customer for the site, helping justify the expansion. Corning said the agreement is expected to increase employment at its North Carolina facilities by roughly 15 to 20 percent, supporting thousands of manufacturing jobs tied to optical fiber and cable production.
“This long-term partnership reflects the strength of Corning’s optical communications business and our ability to scale manufacturing in the United States,” Chairman and Chief Executive Officer Wendell P. Weeks said in a statement.
Meta officials said the agreement supports the company’s goal of building reliable, domestically sourced infrastructure for future AI growth. The financial commitment comes as Meta continues to spend aggressively on data center construction and computing power. While Corning’s stock jumped on the announcement, Meta shares traded modestly lower as investors weighed the company’s rising capital expenditures. Meta is scheduled to report earnings later this week, with analysts closely watching for updates on infrastructure spending and AI investment plans.
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Wall Street analysts responded positively to the Corning announcement. Several firms raised price targets or reiterated bullish ratings, pointing to the long-term revenue visibility the agreement provides. Mizuho Securities described the deal as a major validation of Corning’s position in the optical networking market.
The agreement also arrives as Corning projects improving performance in its optical communications segment following a period of softer demand from telecommunications customers. Industry analysts say the rapid buildout of AI data centers is helping offset those earlier declines.
As technology companies race to expand computing capacity, demand for high-bandwidth, low-latency connectivity is expected to remain strong. With decades of experience in optical materials and large-scale manufacturing, Corning appears positioned to benefit from a data-driven economy increasingly shaped by artificial intelligence.