Corning stock jumped more than 7% Tuesday after the company announced a multibillion-dollar agreement to supply Verizon Communications with optical fiber and connectivity products through 2032. The deal extends a long-running partnership as Corning shifts its business toward AI data center infrastructure, following a similar warrant-based investment from Nvidia.
Corning stock rose more than 7% to 165.70 in morning trading Tuesday after the optical communications supplier announced a multibillion-dollar agreement with longtime customer Verizon Communications. Verizon stock climbed nearly 1% to 50.51 on the news.
Under the deal, Verizon will buy optical fiber and connectivity products from Corning from 2027 to 2032 for its landline broadband network. Verizon is also building a new long-distance backbone network for cloud computing companies.
Corning stock has advanced 70% in 2026, though shares have retreated from a 52-week high of 271.78 set on June 30.
Corning pivots toward AI infrastructure
Corning was long known for its flat-panel display business and Gorilla Glass used in smartphones. The company has since pivoted to become a supplier of fiber, cables, connectors and networking components that link AI computer servers inside and between data centers.
Nvidia recently agreed to invest up to $3.2 billion in Corning under a warrant deal, and Corning plans to use the capital to expand production capacity for AI data centers. In early June, Corning signed an AI infrastructure deal with Amazon.com. It signed a similar agreement with Meta Platforms in January.
IBD ratings on Corning stock
Corning stock holds an IBD Composite Rating of 66 out of a best-possible 99, according to IBD Stock Checkup. The best growth stocks carry a Composite Rating of 90 or better.
The stock also has a lowly Accumulation/Distribution Rating of E, a grade on an A+ to E scale that measures institutional buying and selling over the past 13 weeks of trading. IBD says the current rating indicates more funds are buying than selling.
Source: Investor's Business Daily
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