12 Best Artificial Intelligence Stocks Under $50 According to Analysts

7. Corning Inc. (NYSE:GLW)

Share Price as of January 5: $47.50

Average Upside Potential as of January 5: 15.79%

Number of Hedge Fund Holders: 46

Corning Inc. (NYSE:GLW) is a leader in materials science and specializes in advanced optics, ceramics, and specialty glass. It enables the AI revolution through its innovative solutions, which include high-performance fiber optic cables for high-speed data transmission and advanced materials for AI-powered devices.

The company is growing due to the demand for its optical connectivity solutions, driven by the expansion of the AI market. This is evident in the 55% year-over-year growth in the company’s Enterprise segment, a direct consequence of the rising need for high-speed data transmission and seamless interconnectivity within AI-powered data centers.

Its optical connectivity solutions, such as the cutting-edge GenAI fiber and cable system, are instrumental in facilitating the high-bandwidth communication required for AI applications. The partnership with Lumen Technologies, which involves reserving 10% of Corning Inc.’s (NYSE:GLW) global fiber capacity for the next 2 years, highlights its approach to capturing the AI market. By aligning with key players, the company is positioning itself to grow within the AI-driven data center landscape.

O’keefe Stevens Advisory highlighted the company’s strong Q2 2024 driven by AI demand, suggesting its “springboard” plan could unlock significant growth and margin expansion. It stated the following regarding Corning Inc. (NYSE:GLW) in its second-quarter investor letter:

“Corning Incorporated (NYSE:GLW), another long-time holding, announced Q2 results would come in better than anticipated due to outperformance in their optical connectivity products used for Generative AI. Corning has long been a disappointing investment; with leading-edge technology, it consistently underperforms expectations. Their “springboard” plan, which revolves around $3 billion of excess capacity, seems to be the first sign in a long time that they are ready for a surge in growth. Management has frequently discussed the potential for operating leverage in nearly every conference call, anticipating a return to normal business conditions. Margins should expand over the coming quarters, driving EPS growth. The $3B in incremental sales could be worth in excess of $900m in EBITDA.”