8 Best Electronic Stocks To Buy According to Hedge Funds

6. Corning Inc. (NYSE:GLW)

Market Cap as of October 22: $40.43 billion

Number of Hedge Fund Holders: 35

Corning Inc. (NYSE:GLW) is an American multinational technology company that specializes in specialty glass, ceramics, and related materials and technologies, including advanced optics primarily for industrial and scientific applications. It operates in various segments, including display technologies, optical communications, life sciences, and environmental technologies, with products used in smartphone screens, fiber-optic cables, laboratory equipment, and emission control systems.

Its optical products have seen a surge in demand due to increased investments in AI data centers. The company also supplies glass for popular smartphone brands, which are becoming AI powerhouses. This has driven over 40% growth in the optical business in Q2 compared to the previous year, despite a soft smartphone market. Corning Inc.’s (NYSE:GLW) Optical glass fiber and related products make up 34% of the total company sales, accounting for over 50% of its targeted sales growth through 2027.

The company recently partnered with Lumen to reserve 10% of Corning Inc.’s (NYSE:GLW) global fiber capacity for AI data center interconnections. Its new GenAI fiber and cable system will allow Lumen to significantly increase fiber capacity in their existing infrastructure. As of Q2 2024, it generated $3.60 billion in revenue, up 3.50% from a year-ago period.

In Optical Communications, sales surged 20% sequentially in the second quarter, marking a return to growth. Enterprise network sales soared 42%, driven by AI-related solutions. Although carrier sales declined 10%, they showed sequential growth as customers adjusted their inventory. For display technologies, sales rose 16% due to increased panel maker utilization.

It’s well-positioned for growth due to its diverse product portfolio and strong market presence. It is a promising investment with a strong foundation for future success.

O’keefe Stevens Advisory stated the following regarding Corning Incorporated (NYSE:GLW) in its Q2 2024 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.”