We recently published a list of Top 10 AI News and Analyst Ratings You Should Not Miss. Since Corning Inc (NYSE:GLW) ranks 10th on the list, it deserves a deeper look.
Investors are on tenterhooks as Jensen Huang’s AI giant is about to release earnings. Gene Munster, Deepwater Asset Management managing partner, said in an interview with CNBC that the broader market can see a pullback if Blackwell-related delays show a wider impact on the AI chips market. The analyst predicted that it’s going to be a “difficult week” for major tech companies.
However, Munster is highly bullish on the broader AI space for the long term.
“I still think that we are in an early innings of a 3 to 5 year tech bull market that is powered by AI, and I think all these big tech companies are going to do well over the next couple of years,” Munster said.
The analyst said that Jensen Huang has indicated in the previous quarters that the demand for AI chips is more than what his company could manage in the short term, and if he reiterates this in the upcoming results, it would give a strong signal to investors about the AI potential.
“There is a lot of awareness about AI but I think the significance of what it’s gonna do is still underappreciated by the market.”
In this article, we compiled the most important latest AI news and analyst ratings around major AI tech stocks. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Corning Inc (NYSE:GLW)
Number of Hedge Fund Investors: 35
Corning Inc (NYSE:GLW) makes high-tech glass for flat panel displays like TVs and smartphones, optical fibers for telecommunications, and specialized materials for electronics, defense, and environmental applications.
Mizuho recently upgraded Corning (NYSE:GLW) to Outperform from Neutral, citing the recent drop in the stock price despite the company’s strong growth outlook. The firm’s analyst noted that Corning’s Optical glass fiber and related products represent Corning’s largest segment, making up 34% of sales and accounting for over 50% of the company’s targeted sales growth through 2027.
But what makes Corning Inc (NYSE:GLW) a promising AI stock? The company says the new data center boom has created a demand for fibers that would have fiber connections ten times more than traditional data centers. This would create strong line-feet demand for Corning’s optical fiber and fiber-optic hardware and connectors.
Corning Inc (NYSE:GLW) recently signed an agreement with Lumen (LUMN) to reserve 10% of its global fiber capacity over the next two years to interconnect artificial intelligence-enabled data centers.
“This marks the first outside-plant deployment of Corning’s new gen-AI fiber and cable system, which will enable Lumen to fit anywhere from two-to-four times the amount of fiber into their existing conduit,” said Corning CEO Wendell Weeks.
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.”
Overall, Corning Incorporated (NYSE:GLW) ranks 10th on Insider Monkey’s list titled Top 10 AI News and Analyst Ratings You Should Not Miss. While we acknowledge the potential of GLW, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GLW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
