Corning Incorporated
Information Technology · Electronic Components
Structural read: GLW is the closest pure-play public name on physical-layer optical interconnect for AI datacenters. Optical Communications was 36% of 2025 sales; management has guided enterprise/datacenter fiber growing 25%+ annually through 2027 on a tripled hyperscaler order book.
The other four segments are mature cash cows funding capex.
- Hyperscaler fiber ramp - Springboard plan targets +$3B annualized run-rate sales by end of 2026, optical leading
- Multi-year Lumen, Verizon, AT&T fiber contracts signed 2024-2025 backstop telco leg
- Gorilla Glass installed in every flagship Android + $AAPL iPhone (Ceramic Shield is co-developed)
- Display segment EBIT margins re-rated post-2023 yen hedge restructure (mid-20s%)
- Net debt manageable; dividend covered ~2x by FCF
- Datacenter optical TAM gets contested by $CIEN, $COHR, $FN on transceivers - GLW only owns the fiber/cable layer
- Display volumes structurally flat; price the wildcard
- Auto segment exposed to EV mix (gas-engine ceramic substrates fade)
- Heavy capex cycle to serve hyperscaler orders compresses near-term FCF
- Stock has already re-rated to ~25x forward EPS on the AI narrative; execution miss punished
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