A360
Key Takeaways✦ Atlas AI
01
Corning, Nvidia expand U.S. fiber optic production.
02
AI data centers drive demand for optical connectivity.
03
Corning raises sales targets to $40 billion by 2030.
Atlas AI
Corning and Nvidia said Wednesday they will partner to expand U.S. production of optical connectivity products used in artificial intelligence data centers, as demand grows for high-bandwidth infrastructure.
Corning said the collaboration is intended to increase its U.S.-based optical connectivity manufacturing capacity tenfold and expand domestic fiber production capacity by more than 50%.
The companies said the additional output is aimed at supporting the large volumes of data that move between thousands of processors inside large AI data centers. The partnership also highlights how AI-related spending is lisourcesing demand beyond semiconductors, benefiting suppliers of supporting infrastructure.
Corning said the expansion is expected to create more than 3,000 jobs and includes three new advanced manufacturing facilities in North Carolina and Texas.
Corning shares rose more than 19% in early trading following the announcement.
Updated targets
Corning also raised its long-term sales targets, citing surging demand for AI infrastructure.
The company said it expects to reach a $20 billion annualized sales run rate by the end of this year, and is targeting a $30 billion annualized run rate by the end of 2028 and $40 billion by the end of 2030.
The partnership bolsters Corning’s optical communications business—one of its fastest-growing segments—at a time when weaker demand in non-optical areas, including specialty glass for consumer electronics, has weighed on its outlook.
