Corning Inc (GLW)

Getting chips to talk to each other has been driving demand for products. Huge pricing power. A lot of that might be already baked into the share price, sold off sharply. Scale back your position.

They provide cables that connects chips with racks inside data centres. They are essential to AI and growing well. Well-run. But the valuations in the AI space are extremely high with Corning at 60x PE. He's cautious this space. You want to own the picks-and-shovels companies, but ultimately we need to see real economic impacts of AI to justify all this spending.

It is similar to Arista with Internet and Ethernet connectivity. It is part of the expanding role of optical fiber due to the limitations of copper. It is difficult to break into optical. Bell buys their optical stuff from Corning. He has a 12 month price target of $265 and you could buy in thirds, adding it as it goes down.

Super-well positioned to benefit from the super-strong demand for its high-tech optical fibre. These new data centres require up to 10x more fibre than traditionally. Hyperscalers are signing deals with GLW to lock down supply for years to come. Robust plans in the pipeline. Not cheap at ~60x PE.

Also has a solar platform, which is helping to build out the domestic US supply chain.

It's had a parabolic move and needs to fall more than today's 7% for him to buy it.

Don't confuse a good company with a good investment. Likes it, but look at the inflection on the chart. You want to buy when it's dead money, and then wait for an inflection.

Don't chase a parabolic chart. You need to trim, not allocate new money (or you're asking for trouble).

Fibre optics. Won massive contract with AAPL, which adds growth. Don't buy up here. Enter ~$140-145, add more ~$125-130.

The estimates for the next two years are too low. Their glass will take over data centres.

All stocks that moved up big already are vulnerable in this market. It could go down further than today. He would pick up more after it sells off more.

Big play now is data centre expansion through fibre. Look at that chart -- when stocks gap up, it's the trend that's in vogue. At some point you're part of a Ponzi scheme, and you need to get out with your profit.

Exceptionally robust growth projections and remarkably favorable stock momentum characterize the current outlook. The strength of Corning's AI-driven optical product sales continues to enhance both immediate and future revenue prospects under its Project Springboard initiative. Management increased its fourth quarter 2026 Springboard sales run-rate expansion goal by $500 million, bringing it to $6.5 billion. While fourth quarter optical sales came in below analyst expectations, the enterprise optical segment achieved 30% growth, aligning with forecasts. Considering the ongoing build-out of AI infrastructure, maintaining 30% growth in enterprise optical appears feasible. When combined with increasing contributions from solar and silicon wafer production, Corning could potentially deliver sales growth in the mid-to-high teens range, even with flat panel display sales remaining steady in 2026. Trading at 42 times earnings, the valuation isn't inexpensive, yet they believe it remains an attractive purchase. Unlock Premium - Try 5i Free

He bought more because of their $6 billion deal with Meta.

It reports Wednesday. It's busy replacing copper with fiber. Prospects are excellent.

Is up 56% in Q3, and one of the top S&P stocks in Q3. Their Apple partnership is huge, but so is their fibre-optic glass used to move information in data centres which he expects to replace the copper used in data centres.