Corning and Nvidia announced on Wednesday they are teaming up. Their goal is to increase the production of optical connectivity products in the U.S., which are crucial for artificial intelligence data centers. Corning, known for its special glass, also raised its long-term sales goals because of the huge demand for AI infrastructure. Following the news, Corning’s shares jumped over 19% in early trading.
This partnership shows that the AI boom isn’t just about chips. It’s also boosting demand for suppliers like Corning, who make the fiber-optic equipment needed to quickly move data between thousands of processors in big data centers. Corning stated it will increase its U.S. manufacturing capacity for optical connectivity tenfold. They will also expand their domestic fiber production capacity by more than 50%.
This expansion will create over 3,000 new jobs and includes building three new advanced manufacturing facilities in North Carolina and Texas. For Corning, this partnership strengthens one of its fastest-growing businesses. This comes at a time when weaker demand in other areas, like specialty glass for consumer electronics, has impacted its financial outlook.
Separately, Corning expects to hit a $20 billion annualized sales rate by the end of this year. Under its internal plan, the company now aims for a $30 billion annualized sales rate by the end of 2028, and a massive $40 billion by the end of 2030.
