Corning Inc. (NYSE: GLW) received a vote of confidence from Wall Street this week as UBS upgraded the stock to Buy from Neutral, citing stronger-than-expected growth opportunities tied to artificial intelligence.
Analyst Joshua Spector also lifted his price target on the glass and materials manufacturer to $84 from $65, implying roughly 25% upside from Friday’s closing price.
Shares of Corning, which have already surged 41% year-to-date, rose more than 1% in premarket following the announcement.
Fiber growth outpacing expectations
According to UBS, Corning is well-positioned to benefit from the accelerating buildout of AI data centers, where demand for fiber optic cables is rapidly expanding.
Spector highlighted that consensus estimates are underappreciating the full extent of Corning’s potential fiber content uplift as hyperscale cloud operators push forward with next-generation infrastructure.
“Data center builds are requiring between four to 16 times more fiber content,” Spector wrote in the note, emphasizing that this multiplier effect could become even more pronounced as advanced processors and new AI workloads drive higher connectivity needs.
UBS expects this trend to meaningfully outpace hyperscaler capital expenditure growth between 2027 and 2029, creating a sustained tailwind for Corning’s fiber business.
As the leading global producer of fiber optics, Corning has already secured contracts to connect data centers across varying distances.
UBS believes this positioning gives the company an edge in capturing demand from cloud service providers investing heavily in AI infrastructure.
Expanding beyond artificial intelligence
While AI-linked fiber demand is central to UBS’s bullish view, the bank also pointed to opportunities in several adjacent industries that could support Corning’s growth over the longer term.
In the US solar market, Corning has locked up approximately 80% of restarted capacity across polysilicon, wafers, and modules for the next five years.
Beyond renewable energy, Spector noted that Corning’s Specialty Materials, Life Sciences, and Automotive divisions continue to gain market share.
In automotive, the adoption of cold form glass is reshaping touchscreen panels, adding more Corning content per vehicle.
The company also sees potential in applying thinner glass for triple-pane house windows, which could deliver energy savings and create an additional avenue for growth.
Stock momentum and market outlook
Corning’s strong performance in 2025 reflects growing investor optimism around its exposure to secular growth themes, particularly artificial intelligence.
The stock has advanced 41% year-to-date, with the latest upgrade from UBS further reinforcing bullish sentiment.
UBS’s revised price target of $84 signals confidence that Corning’s multiple growth drivers – from AI-driven fiber demand to solar and automotive applications – could sustain momentum in the coming years.
Still, as with any company tied to evolving technology cycles, execution and broader market dynamics will remain key factors for investors to monitor.
For now, UBS argues that consensus projections have not fully captured the scope of Corning’s upside potential, especially as fiber density requirements continue to rise across AI data centers.
With leadership in fiber optics and growing opportunities in adjacent markets, Corning’s outlook appears more robust than previously expected, according to the bank’s analysis.
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