From Nvidia's 39% Gains to Corning's Hidden Opportunity: Why 2026 Could Define the Next Wave

The Semiconductor Boom Extends Beyond the Obvious Players

When we talk about artificial intelligence infrastructure, Nvidia typically dominates the conversation. The company’s stock climbed 39% throughout 2025, reflecting robust demand for its GPU technology powering data centers worldwide. However, here’s to another year where peripheral players may deliver even more compelling returns. Corning, a name most recognize for supplying glass to smartphones since 2007, experienced an 84% stock surge last year—outpacing Nvidia significantly. The driver? Demand for optical fiber cables that form the backbone of modern data centers.

The real story isn’t just about which company’s stock moves fastest, but rather understanding the broader technology infrastructure that supports AI development. Every computing cluster requires not just processors, but an intricate network of connections: memory systems, storage architecture, switching equipment, and thousands of miles of cables transmitting data between components.

Why Data Center Architecture is Shifting

Traditional data center infrastructure relied heavily on copper cabling to connect components within AI clusters. A single Nvidia Blackwell node, for instance, contains approximately 2 miles of copper interconnects linking 72 GPUs to supporting hardware. This system worked adequately, but limitations emerge as clusters scale dramatically. Optical fiber represents a fundamental upgrade—it enables faster data transmission, covers greater distances without signal degradation, and maintains signal integrity over extended runs.

Data center operators are recognizing these advantages and transitioning their infrastructure accordingly. Corning’s leadership publicly stated that the addressable market for optical fiber in data centers could expand two to three times from current levels, driven primarily by continued AI infrastructure investment.

Corning’s Financial Acceleration Tells the Story

Recent financial results underscore this trend’s significance. For the third quarter, Corning’s total core revenue reached $4.27 billion, representing 14% year-over-year growth. Within that, the optical communications division demonstrated even stronger momentum, with revenue climbing 33% to $1.65 billion. The enterprise-focused segment of optical communications proved most dynamic, expanding by 58% thanks to data center demand.

These aren’t modest gains—they reflect structural market shifts. On the profit side, the optical communications segment generated $295 million in net income during Q3, growing 69% annually. This accelerating profitability indicates that strong demand is translating into pricing power and margin expansion.

Looking ahead to full-year 2025 results, analysts expect Corning to report approximately $16.3 billion in annual revenue, a 13% increase from 2024. For perspective, 2024 growth stood at only 7%, indicating a meaningful acceleration in business momentum.

Valuation Context and Market Opportunity

From a valuation standpoint, Corning trades at a 36.9 price-to-earnings ratio based on recent trailing twelve-month earnings of $2.38 per share. This positions the stock as significantly more affordable than other semiconductor equipment suppliers. Advanced Micro Devices, Broadcom, and Nvidia trade at P/E ratios of 56.3, 50.3, and 46.7 respectively, making Corning appear more attractively priced despite its superior growth trajectory.

The runway for continued expansion appears substantial. Industry estimates suggest data center infrastructure spending could reach $4 trillion annually by 2030 as operators build out AI capabilities. Major technology companies have already deployed massive clusters featuring 100,000+ GPUs, with even larger deployments under construction. Each of these expansions requires substantial quantities of advanced cabling and connectivity solutions.

Positioning for 2026 and Beyond

The convergence of three factors creates an interesting backdrop: accelerating AI adoption continues driving data center expansion, optical fiber adoption represents a multi-year transition from incumbent copper technology, and Corning maintains a dominant position supplying these critical components. The company’s ability to convert this demand into profitable growth appears evident from recent earnings performance.

Here’s to another year where understanding the full technology stack—rather than focusing solely on headline-grabbing chip designers—may unlock meaningful investment opportunities. Companies enabling the infrastructure supporting AI deserve consideration alongside the more obvious plays in this transformational shift.