Shares of Corning (GLW +15.58%) jumped on Tuesday after the glass maker struck a blockbuster $6 billion deal with Meta Platforms (META +0.09%).
By the close of trading, Corning's stock price was up more than 15%.
Image source: Getty Images.
Accelerating the AI revolution
Under the terms of the deal, Corning will supply Meta with its most advanced optical fiber, cable, and connectivity products. The two companies will work together to build AI data centers faster, as Meta races to keep pace with its rivals.
NYSE: GLW
Key Data Points
To satisfy the booming, AI-driven demand for its products, Corning plans to expand its manufacturing operations in North Carolina. Meta will serve as the anchor client for a major capacity buildout at Corning's optical cable facility in Hickory. Once construction is complete, the plant will be the largest of its kind, according to Corning CEO Wendell Weeks.
"Building the most advanced data centers in the U.S. requires world-class partners and American manufacturing," Meta executive Joel Kaplan said in a press release. "We're proud to partner with Corning -- a company with deep expertise in optical connectivity and commitment to domestic manufacturing -- for the high-performance fiber optic cables our AI infrastructure needs."
Business is booming
The 175-year-old materials science leader is enjoying soaring sales of its AI-focused solutions. Corning's optical communications enterprise revenue leaped 58% year over year in the third quarter, fueled by companies' strong interest in its new generative AI products.
