Corning (GLW) Stock Surges as UBS Lifts Price Target to $160 on AI-Driven Fiber Optic Demand

UBS has significantly increased its price target on Corning Inc. (NYSE: GLW) to $160 from $125, maintaining a Buy rating as artificial intelligence infrastructure spending accelerates. The upgraded outlook reflects a sharp rise in capital expenditures from major data center hyperscalers, positioning Corning as a key beneficiary of the AI boom.

The surge in AI adoption is driving unprecedented data creation, and that data must be transmitted through high-speed fiber optic cables. As a global leader in specialty glass and optical communications, Corning stands to gain from expanding AI data center infrastructure. Tech giants including Meta Platforms, Microsoft, and Amazon have all announced aggressive increases in capital expenditures to support AI workloads, directly boosting demand for fiber solutions.

A major catalyst behind the bullish outlook is Corning’s recently announced $6 billion anchor agreement with Meta. This long-term deal provides upfront cash, predictable revenue streams, and valuable visibility into future demand. With secured contracts in place, Corning can confidently invest in expanding manufacturing capacity to meet growing orders from AI hyperscalers.

Amazon alone recently projected $200 billion in capital expenditures, about 33% above prior expectations. UBS now forecasts hyperscale spending growth to reach 68% year-over-year in 2026, highlighting the scale of the AI infrastructure buildout.

Another growth driver is the transition from “Scale Out” to “Scale Up” architectures in data centers. While fiber optics currently connect server racks, replacing copper wiring within racks with fiber could significantly expand Corning’s addressable market. Analysts estimate the “Scale Up” opportunity could be two to three times larger than the existing market, with elevated demand potentially lasting into the mid-2030s.

Despite its recent rally, GLW stock trades at a valuation discount relative to other high-growth optical peers. UBS applied a 33x forward P/E multiple to project its $160 target. With adjusted EPS expected to grow 30% annually through 2028, Corning is increasingly viewed as a high-growth AI infrastructure investment rather than a traditional glass manufacturer.