Corning’s Stock Jumps 9% After Signing Multibillion Dollar Optical Fibre Deal With Amazon

Amazon has signed a multibillion-dollar agreement with Corning Incorporated, for optical fibre to power and connect its data centres in the US.

The investment will create 1,000 new jobs at Corning's manufacturing facilities in North Carolina, the companies announced in a press release.

The move is also expected to support hundreds of additional construction jobs for the expansion of Corning's facilities.

Shares of Corning jumped 9% on Monday, as per CNBC. Amazon stock rose about 1%.

Corning, which makes advanced glass and fibre optic technology, will work with Amazon on a new training program. The initiative will expand Corning's and Catawba Valley Community College's Fiber Optic Technician Training Program, which trains students for careers in the sector.

The initiatives will help strengthen the domestic manufacturing base and supply chains while expanding commercial and residential fibre densification efforts.

Last year, Amazon had committed $10 billion in North Carolina to expand cloud computing infrastructure. It has invested over $20 billion in the state since 2010, creating over 26,000 jobs across sectors.

Amazon Web Services CEO Matt Garman stated in a release, “These long-term investments create long-term careers and real opportunity in the communities where we operate."

Corning's fibre optic cable and networking solutions are becoming crucial to AI infrastructure as they enable fast connections between data centres and the chips they house.

While the company is best known for making the display glass for Apple's iPhones, optical communications remains Corning's largest and fastest-growing business. It has provided millions of miles of cables to connect racks together in AI data centres.

The demand for artificial intelligence is reinvigorating Corning as AI labs and hyperscalers are rushing to find sources to meet their computer needs.

Corning's stock has more than doubled so far this year. The shares are almost six times higher since the end of 2023.

Big names such as Nvidia and Meta have also invested in Corning recently. Meta said in January that it would spend up to $6 billion to help the company build its optical cable plant in Hickory, North Carolina.

Nvidia has promised to invest up to $3.2 billion as part of a deal that involves the construction of three new advanced manufacturing plants devoted entirely  to the Jensen Huang-led firm.