[Click eStock] "Relentless Demand"...Top Optical Communication Stock Picks

As demand for data center optical communication increases, the U.S.-based optical communications company Corning is drawing attention.

On July 8, Heecheol Shin, a researcher at iM Securities, stated, "Corning's first-quarter sales this year reached $4.14 billion, up 20.0% from the same period last year, while operating profit surged by 43.6% to $6.4 billion over the same period, driven by expanding demand for optical communication in artificial intelligence (AI) infrastructure."

He added, "In the enterprise optical communication sector, Corning signed a long-term contract worth $6 billion with Meta at the beginning of this year, followed by similar contracts with two additional hyperscalers. Last month, the company also secured another multibillion-dollar long-term contract with Amazon, confirming the continued growth in demand for data center optical solutions." He further noted, "Even the general-purpose optical solutions segment, which had been relatively sluggish, is showing signs of improvement."

In May, a long-term partnership with Nvidia was announced. Researcher Shin said, "Through cooperation with Nvidia, Corning plans to build three new manufacturing facilities in North Carolina and Texas. As a result, Corning's domestic production capacity for optical communication products will increase by approximately tenfold, and its optical fiber production capacity will expand by more than 50%."

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