Corning (GLW): A Strong Buy in a High-Growth Tech Sector?

Corning Inc. (GLW) has emerged as a standout performer in the technology sector in 2025, delivering a year-to-date (YTD) return of 75.9% as of December 29, 2025 according to Zacks.com. This outpaces the Technology Select Sector SPDR Fund (XLK), which has returned 24.7% over the same period according to Yahoo Finance, and the broader Computer & Technology sector's 27.4% average gain according to Yahoo Finance. Even in the past three months, GLW surged 20.5%, compared to the XLK's 11% rise according to Yahoo Finance. Such outperformance is driven by a confluence of factors: robust earnings growth, strategic positioning in high-speed optical communications, and expanding demand for AI infrastructure. However, investors must also weigh Corning's underperformance relative to its communication components peers, which have averaged 89.6% YTD returns according to NASDAQ.

YTD Outperformance and Earnings Momentum

Corning's YTD surge reflects its ability to capitalize on structural trends in technology. The company's Q3 2025 results underscore this momentum: core sales rose 14% year-over-year to $4.27 billion, while core earnings per share increased 24% to $0.67. The Optical Communications segment, a key growth engine, saw sales jump 33% year-over-year, fueled by demand for high-speed fiber in AI data centers and the adoption of Corning's Gen AI products. Enterprise data center sales within this segment grew a staggering 58% YoY according to Corning investor relations, highlighting the company's role in enabling the computational demands of generative AI.

This earnings strength has translated into positive revisions to analyst estimates. The Zacks Consensus Estimate for Corning's full-year 2025 earnings rose 1.9% over the past 90 days according to Finviz, reflecting improved sentiment. Analysts project Q4 2025 core sales of $4.35 billion and EPS in the range of $0.68 to $0.72 according to Yahoo Finance, with the company on track to achieve its Springboard operating margin target of 20% a year ahead of schedule according to Corning investor relations.

Strategic Partnerships and AI Demand

Corning's strategic partnerships are amplifying its exposure to the AI boom. A $2.5 billion agreement with Apple to produce all iPhone and Apple Watch cover glass at Corning's Kentucky facility ensures a steady revenue stream while aligning with Apple's premium product strategy. Meanwhile, collaborations with hyperscalers and infrastructure providers are deepening its footprint in data centers. For instance, Corning's SMF-28 Contour optical fiber is being deployed to optimize server rack space and reduce cable congestion in retrofitting existing data centers.

The company's partnership with Lumen Technologies enables interconnected data centers and long-haul connectivity, critical for hyperscalers expanding AI networks. Additionally, Corning's supply of optical components for Broadcom's Co-Packaged Optics infrastructure underscores its role in cutting-edge technologies that reduce power consumption and boost bandwidth for AI workloads. These partnerships position Corning to benefit from the multi-year AI infrastructure buildout, with Optical Communications segment revenue reaching $1.35 billion in Q1 2025, a 46% YoY increase according to Monexa AI.

Analyst Sentiment and Earnings Revisions

Despite supply constraints and timing issues according to Investing.com, Corning's earnings trajectory has attracted strong analyst support. As of late 2025, 11 analysts rate the stock as a "Buy," with three recently revising their earnings estimates upward according to Investing.com. The Zacks Consensus Estimate's 1.9% upward revision over 90 days according to Finviz reflects confidence in the company's ability to sustain growth. Moreover, Corning's Q3 2025 EPS of $0.67 exceeded Wall Street's forecast, reinforcing its credibility in navigating macroeconomic challenges.

Conclusion: A Strong Buy with Caveats

Corning's 75.9% YTD return and strategic alignment with AI-driven demand make it a compelling investment. Its Optical Communications segment is a clear winner in the race to power next-generation data centers, and its partnerships with tech giants like Apple and Broadcom provide a durable growth foundation. However, investors should note that Corning has underperformed its communication components peers, which have averaged 89.6% YTD returns according to NASDAQ. This gap may reflect sector-specific challenges or valuation disparities.

Nonetheless, the company's earnings momentum, expanding margins, and leadership in high-speed fiber solutions suggest it is well-positioned to outperform broader tech indices in the near term. For investors seeking exposure to the AI infrastructure boom, Corning offers a unique blend of sector outperformance and operational resilience.