Semiconductor Enablers: Why Corning and Micron Are Undervalued AI Winners in 2026

The artificial intelligence (AI) revolution is no longer a distant promise but a present-day reality, reshaping industries and driving unprecedented demand for infrastructure. While the spotlight often shines on chipmakers like Nvidia and AMD, the true backbone of this transformation lies in the enablers-companies like Corning Inc. and Micron Technology-whose innovations in fiber optics and high-bandwidth memory (HBM) are quietly powering the AI era. As data centers expand and AI models grow more complex, these firms are positioned to outperform their peers, offering compelling value for investors who recognize their critical role in the ecosystem.

Corning: Fiber Optics as the Arteries of AI Infrastructure

Corning's Optical Communications segment has emerged as a linchpin for AI infrastructure, driven by the insatiable demand for high-speed connectivity in data centers. According to a report by Corning, the company has upgraded its high-confidence Springboard plan to add more than $4 billion in annualized sales by 2026, with an operating margin target of 20%. This growth is fueled by the 30% annual expansion of its Optical Communications segment, which serves enterprise and carrier networks, as new generative AI (Gen AI) products drive demand for inside data center connectivity.

By 2025, Corning's Optical segment is projected to grow by 39% year-on-year, reaching $6.5 billion in revenue, as enterprises prioritize fiber optics to handle the massive data throughput required for AI training and inference. This trajectory underscores Corning's strategic alignment with the AI infrastructure boom, where fiber optics are indispensable for low-latency, high-capacity data transmission.

Micron: HBM as the Memory Engine of AI Chips

While Corning addresses the connectivity layer, Micron Technology is solving the memory bottleneck in AI hardware. High-bandwidth memory (HBM), a critical component for advanced GPUs and AI accelerators, is witnessing explosive demand. In fiscal 2025, Micron's DRAM revenues surged 68.7% year-over-year to $8.98 billion, driven by the adoption of HBM3E and high-capacity DIMMs. Analysts predict HBM demand will nearly double from $18 billion in 2024 to $35 billion in 2025, with continued growth expected in 2026.

Micron is already preparing for the next phase of this revolution with HBM4, which promises industry-leading bandwidth and power efficiency. Early samples are in development, and the company has secured pricing agreements for most of its 2026 HBM3E supply, now serving six customers. This positions Micron as a key supplier to AI chipmakers like Nvidia and AMD, whose latest GPUs rely on HBM to deliver the performance required for large language models and other AI workloads.

Attractive Valuations: Undervalued Gems in a High-Multiple Sector

Despite their pivotal roles, both Corning and Micron trade at valuations that appear disconnected from their growth trajectories. Micron, for instance, has a forward P/E ratio of 10.95 and a PEG ratio of 0.38, suggesting it is significantly undervalued relative to its earnings growth according to financial data. In contrast, AMD's forward P/E of 54.68 and PEG of 2.02 indicate overvaluation, while Nvidia's forward P/E of 24 remains elevated despite its dominance in the data center market according to market analysis.

Corning's valuation is also compelling when compared to peers. While it trades at a P/E of 53.7x, higher than the 25.3x industry average for electronics firms, this metric pales in comparison to AMD's 2026 P/E of 40x and Nvidia's 30x according to investing analysis. Moreover, Corning's P/S ratio is more favorable than both Nvidia and AMD, reflecting a lower price-to-sales multiple for a company with robust revenue growth according to market research. These metrics highlight a stark disconnect: investors are paying a premium for high-growth semiconductors like AMD and Nvidia while overlooking the enablers that make their technologies possible.

The Case for Infrastructure-Driven Growth

The AI infrastructure boom is not a one-time event but a multi-year trend. As Jensen Huang, CEO of Nvidia, has noted, annual data center spending could reach $4 trillion by 2030. Corning and Micron are uniquely positioned to benefit from this shift. Corning's fiber optics are essential for interconnecting AI clusters, while Micron's HBM is a non-negotiable component for next-generation GPUs.

Yet, their valuations suggest skepticism about their long-term potential. This presents an opportunity for investors who recognize that the AI revolution is not just about chips but about the entire ecosystem that supports them. Corning's 20% operating margin target by 2026 and Micron's near-sold-out HBM3E supply for 2026 are clear indicators of their ability to scale and profit from this demand.

Conclusion

In the race to build the AI future, enablers like Corning and Micron are often overshadowed by the glitz of chipmakers. However, their roles as infrastructure providers-supplying the fiber optics and memory that underpin AI's exponential growth-make them indispensable. With revenue growth projections exceeding 30% annually and valuations that lag behind their peers, these companies represent a rare combination of strategic importance and undervaluation. For investors seeking exposure to the AI boom without paying the sky-high multiples of leading semiconductors, Corning and Micron offer a compelling case.