Meta's Hyperion AI data center campus in Louisiana is driving massive demand for optical fiber, estimated at 8 million miles to support its 5-gigawatt expansion. This shift from copper to fiber is due to copper's limitations at high speeds, with NVIDIA and others pushing for co-packaged optics in AI clusters. Fiber suppliers such as Corning, Lumentum, Coherent, and Applied Optoelectronics are benefiting from this surge, posting strong revenue growth and contracts, including Corning's $6 billion deal with Meta. Meanwhile, Broadcom leads in AI semiconductor chips but faces different market dynamics. The buildout highlights a profitable capital cycle in AI infrastructure beyond just chipmakers.
Optics stocks like Lumentum, Corning, and AXT fell sharply due to a risk-off sentiment triggered by lower-than-expected AI revenue figures from Anthropic and OpenAI, alongside rising long-term Treasury yields hitting multi-year highs. Despite strong ...
Corning CEO Wendell Weeks stated on Mad Money that tariffs have a negligible effect on the company because 90% of its U.S. revenue comes from products made in the U.S., and only 1% of U.S. sales are from Chinese factories. This strategy of locating p...
