- Corning stock popped 17% after announcing a new partnership with Nvidia.
- The multiyear agreement will expand optics connectivity for AI infrastructure in the US.
- The partnership will create three new manufacturing plants and 3,000 US jobs.
The move: Corning stock surged after announcing a AI optics infrastructure deal with Nvidia.
The optics company's stock popped as much as 17% to $190.
The stock has gained 117% year to date, with other AI deals with Big Tech players fueling the rise.
Nvidia shares rose 2%.
The chart:
Why: Corning and Nvidia are partnering to expand optical connectivity capacity in the US to advance AI infrastructure.
"Corning will expand U.S. optical connectivity capacity 10x, build three new manufacturing plants, and create more than 3,000 high-paying American jobs," the company said in the press release.
The agreement will expand Corning's US fiber production capacity by more than 50% as AI-driven demand grows and ties the company to the AI chipmaker in a multi-year deal.
Corning announced a longterm agreement with Meta earlier in the year.
Why it matters: The Corning partnership is part of Nvidia's efforts to invest more in US AI infrastructure.
Integrating optics into AI infrastructure provides the high-bandwidth and low-latency the tech needs while limiting data loss across large networks, according to Cisco.
Optics tech is being used to replace copper within AI systems, reducing reliance on the China-dominated copper market.
"AI is driving the largest infrastructure buildout of our time — and a once-in-a-generation opportunity to reinvigorate American manufacturing and supply chains," Nvidia CEO Jensen Huang said.
"Together with Corning, we are inventing the future of computing with advanced optical technologies — building the foundation for AI infrastructure where intelligence moves at the speed of light while advancing the proud tradition of Made in America," the Nvidia CEO added.
The chipmaker has doubled down on US investments in Trump's second term. From chip embargoes to smuggling arrests, US-China relations has emerged as a key hurdle in the AI race for tech players.
The Nvidia and Corning partnership helps protect the chipmaker's dominate position while contributing to the US economy and AI market in a way that appeals to the White House's position.
The post Corning stock rockets 17% on major AI manufacturing deal with Nvidia appeared first on Business Insider
