--- title: "NVIDIA doubles down on the optical communication field! Invests $500 million to acquire Corning stock options" type: "News" locale: "en" url: "https://longbridge.com/en/news/285384609.md" description: "NVIDIA has acquired a $500 million option to purchase shares in fiber optic cable manufacturer Corning, aiming to expand cooperation in AI infrastructure. In this transaction, NVIDIA will acquire up to 3 million shares at $0.0001 per share and has the right to purchase 15 million shares at an exercise price of $180. Corning will increase its production capacity to support the fiber optic demand of AI data centers, with an expected creation of 3,000 new jobs in the United States" datetime: "2026-05-06T13:10:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285384609.md) - [en](https://longbridge.com/en/news/285384609.md) - [zh-HK](https://longbridge.com/zh-HK/news/285384609.md) --- # NVIDIA doubles down on the optical communication field! Invests $500 million to acquire Corning stock options According to the Zhitong Finance APP, NVIDIA (NVDA.US) has acquired stock options worth $500 million from fiber optic cable manufacturer Corning (GLW.US), which is part of a broader partnership aimed at expanding AI infrastructure between the two companies. According to a regulatory filing on Wednesday, NVIDIA is acquiring up to 3 million shares at a price of $0.0001 per share in this transaction, and has the right to purchase up to 15 million shares at an exercise price of $180. As part of the strategic partnership between the two companies, Corning will enhance its production capacity to supply the fiber optics needed for AI-centric data centers when deploying NVIDIA chips. To drive growth across the industry, NVIDIA has secured billions of dollars in deals within the AI ecosystem, investing in a variety of companies ranging from AI model developers like OpenAI to other chip manufacturers like Marvell Technology. Previously, NVIDIA had also invested in optical communications leader Lumentum (LITE.US). In a statement regarding the partnership with Corning, NVIDIA CEO Jensen Huang emphasized how this effort will benefit the U.S. economy. Huang stated that the AI boom presents an opportunity to "revitalize American manufacturing and supply chains," and he maintains a close relationship with U.S. President Trump. Corning has announced that its production expansion plans include the construction of three new factories in North Carolina and Texas. The company expects these projects to create over 3,000 new jobs in the U.S. ## Citigroup and Oppenheimer Both Bullish on Corning As a key player in the U.S. optical communications sector, Corning received bullish ratings from Wall Street analysts in March, highlighting the company's agreements with Meta (META.US), Microsoft (MSFT.US), and Lumen Technologies, which underscore its opportunities in the optical field and strong demand for its products. Citigroup analyst Asiya Merchant stated in an investor report: "Corning's recent agreement with Meta, along with potential similar agreements with other hyperscale cloud providers in the future, reinforces our view—that each accelerator's value in connectivity is approximately $500 to $1,000, with room for upside as CPO technology is deployed. We believe that the collaboration with Microsoft on hollow-core fiber and the extended supply agreement with Lumen highlight Corning's favorable position—its product demand remains very strong, as customers are demonstrating this through clear commitments and investments in Corning's capacity expansion plans." **Citigroup maintains a "Buy" rating on Corning with a target price of $170.** Meanwhile, **Oppenheimer also reiterated its "Outperform" rating on Corning.** Oppenheimer analyst Martin Yang stated in the report: "Corning is successfully positioning itself as a key infrastructure provider in the construction of generative AI data centers through deep integration with ecosystem leaders such as NVIDIA, Broadcom, Meta, and Microsoft." An important valuation driver is the transformation towards Co-Packaged Optics (CPO) and scalable data center solutions. The company's management reiterated that by 2030, this transformation is expected to expand the current enterprise business scale by 2 to 3 times. ## Growth Prospects for Optical Communication Business Are Promising The parameters of AI large models continue to expand at a rate of approximately 100 times every two years, and the boundaries of computing power are no longer solely dependent on the number of GPUs, but rather on the "veins" that connect these GPUs—the bandwidth and density of optical networks. As the first quarter earnings season of 2026 approaches, the market's spotlight is gradually shifting from AI computing power leaders like NVIDIA to the optical network companies that are paving the "information highway" for AI data centers. According to the latest research from TrendForce, the global market size for AI-specific optical transceiver modules is expected to leap from USD 16.5 billion in 2025 to USD 26 billion in 2026, with an annual growth rate exceeding 57%. The strong demand for 800G optical modules from North America's hyperscale data centers, combined with the accelerated mass production of 1.6T products, is collectively constructing an unprecedented "super cycle" for optical modules ### Related Stocks - [GLW.US](https://longbridge.com/en/quote/GLW.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research - [Nvidia Just Made A 175-Year-Old Glass Stock Look Like An AI Rocket](https://longbridge.com/en/news/285395436.md) - [Are Wall Street Analysts Predicting Corning Stock Will Climb or Sink?](https://longbridge.com/en/news/285334857.md) - [Corning spikes after Nvidia invests $500 million in the fiber-optics company](https://longbridge.com/en/news/285403406.md) - [BUZZ-Corning jumps after announcing partnership with Nvidia](https://longbridge.com/en/news/285373906.md) - [Nvidia just invested in the AI legal startup that's splashing Jude Law ads everywhere](https://longbridge.com/en/news/284697518.md)