May 6 (Reuters) - Corning and Nvidia said on Wednesday they would partner to expand U.S. production of optical connectivity products used in artificial intelligence data centers.
The specialty glass maker also raised its long-term sales targets on surging demand for AI infrastructure. Its shares rose more than 19% in early trading.
The deal shows how the AI boom is lifting demand beyond chips, benefiting suppliers such as Corning that make the fiber-optic equipment needed to move data between thousands of processors in large data centers.
• The specialty glass and fiber-optics maker said it would increase U.S.-based optical connectivity manufacturing capacity tenfold and expand domestic fiber production capacity by more than 50%.
• The expansion, expected to create more than 3,000 jobs, includes three new advanced manufacturing facilities in North Carolina and Texas.
• For Corning, the partnership strengthens one of its fastest-growing businesses at a time when weaker demand in non-optical segments, including specialty glass for consumer electronics, has weighed on its outlook.
• Separately, Corning said it expects to reach a $20 billion annualized sales run rate by the end of this year.
• The company now aims for a $30 billion annualized run rate by the end of 2028 under its internal plan, and $40 billion by the end of 2030.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Devika Syamnath)
