Corning

GLW

Market cap $136B

Corning Inc (NYSE:GLW) stock is down 7.8% at $172.92 this afternoon, part of its larger drawdown from its June 30 record peak of $271.38.

Corning, Viavi and Ooma have been highlighted in this Industry Outlook article.

Increased fiber densification, cloud focus and accelerated pace of 5G deployment should help the Zacks Communication - Components industry thrive despite short-term headwinds. GLW, VIAV and OOMA are well-positioned to make the most of the demand for seamless connectivity solutions.

However fast a GPU is, however much computing power a cluster can deliver, there are numerous bottlenecks that hinder AI performance. A single GPU may be fast, but the system only runs as fast as its connections, and there are exponentially more connections as you move up the chain, each with more networking, power, and cooling requirements.

Nvidia (NASDAQ:NVDA | NVDA Price Prediction), along with the broader semi scene, is bouncing back again.

Corning is rated a buy after a 30% drawdown, with technicals and fundamentals supporting a rebound opportunity. GLW's Q1 saw 18% core sales growth and 30% core EPS growth, led by Optical Communications and new Solar segment momentum. Major long-term deals with NVIDIA and Amazon, plus strong AI-driven demand, underpin robust EPS growth and premium valuation multiples.

Stocks were searching for direction Friday ahead of a busy week that includes inflation data and the kickoff of earnings season for the biggest banks in the United States. Several artificial-intelligence stocks traded lower ahead of the U.S. trading debut of SK Hynix.

There's been market volatility lately, especially within the technology sector. The AI trade is being pressured, with some stocks losing 25% or more.

AI valuation worries are shifting focus to dividend growth. DELL joins four stocks highlighted for earnings growth, rising sales and steady payouts.

The AI trade mounts a comeback as investors get over the worst of their fears about a flare-up in tensions between the U.S. and Iran.