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Jim Cramer Explains Why To Hold Corning and Not Take Profits

Corning Incorporated (NYSE:GLW) is one of the stocks Jim Cramer talked about, along with the memory shortage. Cramer highlighted the company’s $6 billion deal with Meta, as he stated:

If you use your powers of observation, if you exercise some curiosity, you can find some very, very good investments. And that’s what happened to the Charitable Trust today when we struck gold with Corning, which rallied more than 15% on news of a gigantic contract from Meta for $6 billion in fiber optic cables… Now, today in our morning meeting… Jeff Marks and I told club members, please do not sell, even though Corning reports tomorrow morning. Now, I suspect I have to tell you that after this run, a more than 15% gain in one day, almost anything they report could be a letdown. It wouldn’t shock me if the stock could go down. But why not take profits? Two reasons. One, if Meta wants $6 billion in fiber optic cables, what will Microsoft want, or Tesla, or Google, or Amazon?

And two, the actual NVIDIA chips that predominate in the data center are chock-full of copper. What if one day Corning can figure out how to make fiber for the inside of the chip? Wouldn’t shock me. Data centers would almost immediately burn less hot, and therefore, need less electricity for climate control. But I digress… If I’d only focused on iPhone glass at that Corning plant, I would’ve missed out on something that’s given my Charitable Trust a huge gain. So follow your curiosity, drill down on what you see. Sometimes, there’s a terrific investment idea hiding in plain sight.

Stock market data showing an upward trajectory. Photo by Burak The Weekender on Pexels

Corning Incorporated (NYSE:GLW) develops optical fiber, cables, and related hardware for telecommunications, and produces glass substrates for displays used in TVs, computers, and mobile devices. Moreover, it supplies specialty materials, emission control products, and laboratory equipment.

While we acknowledge the risk and potential of GLW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GLW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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