Corning Incorporated (NYSE:GLW) is one of the top 10 Co-Packaged Optics Stocks to buy in 2026. It is benefiting from the AI data center boom, and its push into photonics could provide another growth driver. On October 12, the company joined Lumentum and Astera Labs to demonstrate optical connectivity for AI rack-scale systems at the 2026 Open Compute Project Global Summit. The demonstration focused on PCIe connectivity over optics, highlighting the industry’s push to move optical technology closer to computing hardware.
Earlier, Corning partnered with Nvidia to expand US manufacturing capacity, including a planned tenfold increase in optical connectivity capacity. In my view, these developments show that the company is positioning itself to benefit from both current AI infrastructure demand and the next phase of optical networking. GLW is capitalizing on AI infrastructure demand, but where can investors find other AI stocks that offer an even better growth rate? Fortunately, GLW ranks at 10th in our Top 10 Co-Packaged Optics (CPO) Stocks to Buy in 2026, which means there are 9 other CPO stocks with an even better growth rate!
Why I Think Corning Deserves a Place on the List
Corning’s biggest opportunity is to sell more optical components inside AI systems, not just more fiber-optic cables. During its July earnings call, CEO Wendell Weeks said the company had not traditionally supplied components inside these systems. CPO could change that. Corning already has a growing AI network business, with Optical Communications sales rising 32% year-over-year to $2.07 billion in Q2 2026. Management also said it sees a potential $10 billion revenue opportunity by 2030 from a new photonics platform for components inside equipment. It stressed that the timing and the degree of adoption are uncertain, and it hasn’t given a photonics revenue outlook for the next year. In my view, Corning’s growing optical networking business gives it an existing growth engine, while CPO could provide an additional source of growth as AI systems become more demanding. CPO could open a new growth path for the company, but growth potential is only part of the investment picture. Explore 10 stocks with low debt and strong free cash flow.
Corning’s Growth Potential Must Justify Its Premium
Corning trades well above its historical average, and its growth outlook will need to justify that premium. The forward non-GAAP P/E of 44.81x is about 84% above its 5-year average of 24.31x, while the forward price-to-sales ratio of 6.57x is more than double its historical average of 3.14x. Earnings growth could help support these multiples. Analysts expect EPS to grow 30.41% in December 2026 and 33.02% in December 2027. However, slower AI spending or delayed CPO adoption could pressure the stock. In my view, Corning’s existing AI networking growth and long-term CPO opportunity make the stock worth buying for investors willing to accept its premium valuation and execution risks.
Hedge funds have been piling in. Funds holding GLW rose from 91 in Q1 to 99 in Q2. The value of their stakes rose much more sharply, going from $4 billion to $5.1 billion.
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