NEW YORK – The charitable trust associated with the CNBC Investing Club with Jim Cramer purchased 220 shares of Corning Inc. on Tuesday, establishing a new position in the technology company. In a notice to subscribers, the club confirmed the acquisition was made at approximately $85 per share, with the holding now representing 0.5% of the trust’s total portfolio.
In its announcement, the Investing Club outlined its rationale for the purchase, linking it to projected growth in spending on artificial intelligence infrastructure. The club’s analysis referenced public statements from technology industry executives regarding the scale of future investment.
The notice cited an estimate from Nvidia CEO Jensen Huang, who during an August earnings call projected that AI infrastructure spending could total between $3 trillion and $4 trillion by the end of the decade. The club also pointed to remarks made by Arthur Lewis, president of Dell’s infrastructure solutions group, during a Capital Markets Day event on Oct. 7. Lewis stated that global data centers are projected to require nearly $7 trillion in investment by 2030 to accommodate demand.
Corning, a manufacturer of specialty glass and fiber optic cables, is positioned to supply components for data centers, according to the club’s analysis. The announcement referenced a September report from investment bank UBS, which upgraded Corning’s stock. The UBS analysts noted that data centers utilizing modern AI systems require four to 16 times more fiber content compared to legacy systems. The bank’s report estimated a 24% compound annual growth rate for Corning’s optical communications segment through 2029.
The Investing Club’s note also mentioned other aspects of Corning’s business. This includes its role as a key supplier for Apple Inc., which in August announced a $2.5 billion commitment for Corning to manufacture cover glass for iPhones and Apple Watches at its facility in Harrodsburg, Kentucky.
Additionally, the announcement touched on Corning’s corporate performance initiative, called the “Springboard” plan. The plan, launched in late 2023, initially targeted a $5 billion increase in annualized sales by the end of 2026. In March, Corning raised that internal target to $6 billion.
The Investing Club stated it has initiated the position with a price target of $92 per share. Corning is scheduled to report its third-quarter earnings on Oct. 28.
