Shares of Corning jumped about 20% in premarket trading on Wednesday after the glassmaker announced a multiyear partnership with Nvidia to dramatically expand optical manufacturing capacity in the United States, while Nvidia’s stock rose 5.39% to $207.09, pushing its market cap back to the $5 trillion mark for the first time since geopolitical tensions earlier this year.
The collaboration will focus on developing advanced optical technologies for artificial intelligence infrastructure, including the construction of three new manufacturing facilities in North Carolina and Texas. As part of the deal, Nvidia invested $500 million in Corning through a securities arrangement that includes warrants to purchase up to 15 million Corning shares at $180.00 and an additional 3 million shares at just $0.0001 per share.
Corning plans to increase its U.S.-based optical connectivity manufacturing capacity tenfold and expand domestic fiber production by more than 50%, a move expected to create at least 3,000 jobs. Nvidia’s CEO, Jensen Huang, described the partnership as “a once-in-a-generation opportunity to reinvigorate American manufacturing and supply chains,” adding that “AI is driving the largest infrastructure buildout of our time.” Corning Chief Executive Wendell Weeks called the deal a significant step not only for AI but for the American advanced manufacturing workforce.
The agreement underscores a broader shift toward optical connectivity solutions—often termed co-packaged optics—which are increasingly viewed as critical for handling massive data flows in next-generation AI systems. Nvidia had previously invested $4 billion in laser component makers Coherent and Lumentum in March 2026 as part of an optical supply chain strategy.
The rally in Nvidia shares also benefited from a broader market relief rally: Nasdaq futures gained over 1% on news of progress toward a peace agreement with Iran, while oil prices dropped sharply. However, the chipmaker faces intensifying competition. AMD reported better-than-expected earnings and expects growing demand for central processing units in AI, while companies like Amazon, Meta, and Anthropic are developing their own custom processors to reduce reliance on Nvidia. Still, Nvidia controlled 86% of the AI accelerator market in 2025, consistent with 2024, and its top customers—Alphabet, Amazon, Meta, and Microsoft—plan up to $725 billion in data center and equipment spending this year.
