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NYSE Technology

Broadcom CEO Dampens Near-Term Optical Networking Outlook, Sending Corning Shares Down 5%

feedReported by Dow Jones Newswires
Sentiment info
Negative
Importance info
8
Price
$136.7
Mkt Cap
$124.265B
52W Low
$37.31
52W High
$162.1
Market data snapshot near publication time

summarizeSummary

Broadcom's CEO, Hock E. Tan, stated on a recent earnings call that the widespread shift from copper to optical fiber for 'scale-up' within AI data center racks is unlikely to occur this year or next, citing copper's advantages in latency, power, and cost. These comments directly impact Corning, a significant player in optical networking and a collaborator with Broadcom on co-packaged optics (CPO), a technology expected to benefit from AI data center growth. Corning's stock dropped 5% in premarket trading following these remarks, as the near-term outlook for a significant growth driver is now tempered. This news challenges the narrative that has seen Corning's shares climb 65% this year, positioning it as an AI boom winner. While analysts suggest CPO adoption is still 2-3 years away from meaningful inflection, the CEO's comments introduce near-term uncertainty for a previously strong growth catalyst.

في وقت هذا الإعلان، كان GLW يتداول عند ‏١٣٦٫٧٠ US$ في NYSE ضمن قطاع Technology، مع قيمة سوقية تقارب ١٢٤٫٣ مليار US$. تراوح نطاق التداول خلال 52 أسبوعًا بين ‏٣٧٫٣١ US$ و‏١٦٢٫١٠ US$. تم تقييم هذا الخبر على أنه ذو معنويات سوقية سلبية وبدرجة أهمية ٨ من 10. المصدر: Dow Jones Newswires.


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