Cramer touts a stock 'deep in the data centers,' partnered with Nvidia, Apple

Corning (GLW) shares have surged 60% year-to-date, hitting 25-year highs, driven by its critical role as a supplier to major tech firms like Nvidia and Apple. The company is capitalizing on the AI boom by providing specialized cabling for Nvidia's data center AI chips and has deepened its partnership with Apple, which is investing $2.5 billion to expand Corning's U.S. production of glass for all 2025 iPhones and Apple Watches. This strategic positioning underscores Corning's integral, yet potentially undervalued, contribution to both the burgeoning AI infrastructure and consumer electronics markets.

Analysis

Corning (GLW) has demonstrated significant market outperformance, with its stock surging 60% year-to-date to a 25-year high, starkly outpacing the S&P 500's 12% gain. This rally is fundamentally driven by the company's strategic position as a critical supplier to two major technology growth sectors. Firstly, Corning is integral to the AI infrastructure build-out, providing specialized cabling that supports Nvidia's AI chips, positioning it as a core 'plumbing' provider for data centers absorbing billions in capital expenditure. Secondly, its partnership with Apple has materially deepened, underscored by a $2.5 billion investment from Apple to triple production at Corning's Kentucky facility. This expansion is validated by commitments from both CEOs, ensuring that all 2025 iPhones and Apple Watches globally will use glass from this factory, which provides exceptional revenue visibility. The stock's dramatic re-rating, eclipsing even Nvidia's 32% YTD rise and contrasting with Apple's 7% decline, suggests the market is now fully recognizing Corning's embedded role in estos high-growth ecosystems.

Key Decisions for Investors

• Given the stock's 60% year-to-date surge to a 25-year high, investors should assess whether Corning's strategic role in AI data centers and its deepened Apple partnership is already reflected in the current valuation.
• Consider GLW as a 'picks and shovels' investment to gain exposure to the AI and premium device themes, offering a different risk-reward profile compared to direct holdings in Nvidia or Apple.
• It is crucial to monitor for any signs of slowing capital expenditure in the data center space and to track Corning's execution on its committed production ramp-up for Apple, as these are now the primary drivers of the investment thesis.