UBS has raised its price target for Corning Inc (NYSE: GLW) to $160, a significant increase from its previous $125 estimate, driven by surging demand for fiber-optic cables from AI data centers. The analysts cited massive capital expenditure (capex) revisions by leading hyperscalers like Microsoft and Amazon as the primary catalyst.

This shift reflects the massive infrastructure buildout required to support the data transmission needs generated by artificial intelligence. The $6 billion Meta Platforms deal stands out as a crucial anchor agreement, providing guaranteed revenue and insights into future demand, which UBS believes validates the company's strategic pivot. Corning's transition from 'Scale Out' to 'Scale Up' represents a fundamental change in its business model, moving from connecting server racks to replacing copper wires within them with fiber optics. Analysts now project the 'Scale Up' market could be 2-3 times larger than the current 'Scale Out' market and remain elevated through the mid-2030s. GLW trades at a discount relative to its high-growth peers, trading on a 33x forward P/E multiple, which UBS believes offers compelling value for investors betting on AI infrastructure growth.