Corning partners with Broadcom for advanced data center optics

CORNING, N.Y. - Corning Incorporated (NYSE:GLW) has announced a collaboration with Broadcom Incorporated (NASDAQ:AVGO) to supply key optical components for Broadcom’s Bailly co-packaged optics (CPO) technology. The partnership aims to address the increasing demands for processing capacity within data centers, driven by the growth of artificial intelligence (AI) workloads. According to InvestingPro data, Broadcom stands as a prominent player in the Semiconductors industry, with impressive revenue of $54.53 billion and industry-leading gross margins of 76.26%.

Broadcom’s Bailly CPO system, which is the first to offer a 51.2 terabit per second (TBps) ethernet switch, will integrate Corning’s advanced optical components to enhance optical interconnection density and power efficiency. This development is set to benefit large-scale AI clusters by enabling higher speeds and densities, while also improving power consumption. The company’s strong focus on innovation is reflected in its remarkable 40.3% revenue growth over the last twelve months, as reported by InvestingPro.

The CPO technology brings optics and electronics closer together within a processing system, which is essential for AI and other high-bandwidth applications. Corning is now a qualified supplier for the optical infrastructure required to connect fibers to Broadcom’s optical engines with precision and reliability. The supplied fiber harnesses include connectors, single mode and polarization maintaining fibers, as well as fiber array units (FAUs).

Benoit Fleury, Director of CPO Business Development at Corning Optical Communications, emphasized the performance and reliability of the optical connectivity solutions provided by Corning. Sheng Zhang, Chief Technology Officer of Optical Systems Division at Broadcom, highlighted the breakthrough performance achieved through the multi-year collaboration with Corning.

In addition to the collaboration with Broadcom, Corning continues to innovate in the data center networking space with products like the CPO FlexConnect™ Fiber, designed to enhance system performance by improving bend performance and reducing multi-path interference (MPI).

This collaboration is part of Corning’s ongoing efforts to support the evolution of data center networks and meet the needs of dynamic industries. The announcement is based on a press release statement from Corning Incorporated. While Broadcom’s stock is currently trading at premium multiples according to InvestingPro analysis, investors can access detailed valuation metrics and 19 additional ProTips through the platform’s comprehensive Pro Research Report, available for over 1,400 US stocks.

In other recent news, Microsoft and Meta Platforms reported quarterly results that exceeded expectations, significantly impacting premarket trading. Microsoft’s strong performance was driven by its thriving cloud business, which continues to benefit from the growing demand for AI services. Meta not only surpassed expectations but also increased its full-year forecast for capital expenditures as it focuses on AI investments. Meanwhile, Apple faced a setback as a federal judge ruled that the company violated a court order regarding its App Store.

In another development, Broadcom launched an AI-driven Incident Prediction tool for its Symantec Endpoint Security Complete product, aiming to enhance cyber defenses. This tool is designed to predict and disrupt cyberattacks, improving security operations. Additionally, Broadcom received a Buy rating from Seaport Global Securities, which cited the company’s strong position in AI spending. However, Cantor Fitzgerald adjusted Broadcom’s price target from $300 to $250, maintaining an Overweight rating due to macroeconomic uncertainties. Despite these challenges, Broadcom’s diversified nature and strong demand for AI are expected to sustain its business outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.