Improving Demand Strengthens Corning (GLW)

The London Company highlighted Corning Incorporated (NYSE:GLW) as a standout performer in its Q2 2026 investor letter. The technology company thrived due to robust demand in optical communications and AI infrastructure, leading to stronger earnings and margins. Corning Incorporated (NYSE:GLW) benefits from expanding fiber deployments and heightened optical content in data centers.

The company's leadership in technology, pricing power, and diverse end markets are seen as setting it up for sustained long-term growth. However, The London Company reduced its stake in Corning Incorporated (NYSE:GLW) due to recent strength in the stock, aiming to manage its size and limit concentration in AI data center infrastructure.

Despite trimming their position, the company's underlying thesis remains strong. The investment management firm does not include Corning Incorporated (NYSE:GLW) in its list of the 40 most popular stocks among hedge funds heading into 2026. While Corning Incorporated (NYSE:GLW) has 91 hedge fund portfolios holding it as of the end of Q1 2026, 91 hedge funds still hold the stock, up from 85 in the previous quarter.

The company is considered a potential investment, but The London Company believes other AI stocks present more significant upside potential with less downside risk.