This Stock is a Screaming Buy

By the end of this year, four U.S. tech companies will have spent more than $700 billion building the physical backbone of the AI economy.

Microsoft is on the hook for $190 billion. Google $185 billion. Meta $135 billion. Amazon $200 billion.

In today’s dollars, that’s more than twice what it cost America to land 12 men on the Moon and build the atomic bomb.

And that’s just one year. Wall Street analysts expect the figure to top $1 trillion by 2027.

It’s the biggest sustained surge in industrial spending America has seen since World War II.

The money isn’t going into software, marketing, or research. It’s pouring into football-field-sized buildings packed with chips, miles of cooling pipes, gigawatts of new power — and the hair-thin glass fibers that carry data between it all at the speed of light.

That last piece is where we’re focused today. Because one company has a near-stranglehold on it. And our system just flashed a green light to buy it.

The Glass That Powers AI
The company is Corning (GLW). You might know it as the maker of Gorilla Glass — the tough screen on your iPhone. Or as the company that made the bulbs for Thomas Edison’s first light bulbs back in the 1880s.

Founded in 1851 in upstate New York, Corning has spent 175 years making glass for whatever technology happened to be reshaping the world at the time. Train signal lenses. Television tubes. Pyrex cookware. Phone screens.

Today, it’s making the glass that powers AI.

Earlier this month, Corning announced a multi-year deal with Nvidia to build the high-speed fiber connections that link the chips inside an AI data center. As part of the deal, Corning will expand its U.S. fiber production by more than 50%.

That’s a big deal because fiber-optic glass is the only practical way to move data fast enough to keep an AI data center running. Copper wires can’t handle it. Wireless can’t handle it. Only light moving through hair-thin glass can.

And Corning’s fiber business is already on fire. Sales jumped 35% over the past year. They’re on track to hit $8.4 billion this fiscal year. By 2028, the company expects that figure to reach $13.4 billion.

This has gotten investors’ attention. Corning is up 127% over the last six months. And it’s up 37% in the last two months alone.

That kind of run usually has investors backing away. The instinct is to wait for a pullback and not to chase these explosive gains.

But our data shows that Corning’s recent run is flagging even higher gains to come.

Every Stock Has Its Own “Thumbprint”
FBI profilers built an entire discipline on a simple idea. Study anyone carefully enough, and their patterns become visible. Not perfectly. But enough to act on.

Stocks work the same way.

Every stock has its own behavioral thumbprint — habits, quirks, and tells that repeat over the years. Once you learn how to read that thumbprint, the market looks less like a random system and more like a place where patterns govern what happens next.

That’s the thinking behind what Wall Street calls signals studies. Instead of looking at earnings, revenues, or favorable economic conditions, you’re looking for patterns emerging in the data that, when they’ve emerged before, have historically preceded a big move.

Corning is showing one of those patterns right now.

Going back to 1981, Corning has jumped 37% or more over a two-month stretch a total of 341 times. That sounds like a lot — but in 44 years of trading, it’s still rare.

And here’s what makes the pattern interesting. Those big two-month runs don’t usually mark the top.

In the month after one of these signals, Corning shares have climbed another 7.8% on average. And two months after the signal, they’ve climbed an average of 18.6% — with a 77% hit rate. Take a look…

In other words, when this stock has run hard, history says it’s tended to keep running.

So don’t write off Corning because of its recent rally. This signal study shows the rally likely has more room to run.

The Quantum Score Says It’s a Long-Term Buy, Too
Signals studies show us when a stock is set up for a short-term move. For the long-term view, we turn to our Quantum Score.

For newer readers, the Quantum Score grades every stock we cover from 0 to 100, based on two things:

• A Fundamental Score that measures earnings growth, revenue growth, and how much profit the company is squeezing out of each dollar of sales.
• A Technical Score that measures price momentum and unusually large buying from big institutions — the hedge funds, pension funds, and mutual funds that move markets.

Anything above 75 is a buy. Above 90 is a screaming buy.

Corning’s Quantum Score is 90.5.

Put it all together, and the case is hard to argue with…

• Corning is the dominant supplier of the glass fiber that AI data centers can’t function without.
• It just locked in a multi-year deal with the most important customer in the industry.
• Our short-term Signals system says it’s set to keep running.
• And the Quantum Score says it’s a screaming buy for the years ahead.

Any one of these reasons would be enough to put Corning on your watchlist. Taken together, that’s about as bullish a setup as you’ll find on the market today.

Until next time,

Lucas Downey

Source: TradeSmith