There is a huge need for fibre, driven by GenAI’s impact on data centres
Corning, the fibre optic cable maker, has raised guidance for its Q2 revenues and expects to add $3 billion a year sales during the next three years
Corning says its second-quarter revenues will hit $3.6 billion, up from its previous guidance of $3.4 billion, driven by Generative AI (GenAI). Its Q2 earnings report will be on 30 July.
Wendell Weeks, Corning’s CEO and Chair for close to two decades, commented in a statement,“We expect second-quarter core sales to exceed our previous guidance and mark a return to year-over-year growth. The outperformance was primarily driven by the strong adoption of our new optical connectivity products for generative AI.
“These results reinforce our confidence in ‘Springboard’ – Corning’s plan to add more than $3bn in annualised sales in the next three years as cyclical factors and secular trends combine.”
Michael O’Day, CTO for Corning Optical Communications explained the need for more fibre in a Fiber Broadband Association’s (FBA) Fiber for Breakfast webinar last November.
Day said, “Many people may not realise that fibre plays a pivotal role inside a data centre” adding that AI is “moving super-fast, and that causes strain on building an AI network inside a data centre.”
Data centres must build a second layer of computing with many more fibre links, according to O’Day, who also claims that large language models (LLMs) will need up to five times more optical connectivity compared with today’s hyperscale architectures
Corning’s share price rose 12% on Monday and continued upwards to $44.04, making its market cap close to $38billion.