AI Infrastructure Stocks Gain Momentum on Strategic Partnerships
AI infrastructure shares saw a notable rebound Tuesday as investor sentiment strengthened around rising data center investments. Key announcements from Qualcomm and Corning helped boost stocks in related sectors, lifting industry leaders including Intel, AMD, Hewlett Packard Enterprise, and photonics firm Coherent.
Intel and AMD shares climbed roughly 9% and 6% respectively, while Hewlett Packard Enterprise rose 8% and Coherent gained 7%. Corning’s stock surged 8%, extending its year-to-date gains to 90%, marking it as one of the best-performing stocks in the sector this year.
Corning Secures Multi-Billion Dollar Fiber Deal with Verizon
Corning, a leading fiber optics manufacturer, announced a strategic partnership with Verizon worth several billion dollars to develop fiber networks crucial for AI connectivity. This agreement strengthens Corning’s pivotal role in the AI data center supply chain.
Earlier in June, Corning entered a similar high-value deal with Amazon. Additionally, Nvidia committed up to $3.2 billion to establish three fiber manufacturing facilities in North Carolina and Texas, supporting Corning’s capacity expansion efforts.
Qualcomm and Amazon Ink $4 Billion Warrant Agreement
Qualcomm filed documents revealing a warrant deal with Amazon valued at up to $4 billion. This agreement is part of a broader collaboration in AI infrastructure, with Amazon Web Services (AWS) expected to purchase up to $60 billion worth of server chips and related technologies from Qualcomm.
At the Goldman Sachs Communacopia+ tech conference in San Francisco, Qualcomm CFO Akash Palkhiwala confirmed that revenues from Amazon’s chip purchases will begin contributing in Q4 2024 and will play a significant role in Qualcomm’s target of reaching $15 billion in data center revenue by fiscal 2029. He also disclosed ongoing progress with another undisclosed data center client.
AMD Remains Bullish on Expanding AI Market Opportunity
AMD CFO Jean Hu highlighted at the same conference that the total addressable AI market could reach $3 trillion by 2030, surpassing prior expectations of a $2 trillion semiconductor market by 2028. CEO Lisa Su had echoed similar views in AMD’s July earnings release.
Data Center Expansion Faces Community Resistance
Despite robust investment sentiment, public opposition to large data center projects remains a factor. A May 2026 Gallup poll found that 71% of Americans were against building large data centers in their communities. Industry participants like AI company Anthropic have acknowledged these community concerns as potential financial risks in their filings.
The partnerships forged by Qualcomm and Corning underscore continued confidence in AI-driven demand growth. They also signal ongoing consolidation and capital influx into the infrastructure supporting AI applications.