Corning stock may soar on Tuesday, but Jim Cramer has a clear message for investors tempted to take profits: “The rally isn’t over yet.” Corning’s stock soared more than 16% after CNBC reported that it had entered into a new partnership with the club, which owns MetaPlatform. Facebook’s parent company announced it will pay Corning up to $6 billion for fiber-optic cables used in its data centers through 2030. Corning rose to a new all-time high following the announcement, making it the biggest gainer in the S&P 500 on the day. But this monstrous move isn’t a reason for investors to shed their money, Cramer said. “Please don’t sell this stock,” he said at Tuesday’s morning meeting. “Understand, we’re in this thing at $200, not $109.” Corning stock hit an intraday high near $114 and is up more than 123% over the past year. Demand for the company’s fiber optic cables is rapidly increasing. This is to provide a more energy efficient option to the copper wiring currently found in data centers. Corning could gain more market share in the fast-growing data center market as big tech companies look to build bigger data centers in the long run. And that’s exactly what we’re seeing with this new meta deal. As part of the partnership, Corning is expanding to meet demand from Meta as well as other AI investment giants like OpenAI and potential future orders from club namesake Nvidia, Alphabet’s Google, Microsoft and Amazon. In fact, CEO Wendell Weeks said the deal would make Corning the world’s largest fiber-optic cable factory. “Almost every call we get from customers is, ‘How can we get more customers?'” Weeks told CNBC. “I think hyperscalers will be our biggest customers next year.” Additionally, Corning’s partnership with Apple as a supplier of glass for the iPhone is a big boost. In August, Apple announced a $2.5 billion investment in Corning’s Kentucky manufacturing facility, which CEO Weeks said would triple production. All of this is “a huge validation of our thesis,” Jeff Marks, director of portfolio analysis at Investing Club, said at the morning meeting. “It’s exactly what we’ve been waiting for.” Corning is scheduled to report earnings on Wednesday morning, after which it will consider updating its price target. The club currently has a buy rating of 1, with a price target of $95 per share. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
