Corning Stock Rally Points To 3 US Optical Connectivity Stocks To Watch

Corning’s rally and the surge of interest around optical connectivity have thrown a spotlight on a corner of U.S. advanced manufacturing that many investors rarely look at closely. Long term supply agreements tied to data centers, AI related workloads, and high capacity communications can reshape how certain companies earn and plan future cash flows. This article looks at 3 stocks that appear positively exposed to the same themes moving Corning, using our U.S. Advanced Manufacturing screener to filter for financially solid, moderate risk businesses. By the end, you will have a clearer sense of where this news could matter most for your watchlist.

Insight Enterprises (NSIT)

Overview: Insight Enterprises is a global IT solutions provider that helps companies design, source, and run the hardware, software, cloud, cybersecurity, data, AI, and workplace systems that sit behind modern digital operations.

Operations: Insight Enterprises generates most of its revenue from North America at about US$6.6b, with additional contributions from EMEA at roughly US$1.4b and APAC at about US$250m.

Market Cap: US$3.4b

Investors looking at the Corning story may find Insight Enterprises interesting because it sits closer to the IT infrastructure and services layer that helps data centers and AI projects actually run. The company is focusing on higher margin cloud, security, and AI services, which ties into sector themes, although its net margin is currently a modest 2.2% and past earnings have shown some pressure. Recent launches in AI driven cybersecurity, a hardware and infrastructure backlog, and a P/E below the broader Electronic industry suggest a mix of growth potential and valuation support, but debt coverage and one off losses mean this is not a simple story.

Insight Enterprises’ push into cloud, security, and AI services, combined with a modest 2.2% net margin and a P/E below the broader Electronic industry, raises a bigger question that the 3 key rewards and 2 important warning signs (1 is major!) only starts to answer

ADTRAN Holdings (ADTN)

Overview: ADTRAN Holdings builds the hardware and software that move data across high speed broadband and optical networks, supplying equipment like fiber access gear, routers, and optical transport systems alongside management platforms used by telecom operators and enterprises. Its solutions support residential broadband, data centers, mobile networks, and private connectivity for customers across the U.S., Europe, and other international markets.

Operations: ADTRAN Holdings generates most of its revenue from Network Solutions at about US$932.6m, with Services & Support contributing around US$189.5m.

Market Cap: US$1.1b

Investors tracking Corning’s optical surge may want ADTRAN Holdings on the radar because it is tied directly into the same AI and broadband build out, yet still trades on a modest P/S of about 1x versus peers closer to 4.2x. Analysts currently model strong earnings improvement and a path to profitability within 3 years. The catch is that ADTRAN is currently loss making with funding risk and foreign exchange exposure, while execution around big European and U.S. broadband programs remains crucial. That mix of optical exposure, quantum safe security projects, and balance sheet considerations may warrant a deeper look for some investors.

ADTRAN’s broadband and optical build out story looks very different when you compare its modest 1x P/S to peers near 4.2x, and then factor in the swing to profitability hinted at in the analyst forecasts for ADTRAN Holdings

Calix (CALX)

Overview: Calix provides cloud platforms, software, Wi-Fi systems, and managed services that help broadband service providers run fiber networks and sell premium connectivity experiences to homes, businesses, multi dwelling units, and entire towns.

Operations: Calix generates about US$1.1b in revenue from developing, marketing, and selling communications access systems and software, with roughly US$989.0m from the United States and smaller contributions from Europe, the rest of the Americas, and other international markets.

Market Cap: US$2.3b

Calix is squarely in the slipstream of the Corning driven optical story, supplying the software and access systems broadband providers need as AI heavy data traffic and fiber builds expand. The company is leaning into higher margin, recurring software and managed services like Calix One and Agent Workforce Cloud, supported by a record US$385m remaining performance obligation and recent AI focused product launches. Forecasts for fast earnings and revenue growth, plus active buybacks totaling US$361.64m, are key elements in some analysts’ views on potential upside, contingent on those assumptions. However, earnings only recently turned positive, the P/E is elevated, and outcomes depend on broadband funding, Tier 1 wins, and effective AI monetization, so the overall balance of risks and opportunities remains a central consideration for investors evaluating Calix.

Calix’s shift toward higher margin software, AI focused launches, and US$385m in remaining performance obligations hints at a bigger story. See how the full picture looks when you line this up with the analyst forecasts for Calix

The three stocks in this article are only a starting point, as the full U.S. Advanced Manufacturing screener surfaced 22 more U.S. advanced manufacturing companies with equally compelling stories tied to optical components, semiconductors, communications, and connectivity. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction ideas in this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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