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GLW vs. ANET: Which AI Infrastructure Stock Offers More Upside?
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Key Takeaways
Corning benefits from rising demand and AI-linked optical solutions driving growth.
GLW's reorganization into five platforms boosts efficiency and supports wider market opportunities.
Arista's 2.0 strategy targets new solutions, more SaaS focus and adjacent markets despite higher costs.
Corning Incorporated (GLW - Free Report) and Arista Networks, Inc. (ANET - Free Report) are key technology firms in the smartphone and communications value chain focused on the AI data center growth wave. Corning is a leading innovator in the glass substrate industry. In addition to being a pioneer in Gorilla Glass technology, the company manufactures specialty materials, including various formulations for glass, glass ceramics and fluoride crystals for specific industrial and commercial applications. It also manufactures optical fibers, glass substrates for LCD and PC displays, automotive glass solutions and various laboratory equipment.
On the other hand, Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency.
With domain-specific expertise in core areas, both Corning and Arista are well-positioned in the tech-adjacent manufacturing landscape and have the means to cater to the evolving demands of business enterprises. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for GLW
Corning is benefiting from improved demand and the commercialization of its innovations. Its capabilities are becoming increasingly vital to diverse industries. The fiber optic solutions business is likely to be the key growth driver for GLW, aided by the increasing use of mobile devices that require efficient data transfer and networking systems. Supporting this trend is the proliferation of clouds, resulting in increased storage and even virtual computing.
Since both consumers and enterprises are using networks more extensively, and the generated data is increasingly being used to train AI models, there is a solid demand for Corning’s innovative optical connectivity products for generative AI applications.
GLW’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms to unlock opportunities for valuable synergies. These include Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. Corning has a leadership position in each of these markets, which, along with focused marketing efforts, has proved conducive to growth. In addition, the reorganization has increased efficiency by creating the opportunity to reuse assets and capabilities developed for customers in one market ecosystem to serve customers in another.
However, end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Since the Display Technologies and Specialty Materials segments are primarily dependent on consumer spending, particularly on LCD TVs and mobile PCs, this narrows down the market. Building a significant market position in China amid a bitter U.S.-China trade relationship with heightened risk of the imposition of tariffs can adversely impact its operations.
The Case for ANET
Arista holds a leadership position in 100-gigabit Ethernet switches and is increasingly gaining market traction in 200- and 400-gigabit high-performance switching products. The Arista 2.0 strategy is resonating well with customers, as its modern networking platforms are foundational for the transformation from silos to data centers. The company boasts a comprehensive portfolio with the right network architecture for client-to-campus data center cloud and AI networking, backed by three guiding principles. These include best-in-class, highly proactive products with resilience, zero-touch automation and telemetry with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms.
The Arista 2.0 strategy includes three components that are likely to drive growth over the next few years. The first component involves focused plans to invest in core businesses by rolling out new solutions and improved AI offerings. Secondly, Arista aims to emphasize more on software-as-a-service for improved revenue visibility. Last but not least, the company plans to enter adjacent markets to target a broader customer base.
However, Arista remains plagued by high operating costs. Total operating expenses in second-quarter 2025 increased around 13.8% to $452.4 million, owing to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Moreover, the redesigning of products and their supply chain mechanism has eroded margins. Although the company is witnessing increased demand, there are lingering supply bottlenecks for advanced products. Therefore, it is increasing orders for these components and trying to build up inventory, which is blocking working capital.
How Do Zacks Estimates Compare for GLW & ANET?
The Zacks Consensus Estimate for Corning’s 2025 sales implies a year-over-year rise of 12.3%, while that for EPS indicates growth of 27.6%. EPS estimates have been trending northward (up 1.6%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Arista’s fiscal 2025 sales suggests year-over-year growth of 26.7%, while that for EPS implies a rise of 26.4%. The EPS estimates have been trending northward (up 2.1%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of GLW & ANET
Over the past year, Corning has surged 69.2% compared with the industry’s growth of 84.7%. Arista has gained 29.4% over the same period.
Image Source: Zacks Investment Research
Corning looks more attractive to Arista from a valuation standpoint. Going by the price/sales ratio, Corning’s shares currently trade at 3.88 forward sales, significantly lower than 14.93 for Arista.
Both companies expect their sales to improve in 2025. In terms of price performance, Corning has outperformed Arista and is trading relatively cheaply compared with the latter. With exposure to long-term trends (data centers, telecom infrastructure and advanced glass) and a solid Zacks Rank, GLW currently appears to be a better investment option at the moment.
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GLW vs. ANET: Which AI Infrastructure Stock Offers More Upside?
Key Takeaways
Corning Incorporated (GLW - Free Report) and Arista Networks, Inc. (ANET - Free Report) are key technology firms in the smartphone and communications value chain focused on the AI data center growth wave. Corning is a leading innovator in the glass substrate industry. In addition to being a pioneer in Gorilla Glass technology, the company manufactures specialty materials, including various formulations for glass, glass ceramics and fluoride crystals for specific industrial and commercial applications. It also manufactures optical fibers, glass substrates for LCD and PC displays, automotive glass solutions and various laboratory equipment.
On the other hand, Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency.
With domain-specific expertise in core areas, both Corning and Arista are well-positioned in the tech-adjacent manufacturing landscape and have the means to cater to the evolving demands of business enterprises. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for GLW
Corning is benefiting from improved demand and the commercialization of its innovations. Its capabilities are becoming increasingly vital to diverse industries. The fiber optic solutions business is likely to be the key growth driver for GLW, aided by the increasing use of mobile devices that require efficient data transfer and networking systems. Supporting this trend is the proliferation of clouds, resulting in increased storage and even virtual computing.
Since both consumers and enterprises are using networks more extensively, and the generated data is increasingly being used to train AI models, there is a solid demand for Corning’s innovative optical connectivity products for generative AI applications.
GLW’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms to unlock opportunities for valuable synergies. These include Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. Corning has a leadership position in each of these markets, which, along with focused marketing efforts, has proved conducive to growth. In addition, the reorganization has increased efficiency by creating the opportunity to reuse assets and capabilities developed for customers in one market ecosystem to serve customers in another.
However, end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Since the Display Technologies and Specialty Materials segments are primarily dependent on consumer spending, particularly on LCD TVs and mobile PCs, this narrows down the market. Building a significant market position in China amid a bitter U.S.-China trade relationship with heightened risk of the imposition of tariffs can adversely impact its operations.
The Case for ANET
Arista holds a leadership position in 100-gigabit Ethernet switches and is increasingly gaining market traction in 200- and 400-gigabit high-performance switching products. The Arista 2.0 strategy is resonating well with customers, as its modern networking platforms are foundational for the transformation from silos to data centers. The company boasts a comprehensive portfolio with the right network architecture for client-to-campus data center cloud and AI networking, backed by three guiding principles. These include best-in-class, highly proactive products with resilience, zero-touch automation and telemetry with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms.
The Arista 2.0 strategy includes three components that are likely to drive growth over the next few years. The first component involves focused plans to invest in core businesses by rolling out new solutions and improved AI offerings. Secondly, Arista aims to emphasize more on software-as-a-service for improved revenue visibility. Last but not least, the company plans to enter adjacent markets to target a broader customer base.
However, Arista remains plagued by high operating costs. Total operating expenses in second-quarter 2025 increased around 13.8% to $452.4 million, owing to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Moreover, the redesigning of products and their supply chain mechanism has eroded margins. Although the company is witnessing increased demand, there are lingering supply bottlenecks for advanced products. Therefore, it is increasing orders for these components and trying to build up inventory, which is blocking working capital.
How Do Zacks Estimates Compare for GLW & ANET?
The Zacks Consensus Estimate for Corning’s 2025 sales implies a year-over-year rise of 12.3%, while that for EPS indicates growth of 27.6%. EPS estimates have been trending northward (up 1.6%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Arista’s fiscal 2025 sales suggests year-over-year growth of 26.7%, while that for EPS implies a rise of 26.4%. The EPS estimates have been trending northward (up 2.1%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of GLW & ANET
Over the past year, Corning has surged 69.2% compared with the industry’s growth of 84.7%. Arista has gained 29.4% over the same period.
Image Source: Zacks Investment Research
Corning looks more attractive to Arista from a valuation standpoint. Going by the price/sales ratio, Corning’s shares currently trade at 3.88 forward sales, significantly lower than 14.93 for Arista.
Image Source: Zacks Investment Research
GLW or ANET: Which is a Better Pick?
Corning carries a Zacks Rank #2 (Buy) while Arista carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their sales to improve in 2025. In terms of price performance, Corning has outperformed Arista and is trading relatively cheaply compared with the latter. With exposure to long-term trends (data centers, telecom infrastructure and advanced glass) and a solid Zacks Rank, GLW currently appears to be a better investment option at the moment.