We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JBL vs. GLW: Which Tech Hardware Stock is the Better Buy?
Read MoreHide Full Article
Key Takeaways
Jabil and Corning are drawing investor attention as AI infrastructure demand boosts tech hardware interest.
Cloud and AI data center spending is helping drive momentum across infrastructure-related hardware markets.
Growth outlook and valuation trends are becoming key factors in comparing tech hardware opportunities.
Jabil Inc. (JBL - Free Report) and Corning Incorporated (GLW - Free Report) are two leading players in the technology manufacturing space and operate in the broader tech hardware supply chain. Jabil is one of the leading providers of EMS solutions worldwide. The company operates in multiple sectors, including aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries, providing electronics design, production, product management and after-market services.
Corning boasts a diverse portfolio offering; its portfolio consists of hardware and equipment, which comprises optical and copper connectivity products. It also develops glass technologies to produce advanced glass substrates that are used in a large number of applications across multiple markets.
Growing AI proliferation across consumer electronics, AI data centers and automotive has created strong growth opportunities for tech enterprises. With in-depth expertise, both Jabil and Corning are well-positioned to capitalize on these emerging trends.
The Case for Jabil
The Intelligent Infrastructure segment remains a major growth engine for Jabil. During the second quarter, the company generated $4 billion revenues from this segment, up 52% year over year. The growth was driven by strength in cloud data center infrastructure, networking & communications and capital equipment end markets. Management has emphasized that the growth in Intelligent Infrastructure needs relatively lower capex. This helps in improving return on investment, ensuring better cash conversion and better margin.
Jabil is riding the AI infrastructure boom. Demand for its leading-edge racks and servers is growing in AI data centers. Backed by its robust portfolio, the company is expanding its hyperscaler customer base. Growth in AI-data-center-related demand is outpacing the supply. Hence, it is steadily expanding its portfolio and manufacturing capacity to cater to this high-growth market. In the Southeast United States, the company is set to invest $500 million to expand its manufacturing to capitalize on the AI data center market expansion. Strong presence in the country will protect JBL from trade wars, geopolitical risks and boost its reliability among leading hyperscalers such as Amazon and Microsoft.
However, it should be noted that Jabil’s growth prospects are not only reliant on AI-related spending. The company’s automotive and renewable energy verticals have started to recover. In the recent quarter, it reported a $3 billion in revenues from the Regulated Industries segment, which is up 10% year over year.
In the second quarter of fiscal 2026, Jabil generated $411 million of net cash from operating activities compared to $334 million a year ago. Free cash flow was $360 million, and management reiterated its target of generating more than $1.3 billion in free cash flow in the full year. This highlights efficient working capital management. Moreover, the company plans to allocate a lion’s share of the cash flow in buybacks, driving greater value to shareholders. Jabil’s multi-region presence and focus on localized manufacturing have improved its supply chain resilience and boosted its reliability to its customers.
The Case for Corning
Corning is witnessing healthy traction in the Optical Communications segment. Since both consumers and enterprises are using networks more extensively and the data thus generated is increasingly being used to train AI models, there is tremendous demand for quality networking. Additionally, data consumption patterns are changing, with a growing propensity to consume video content, creating the need for faster data transfer. Since optical networks are more efficient and most existing networks are copper-based, the demand for optical solutions is particularly strong.
Corning offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth.
Its U.S.-made solar product portfolio is also turning into a major growth driver. Corning has built the largest solar ingot and wafer facility in Michigan. It is the leading producer of semiconductor polysilicon, a material used in the solar industry for wafer manufacturing. The semiconductor polysilicon facility is situated in Michigan as well. The colocation has created a vertically integrated manufacturing framework that will strengthen Corning’s position in the U.S. solar supply chain.
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 largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this further narrows down the market. In the Optical Communications segment, it faces competition from industry leaders like Amphenol Corporation (APH - Free Report) . The growing use of AI and machine learning applications is driving demand for Amphenol’s high-speed power and fiber optic interconnect solutions. Amphenol is witnessing solid traction in its Communications Solutions segment.
Another concern is with respect to the concentration of customer market share. In 2025, the Display Technology segment generated 59% of its total net sales from three end customers. Similarly, within the Automotive segment, 61% of net sales came from just three end customers, while two clients contributed to 43% of revenues in the Specialty Materials business. Factors such as shifts in demand patterns or the insolvency of any key customers can lead to substantial reductions in net sales and anticipated cash flows.
How Do Estimates Compare for JBL & GLW?
The Zacks Consensus Estimate for Jabil’s 2025 sales and EPS implies year-over-year rallies of 14.15% and 26.15%, respectively. The EPS estimates have been trending northward (up 6.22%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Corning’s 2025 sales and EPS indicates year-over-year increases of 10.09% and 23.02%, respectively. The EPS estimates have been trending northward (up 0.98%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & GLW
Over the past year, Jabil has gained 125.7% compared with Corning’s growth of 316.4% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Corning from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 22.09 forward earnings, lower than 51.95 for GLW.
Both Corning and Jabil are expanding their portfolio offering to gain a strong foothold in the expanding AI space. Jabil and Corning both are expected to improve revenues in the upcoming quarters; however, the revenue growth expectation of Jabil far outpaces the expectations of Corning. Jabil also shows a stronger upward estimate revision. Jabil’s strong supply chain, diversified revenue stream and strong cash flow are major tailwinds. Hence, Jabil seems to be a better investment option at the moment.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
JBL vs. GLW: Which Tech Hardware Stock is the Better Buy?
Key Takeaways
Jabil Inc. (JBL - Free Report) and Corning Incorporated (GLW - Free Report) are two leading players in the technology manufacturing space and operate in the broader tech hardware supply chain. Jabil is one of the leading providers of EMS solutions worldwide. The company operates in multiple sectors, including aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries, providing electronics design, production, product management and after-market services.
Corning boasts a diverse portfolio offering; its portfolio consists of hardware and equipment, which comprises optical and copper connectivity products. It also develops glass technologies to produce advanced glass substrates that are used in a large number of applications across multiple markets.
Growing AI proliferation across consumer electronics, AI data centers and automotive has created strong growth opportunities for tech enterprises. With in-depth expertise, both Jabil and Corning are well-positioned to capitalize on these emerging trends.
The Case for Jabil
The Intelligent Infrastructure segment remains a major growth engine for Jabil. During the second quarter, the company generated $4 billion revenues from this segment, up 52% year over year. The growth was driven by strength in cloud data center infrastructure, networking & communications and capital equipment end markets. Management has emphasized that the growth in Intelligent Infrastructure needs relatively lower capex. This helps in improving return on investment, ensuring better cash conversion and better margin.
Jabil is riding the AI infrastructure boom. Demand for its leading-edge racks and servers is growing in AI data centers. Backed by its robust portfolio, the company is expanding its hyperscaler customer base. Growth in AI-data-center-related demand is outpacing the supply. Hence, it is steadily expanding its portfolio and manufacturing capacity to cater to this high-growth market. In the Southeast United States, the company is set to invest $500 million to expand its manufacturing to capitalize on the AI data center market expansion. Strong presence in the country will protect JBL from trade wars, geopolitical risks and boost its reliability among leading hyperscalers such as Amazon and Microsoft.
However, it should be noted that Jabil’s growth prospects are not only reliant on AI-related spending. The company’s automotive and renewable energy verticals have started to recover. In the recent quarter, it reported a $3 billion in revenues from the Regulated Industries segment, which is up 10% year over year.
In the second quarter of fiscal 2026, Jabil generated $411 million of net cash from operating activities compared to $334 million a year ago. Free cash flow was $360 million, and management reiterated its target of generating more than $1.3 billion in free cash flow in the full year. This highlights efficient working capital management. Moreover, the company plans to allocate a lion’s share of the cash flow in buybacks, driving greater value to shareholders. Jabil’s multi-region presence and focus on localized manufacturing have improved its supply chain resilience and boosted its reliability to its customers.
The Case for Corning
Corning is witnessing healthy traction in the Optical Communications segment. Since both consumers and enterprises are using networks more extensively and the data thus generated is increasingly being used to train AI models, there is tremendous demand for quality networking. Additionally, data consumption patterns are changing, with a growing propensity to consume video content, creating the need for faster data transfer. Since optical networks are more efficient and most existing networks are copper-based, the demand for optical solutions is particularly strong.
Corning offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth.
Its U.S.-made solar product portfolio is also turning into a major growth driver. Corning has built the largest solar ingot and wafer facility in Michigan. It is the leading producer of semiconductor polysilicon, a material used in the solar industry for wafer manufacturing. The semiconductor polysilicon facility is situated in Michigan as well. The colocation has created a vertically integrated manufacturing framework that will strengthen Corning’s position in the U.S. solar supply chain.
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 largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this further narrows down the market. In the Optical Communications segment, it faces competition from industry leaders like Amphenol Corporation (APH - Free Report) . The growing use of AI and machine learning applications is driving demand for Amphenol’s high-speed power and fiber optic interconnect solutions. Amphenol is witnessing solid traction in its Communications Solutions segment.
Another concern is with respect to the concentration of customer market share. In 2025, the Display Technology segment generated 59% of its total net sales from three end customers. Similarly, within the Automotive segment, 61% of net sales came from just three end customers, while two clients contributed to 43% of revenues in the Specialty Materials business. Factors such as shifts in demand patterns or the insolvency of any key customers can lead to substantial reductions in net sales and anticipated cash flows.
How Do Estimates Compare for JBL & GLW?
The Zacks Consensus Estimate for Jabil’s 2025 sales and EPS implies year-over-year rallies of 14.15% and 26.15%, respectively. The EPS estimates have been trending northward (up 6.22%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Corning’s 2025 sales and EPS indicates year-over-year increases of 10.09% and 23.02%, respectively. The EPS estimates have been trending northward (up 0.98%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & GLW
Over the past year, Jabil has gained 125.7% compared with Corning’s growth of 316.4% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Corning from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 22.09 forward earnings, lower than 51.95 for GLW.
Image Source: Zacks Investment Research
JBL or GLW: Which is a Better Pick?
Jabil and Corning carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Corning and Jabil are expanding their portfolio offering to gain a strong foothold in the expanding AI space. Jabil and Corning both are expected to improve revenues in the upcoming quarters; however, the revenue growth expectation of Jabil far outpaces the expectations of Corning. Jabil also shows a stronger upward estimate revision. Jabil’s strong supply chain, diversified revenue stream and strong cash flow are major tailwinds. Hence, Jabil seems to be a better investment option at the moment.