A $1.05 billion three year minimum purchase agreement for optical solutions secures a portion of the long term commitment between the telecommunications giant and the glass manufacturer. The total contract covers more than 80 million miles of high density optical fiber and connectivity solutions from 2027 through 2032, utilizing Corning's Contour Flow Cable to increase deployment density in existing conduits. Verizon is targeting 40 to 50 million broadband passings and will use the fiber to link cell towers, enterprise data centers, and AI hyperscalers such as Amazon Web Services.
Shares in the optical value chain rose on the news, with Lumentum advancing 13% and Coherent climbing 9%. The deal follows a Goldman Sachs forecast that raised the global optical module market valuation to $148.5 billion by 2028 from $67.7 billion in 2026. Market participants view the agreement as a signal that AI infrastructure spending is shifting from internal data center GPUs toward the physical fiber backbone connecting regional hubs.
Key sources
- SOURCE@stocksavvyshay“$1.05B three year minimum purchase agreement for next generation fiber and optical solutions”x.com
- SUPPORT@wallstengine“expand broadband and build next-gen AI infrastructure through 2032”x.com
- SUPPORT@photoncap“Verizon ($VZ) is targeting 40-50 million broadband passings”x.com
- SUPPORT@stocksavvyshay“$AXTI +14% • $LITE +13% • $VIAV +12% • $AAOI +9% • $COHR +9%”x.com
- SUPPORT@photoncap“Goldman Sachs also sharply raised its global optical-module market forecast to $67.7B in 2026”x.com
- SUPPORT@firstsquawk“VERIZON, CORNING REACH PARTNERSHIP FOR FIBER: CNBC”x.com