AI Boom Boosts Corning, Hubbell, and Enfabrica in AI Datacenter Shift

Key Takeaways:

• Corning’s optical sales soared 41%, as demand for AI data center connectivity drove record results.
  

• Hubbell raised its profit forecast, citing robust orders for power and wiring gear used in AI infrastructure projects.
  

• Enfabrica, backed by Nvidia, introduced a system that lowers memory costs for AI servers by enabling high-speed DDR5 integration.
  

• These results show how AI is reshaping traditional industrial supply chains, lifting firms far outside the tech sector.

AI’s Infrastructure Footprint Reaches Deep into Industry

The explosive growth of AI data centers is rippling far beyond the world of tech platforms and chipmakers. Companies that build the underlying infrastructure—from fiber optics to electrical power gear to memory interconnects—are now among the biggest beneficiaries of the AI boom.

Corning, Hubbell, and Enfabrica each reported significant gains or strategic moves this week, showing how AI demand is reshaping revenue streams, reshuffling supply chains, and breathing new life into sectors long considered outside the innovation spotlight.

Corning: Optical Demand Signals a Structural Shift

Corning Inc., a U.S.-based manufacturer known for its glass, ceramics, and optical technologies, supplies fiber optic connectivity systems critical for high-speed data transmission in sectors including telecom and AI data centers. As AI-driven compute workloads surge, its fiber optic systems are becoming indispensable for linking GPUs and servers in hyperscale environments.

In the second quarter, Corning reported a 12% increase in core sales to $4.05 billion, driven by a 41% jump in its Optical Communications segment to $1.57 billion. For the third quarter, the company expects core sales of $4.2 billion and core earnings per share of $0.63 to $0.67, above analyst estimates of $0.61 per share.

“We also expect an additional growth driver to emerge in the coming months, as new and existing customers seek to leverage our large U.S. advanced manufacturing footprint,” CEO Wendell Weeks said—highlighting both near-term momentum and strategic advantage.

These results illustrate how Corning is shifting from a traditional materials business into a core infrastructure provider in the AI era, as physical connectivity becomes a defining constraint for next‑generation compute design.

Hubbell: Power Gear Provider Taps Into AI Infrastructure Boom

Hubbell Inc., a U.S. manufacturer of electrical components including wiring systems, power distribution devices, enclosures, and utility infrastructure, has traditionally served industrial and utility sectors. Today, it is gaining relevance through surging demand for hardware that supports power-intensive AI data center expansion.

In Q2, Hubbell posted net sales of $1.48 billion, a 2.2% increase year-over-year, with its Electrical Solutions segment growing 4%—driven by data center-related orders—and Utility Solutions up 1%, helped by a 7% rise in power grid infrastructure sales.

The company lifted its 2025 guidance, raising adjusted EPS to $17.65–$18.15 per share, above the prior range of $17.35–$17.85. Hubbell attributed the improved outlook to stronger demand for wiring, distribution and grid equipment tied to data center buildouts.

Together, these trends show how a traditional industrial firm like Hubbell is gaining relevance in the AI era—not by pivoting to AI itself, but by providing the physical infrastructure that enables it. The company’s upward guidance is a strong signal that AI is now influencing capital investment in energy and electrical sectors.

Enfabrica: Memory Innovation Aims to Cut AI Costs

Enfabrica, a Silicon Valley chip startup backed by Nvidia, introduced a new system called EMFASYS, designed to reduce reliance on high-bandwidth memory (HBM)—a costly bottleneck in AI hardware systems.

EMFASYS uses a custom chip and software platform to connect AI processors directly to lower-cost DDR5 memory, without sacrificing performance. This is especially important as AI models scale and memory costs account for a growing share of system budgets.

CEO Rochan Sankar said EMFASYS is already in use at three major cloud AI companies, positioning it not as a full replacement for HBM, but as a scalable complement that helps cut costs across broader infrastructure footprints.

What makes this significant is not just the cost savings, but the shift in architecture it represents. Enfabrica is targeting the “connective tissue” of AI infrastructure—how data moves between chips and memory at massive scale. As data centers become denser and more performance-intensive, solutions like EMFASYS can unlock both performance gains and capital efficiency.

In a market dominated by GPU headlines, Enfabrica’s debut is a reminder that networking and memory systems are becoming strategic battlegrounds in the AI arms race.

Q&A: Who’s Powering AI from Behind the Scenes?

Q: Why are Corning’s optical sales rising so fast?
A: AI data centers require massive high-speed connectivity between GPUs. Corning’s fiber systems are now critical infrastructure for AI workloads.

Q: How is Hubbell benefiting from AI?
A: Data center growth is driving demand for power distribution and electrical equipment, lifting Hubbell’s electrical solutions segment and profit outlook.

Q: What does Enfabrica’s EMFASYS system do?
A: It lets AI processors use cheaper DDR5 memory instead of expensive HBM, reducing costs without hurting performance.

Q: What does this mean for the broader economy?
A: AI’s growth is creating industrial demand beyond tech, from fiber optics to energy infrastructure—reshaping how and where capital is deployed.

What This Means

These stories tell a clear and important truth: AI isn’t just a software story—it’s an infrastructure story.

Corning, Hubbell, and Enfabrica aren’t AI startups or cloud platforms, yet all are seeing measurable business gains tied to the structural expansion of AI data centers. Their results reflect a broader trend: as AI reshapes computing, it is also reshaping manufacturing, power delivery, networking, and physical system design.

For investors, policymakers, and supply chain leaders, the message is clear: the rise of AI will not be contained within the tech sector. Its impact is industrial, architectural, and accelerating—and companies that once stood on the periphery of digital innovation may now find themselves at its very core.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.