Cramer's Morning Take: Corning 10/28/25

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Jim Cramer (1:02)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

Jeff Marks (1:09)

Well, we are putting a little bit of money into our...

Jim Cramer (1:11)

Yes, we are, and I think in a great situation, we didn't put a lot on it initially because we had a feeling that it was up on a spike. We got some very good news here to be able to buy. I know that sounds contrary, but understand we're money managers, okay? We wanted to get in. We know that the stock, we didn't want to pay up because it's already up 79 percent, but tell us what they're saying in long term that makes us so that we're very attractive.

Jeff Marks (1:33)

Yeah, look, the results, it wasn't beat. Guidance for the fourth quarter was better than expected, so I think we should start there. Was the magnitude as big as some other quarters? Maybe not, but I think the key thing here is what's happening within optical communications. The sales wasn't missed, so I think that is why the stock was dinged. Although I should point out, it's off its worst.

Jim Cramer (1:53)

The new optical is very exciting.

Jeff Marks (1:55)

So sales to enterprise customers, right? So there's two divisions within the EU, enterprise and telecom, but enterprise, that's the sales that are inside the data center. Those were up 58% year over year in the third quarter, driven by strong adoption of their generative AI products. They're saying the big driver behind that is the scale out network, which basically means the hyperscale customers, they're scaling out their GPU customers, and they're connecting more and more of these nodes with Fiber. And the company is saying they expect demand for Fiber innovations to continue to accelerate it, because each node is connected by the Fiber, which is great for Corning. So there's momentum continuing here. They're working on formalizing customer agreements, which is great, that kind of de-risk things in the quarters and years ahead. So it was a good quarter from that aspect. Some other areas, special materials, the Apple business, that was better than expected.

Jim Cramer (2:53)

Right, I mean, I was down there looking down, but it's great. But when you speak to Wendell Weiss, what he says is, the data center burns too hot, and Fiber is the solution to the heat. The heat is a major problem, why you need so much power to air condition these places. And if you break open, if you strip out copper eventually, they have a long-term path to be able to have multiple years of possible upside surprises.

Jeff Marks (3:16)

Yeah, I mean, look, they're talking about the company laid out an expectations of a 30% compound annual growth rate for this business, and it's growing faster than that currently, and they do think demand will accelerate. So we put a half a percent of one position on at 85, rallied almost 90, now it's back down to 85 So we're just doubling up here.

Jim Cramer (3:38)

Yeah, and if it falls more, we'll buy, or if we get less overbought, we buy. Do I hope it gets back here? As a money manager, I say to myself, okay, I only have 1% in, okay? I want to have a three and a half, maybe 4% position. But obviously, I can't just take a three and a half, four positions right here. It's going to come down, I believe, and we're going to get opportunity. Now, no one's going to downgrade it because there's too much upside, and everybody knows that. But the reason why I only took a half percent is because we didn't think it would be a blowout quarter, but you had to feel like there's always a chance. But this is the kind of quarter I wanted to make a bigger position.

Jeff Marks (4:12)

Yeah, I saw Mizuho. They raised the price target this morning. I think it was the upper 90s, I think.