Corning Secures $40B in AI Deals; Amazon Plans $200B Spending

Key Takeaways

• Corning Q3 2026 core sales rose 19% to $5.08 billion, with Optical Communications up 44%
• Vertiv Q3 net sales surged 61.2% to $4.31 billion, beating estimates by 21.43%
• Amazon plans ~$200 billion in 2026 capital spending for AI infrastructure
• Microsoft Azure grew 43%; Alphabet fell nearly 10% after missing earnings estimates
• GitHub launched Copilot Fusion, auto-selecting the best AI model for coding tasks
• Etsy is cracking down on AI-generated listings while using AI to improve search
• TAO-ADCNN AI model assesses trade deal risk with 96%-98.9% accuracy
• B2TRADER added ChatGPT and Claude integration for trade execution
• ServiceNow AI growth is too small to boost overall revenue, Truist says
• Shopify and Dexcom are emerging AI winners outside the typical AI sector

Corning Q3 Sales Surge 19% on AI Optical Demand

Corning reported strong third-quarter 2026 results with core sales up 19% to $5.08 billion and earnings up 36% to 91 cents per share. Optical Communications sales jumped 44% to $2.38 billion, driven by AI data center demand. The company secured four long-term multibillion-dollar agreements with Verizon, AT&T, Meta, Amazon and NVIDIA. Core gross margin expanded 150 basis points to 40.5%, and management guided Q4 sales to $5.2-$5.3 billion.

Buy Corning on Strong Q3 Results and AI Photonics Growth

Corning's Q3 2026 performance was driven by Optical Communications revenue rising 44% to $2.38 billion, with Enterprise Networks sales up 84% to $1.53 billion. Generative AI product sales more than doubled as photonics technology addresses high-speed data transfer needs. The company secured multibillion-dollar agreements with Verizon, AT&T, NVIDIA, Amazon and Meta. Corning updated its Springboard plan targeting $40 billion annualized sales by 2030 and guided Q4 core earnings to 96 cents to $1 per share.

Vertiv Q3 Earnings Beat on Strong AI Data Center Demand

Vertiv reported Q3 2026 adjusted earnings of $2.21 per share, up 78% year over year, beating estimates by 21.43%. Net sales surged 61.2% to $4.31 billion, with organic sales up 55% and organic orders more than doubling. Americas sales rose 74.5% to $2.99 billion while Asia Pacific grew 49.9% to $779.3 million. The company is expanding manufacturing capacity and collaborating with NVIDIA, Dassault Systemes and Polar Data Centers on AI infrastructure deployment.

Vertiv Q3 Results Beat Estimates on Robust Growth

Vertiv posted Q3 2026 net sales of $4.31 billion, up 61.2% year over year, with product revenues rising 64.2% to $3.64 billion. Operating profit surged 90.4% to $983.8 million and adjusted operating margin expanded 290 basis points to 25.2%. Cash and equivalents totaled $3.51 billion as of September 30, 2026, while adjusted free cash flow rose 49.6% to $652.2 million. Management expects to double chiller production capacity by year-end and guided Q4 sales to $4.31-$4.51 billion.

Amazon vs Microsoft and Google on AI Investment Strategy

A bullish thesis highlights Amazon's shift toward higher-margin businesses like AWS, advertising and third-party services to drive AI-driven growth. AWS generated $45.6 billion in operating income in 2025 and its growth rate accelerated from 18% to 35%. Amazon plans capital spending of about $200 billion in 2026 for AI infrastructure, data centers and chips. The stock trades around 21 times earnings at $262 per share, with expected annualized returns of roughly 12.1%.

Microsoft leads Alphabet as AI spending divides investors

Microsoft and Alphabet both reported strong revenue, but investors reacted differently. Microsoft beat earnings expectations and rose 2.5% to 3%, while Alphabet fell nearly 10% after missing earnings estimates. Microsoft's Azure grew 43% and its AI investments are estimated to earn about 30% return on invested capital. Alphabet announced plans to increase capital spending in 2027, raising concerns about cash flow.

AI model identifies risky trade deals with high accuracy

Researchers created an AI system called TAO-ADCNN that checks international trade transactions for risk. It uses deep learning combined with a swarm optimization algorithm inspired by termite behavior. The model classified transactions as low, medium, or high risk with accuracy between 96% and 98.9%. The system uses IoT data like GPS tracking and sensor readings alongside financial information.

Court rejects RBC teller claim over AI unit idea

A Canadian appeals court rejected a former RBC teller's claim that he originated the bank's AI research unit. Sukhdev Krishan sued RBC in 2024, saying he contributed ideas that led to Borealis AI in 2016. The court found Krishan's job duties did not involve AI and his only proposed idea was about playing messages in the bank. The judge ruled there was no connection between Krishan's ideas and Borealis AI.

Etsy CEO targets AI listings as buyers return

Etsy's new CEO Kruti Patel Goyal is cracking down on AI-generated listings and mass-produced items. Quarterly active buyers increased for the first time in two years under her leadership. Active seller growth reached its highest level since 2024. Etsy is also using AI to improve search and help sellers with listings, inventory, and product promotion.

GitHub launches Copilot Fusion for AI coding

GitHub launched Copilot Fusion, a system that automatically picks the best AI model for coding tasks. It uses three modes: Single for straightforward work, Cascade for step-by-step problem solving, and Critique for multi-model review. Fusion is available in Visual Studio Code and selects models based on task complexity, system health, and subscription limits. The system coordinates existing models rather than introducing a new one.

Big Tech AI Hopes Fade as Stocks Face Uncertain Year-End

The S&P 500 is on pace for a modest October gain of 1%. Wall Street's hopes for a tech-led boost are fading as major companies fall short of expectations. The broader market is looking soft heading into the final months of the year. AI investment themes are losing some of their earlier appeal.

ServiceNow AI Growth Too Small to Boost Overall Revenue, Truist Says

ServiceNow is seeing accelerating momentum in artificial intelligence. However, Truist reports that this AI growth is still too small to significantly boost the company's overall revenue. The company's total growth has not yet been impacted by its AI progress. Investors are watching for future inflection points.

B2TRADER Adds ChatGPT and Claude for AI Trade Execution

B2BROKER Group added Model Context Protocol support and in-terminal AI chat to its B2TRADER platform. Traders can now connect external AI tools like Claude and ChatGPT for analysis and trade execution. Brokers set the level of access available to connected AI agents, from read-only to full trading permissions. The in-terminal chat uses the same system and requires confirmation for trading actions. B2BROKER expects the chat to reduce routine support enquiries.

Shopify and Dexcom Could Be Quiet AI Winners, Investors Say

Shopify and Dexcom are two companies outside the typical AI sector that are benefiting from artificial intelligence. Shopify's AI tools helped drive more traffic and improve conversion rates for merchants in the second quarter. Dexcom uses AI in its continuous glucose monitoring devices to help users analyze health data. Both companies have large addressable markets and strong long-term growth potential from AI integration.

Sources

• Corning Q3 Sales Jump 19% as AI Optical Demand and Margins Accelerate
• Buy Corning on Solid Q3 Earnings, Guidance and AI Photonics Space Rally
• Vertiv Q3 Earnings Beat on Robust Sales Growth and Strong AI Demand
• Vertiv Q3 Earnings Beat on Robust Sales Growth and Strong AI Demand
• Amazon (AMZN) vs. MSFT and GOOGL: Can Higher-Margin Businesses Turn Amazon Into an AI-Driven Compounder?
• Microsoft Vs. Alphabet: AI Spending Splits the Market
• AI Model Flags Risky International Trade Transactions With Up to 98.9% Accuracy
• RBC's AI unit was not teller's idea: court
• Etsy’s new CEO cracks down on AI listings—and buyers start to return
• GitHub Launches Copilot Fusion for Smarter and Cheaper AI Coding
• Big Tech’s AI Magic Is Fading, Putting Stocks on a Tricky Year-End Path
• ServiceNow's AI Momentum Still Too Small to Inflect Overall Growth, Truist Says
• B2TRADER Adds ChatGPT and Claude for AI Trade Execution, but Brokers Set the Limits
• 2 Stocks That Could Quietly Become Big Winners in the Artificial Intelligence (AI) Revolution