The tech sector is known for the dominance of software and digital platforms.
This focus on computer “bits” enabled companies in the industry to build and distribute their offerings efficiently and cheaply, generating robust margins
However, the arrival of artificial intelligence (AI) has led to a twist in this story. Tech businesses are now increasingly spending on “atoms,” the label describing capital-intensive physical assets such as data centers, where AI systems are housed. This industry shift is exemplified in AI tech titan Nvidia’s recently announced partnership with glassmaker Corning (NYSE: GLW).
The deal demonstrates Corning’s ability to see substantial business growth ahead. Wall Street was sleeping on tech’s swing from bits to atoms, but is now waking up to Corning’s shift from a slow-growth producer of glass products into an AI company. Here’s a deeper look into Corning.