The CPO BoM Has A Clear $GLW Message

Gaetano · Gaetano · June 18, 2026 at 17:48 · ⏱ 1 min read  | Read on Substack ↗
Summary
The article argues that the passive optical layer (fiber, connectors, cables) in co-packaged optics (CPO) systems represents a larger value pool than the market currently prices in, with a Goldman Sachs estimate showing over $21k per system for passive optical connectivity. Corning (GLW) is positioned as the key beneficiary due to its disclosed products, partnerships, and manufacturing expansion in this layer, making the CPO thematic a bullish driver for GLW beyond the more visible laser content.
  • •Goldman Sachs estimates single-mode fiber plus FAUs at roughly $15.9k per CPO system, and adding MPO connectors and cables pushes the passive optical connectivity bucket above $21k.
  • •The author emphasizes that CPO still requires physical optical infrastructure (fiber arrays, connectors, cables, trays, routing) beyond just lasers, and Corning sits squarely in that passive optical layer.
  • •Corning has disclosed products, partnerships, and manufacturing expansion across the passive optical layer required for CPO systems, which the author cites as a key reason for spending time on the name.
Read time 1 min
Length 1,593 chars
Category finance
Ideas
Gaetano Substack author, Gaetano
The article explicitly identifies Corning as the company positioned in the passive optical layer (fiber, connectors, cables) that CPO systems depend on, and notes the market may be underappreciating t
The article explicitly identifies Corning as the company positioned in the passive optical layer (fiber, connectors, cables) that CPO systems depend on, and notes the market may be underappreciating the value of this bucket. The author states 'that is where Corning sits, and that is one reason I have spent so much time on this name.' Risk: The supplier split in the disclosed architecture is undisclosed, so Corning's actual revenue capture per system is uncertain. The article is forward-looking and dependent on CPO adoption rates.
GLW
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This newsletter, published June 18, 2026, features Gaetano discussing GLW. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Gaetano  · Tickers: GLW