NEW YORK, June 8, 2026, 15:09 EDT
Amazon.com traded lower Monday after shedding early gains, as a fresh multibillion-dollar deal with Corning threw the spotlight on the costs behind its AI data-center push. Shares were last down 0.6% at $244.50. Corning was up 6.3%.
Amazon is under pressure to show that more spending on AI hardware will drive growth at its cloud arm, Amazon Web Services, instead of just slowing cash flow. Optical fiber is key to this effort. The thin glass wires shuttle data at high speed, linking chips, servers and sites inside Amazon’s expanding data center network.
Amazon and Corning announced a multiyear agreement to supply optical fiber, cable and connectivity for Amazon’s growing U.S. data centers. The companies did not share financial details. Corning said the deal would add 1,000 jobs at its North Carolina plants and back a training program at Catawba Valley Community College.
AWS chief Matt Garman said the deal is “channeling investment into American manufacturing.” Corning CEO Wendell Weeks called it a “significant milestone” for the company. Amazon News
Corning got a stronger boost in the equity market. Its shares gained around 7% in early trade after Reuters said new orders had come in for its fiber optics business. Amazon shares barely moved as the move pointed to more spending.
Amazon moved with the broader market. U.S. stocks climbed Monday, snapping back in tech and chip stocks following a selloff on Friday. The Nasdaq gained 1.27% in morning trading. The Philadelphia Semiconductor Index surged 6.2%. Rick Meckler at Cherry Lane Investments said it was “bargain hunting” after last week’s tech slump. Reuters
Amazon’s softer action stood out as Nvidia added 1.9%. Meta and Alphabet slipped. Investors are pulling apart names supplying AI chips like Nvidia from those paying to build out AI.
The Corning deal adds Amazon to the list of big AI players looking to secure supply. Back in January, Corning signed a supply agreement with Meta for optical fiber, cable and connectivity gear, worth up to $6 billion. Reuters reported last month that Corning also partnered with Nvidia to boost U.S. fiber-optics manufacturing.
AWS growth is central for Amazon. Reuters said in April that AWS revenue was up 28% to $37.6 billion in Q1, ahead of forecasts. Amazon reported $44.2 billion in capital expenses for the quarter. CEO Andy Jassy said the $200 billion AI investment target for the year is unchanged.
Tech could run into trouble if the spending cycle pushes past demand or if higher rates start to weigh on big, long-term bets in the sector. Marc Velan at Lucerne Asset Management told Reuters the main thing to watch is if hyperscaler AI spending cools off—an issue hanging over Amazon, Alphabet and Meta as they all rush to scale up computing.
U.S. cash markets stayed open. Nasdaq’s normal hours are 9:30 a.m. to 4:00 p.m. Eastern, and June 8 is not a 2026 market holiday. Amazon’s late trade test: do investors care that the Corning deal helps with supply, or do they see it as another AI cost piling up?
