3M Expands AI Data Center Push With New Optical Connectivity Partnership

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3M Company (NYSE: MMM) joined a new industry group developing open standards for optical connectivity used in AI infrastructure. AI Infrastructure Connectivity Initiative

3M joined companies, including Advanced Micro Devices Inc (NASDAQ: AMD), Cisco Systems Inc (NASDAQ: CSCO), Meta Platforms Inc (NASDAQ: META), Oracle Corp (NYSE:ORCL), Arista Networks Inc (NYSE: ANET), Molex, TE Connectivity Plc (NYSE: TEL), and Sumitomo, in a new multi-source agreement (MSA) focused on expanded beam optical (EBO) connectivity.

The group will collaborate on interoperable specifications for EBO connector solutions designed for AI data centers.

Focus On Standardization and Scalability

The initiative aims to support high-performance optical interconnects, reduce deployment complexity and accelerate scaling of hyperscale and enterprise AI infrastructure.

The initial technical working group has already begun developing its first connector specification.

3M said expanded beam optical technology offers advantages in reliability, maintenance and performance in high-density environments. The MSA is also open to additional members across the data center and networking ecosystem.

Executive Commentary and Strategy

"As AI workloads scale, the physical layer of data centers is being pushed to new limits - requiring optical connectivity solutions that are not only high-performance, but also interoperable and scalable across a growing ecosystem," said Alex An, vice president of 3M's data center vertical.

3M said the initiative aligns with its broader data center strategy focused on connectivity, heat and power management, and resilient infrastructure solutions.

MMM Technical Analysis: Trend, Momentum, and Key Levels

3M's stock has been trending downward, currently sitting at $142.16, which is 5.41% lower over the past 12 months.

The stock is trading 3% below its 20-day simple moving average (SMA) of $146.57 and 4% below its 50-day SMA of $148.19, indicating a bearish trend.

The moving average convergence divergence (MACD) is below its signal line, suggesting momentum is fading and may limit any upside unless the stock can reclaim that baseline.

  • Key Resistance: $158.50 - Nearby level where rebounds can stall.
  • Key Support: $141.50 - Nearby level where buyers previously stepped in.
3M Earnings Preview: Next Update Date and Analyst Estimates

3M Company is slated to provide its next financial update on July 17 (estimated).

  • EPS Estimate: $2.23 (Up from $2.16)
  • Revenue Estimate: $6.38 billion (Up from $6.16 billion)
  • Valuation: P/E of 27.6x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Hold rating with a consensus price target of $155. Recent analyst moves include:

  • Wells Fargo: Overweight (Raises target to $165 on April 22)
  • RBC Capital: Underperform (Lowers target to $133 on April 22)
  • Citigroup: Neutral (Lowers target to $166 on April 13)
How 3M Ranks On Value, Growth, Quality and Momentum

Below is the Benzinga Edge scorecard for 3M, highlighting its strengths and weaknesses compared to the broader market:

  • Value: Weak (Score: 27.54) - Trading at a steep premium relative to peers.
  • Growth: Neutral (Score: 53.64) - Moderate growth potential in current market conditions.
  • Quality: Strong (Score: 75.41) - Solid fundamentals and operational efficiency.
  • Momentum: Weak (Score: 13.5) - Stock is underperforming the broader market.
The Verdict: 3M's Benzinga Edge signal showed strong quality metrics but weak momentum and value rankings, pointing to solid fundamentals amid softer stock performance.

MMM Stock Price Activity: 3M shares were down 0.45% at $142.70 at the time of publication on Tuesday, according to Benzinga Pro data.