Corning stock surges thanks to AI boost for its optics business

Corning Inc (NYSE:GLW), which makes fiber-optics and hardened glass for iPhones, saw its stock nearly 10% higher on Monday, as it revealed an AI-driven boost to its financials.

The company, in a statement, raised market guidance for its second quarter.

It said it now expects core sales of $3.6 billion, up from $3.4 billion, whilst core earnings (per share) will come at the high end of or slightly above its prior guidance range of $0.42 to $0.46.

The expectation-beating performance comes from ‘strong adoption’ Corning’s new optical connectivity products being used to support generative AI computation.

“These results reinforce our confidence in ‘Springboard’ – Corning’s plan to add more than $3 billion in annualized sales in the next three years as cyclical factors and secular trends combine,” Corning chief executive Wendell Weeks said.

Corning’s ‘springboard’ strategy aims to grow sales by an extra $3 billion per year, over the next three years, by tapping into ‘cyclical factors and secular trends’.

It plans to convert the uptick in sales into “ powerful incremental profit and cash flow” given that Corning believes is already has the necessary production capacity and technical capabilities.

“We’ve positioned the company to capture significant growth with powerful incremental profit and cash flow. Because of our confidence in Springboard, we began buying back our shares in the second quarter,” Weeks said.

“We’re energized by the tremendous opportunity for value creation we’ve built for our shareholders.”

In New York, Corning stock was up $3.97 or 10.3% changing hands at $42.40.

At the end of this month, Corning will report its second-quarter earnings statement.