What Happened?
Shares of glass and electronic component manufacturer Corning (NYSE: GLW) jumped 16.6% in the afternoon session after it unveiled a multiyear agreement worth up to six billion dollars hours before its scheduled earnings report.
Executives detailed how the company would supply the optical fiber and cabling necessary to wire Meta's next generation of artificial intelligence data centers. Investors viewed this contract not merely as a revenue boost, but as the definitive validation of the long-awaited supercycle in fiber optics. To fulfill the colossal order, the company pledged to expand its manufacturing operations in Hickory, North Carolina. CEO Wendell Weeks described the hyperscalers as the company's most critical growth engine.
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What Is The Market Telling Us
Corning’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Corning and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 3.8% on the news that BofA raised its price target on the company's shares to $110 from $95 while keeping a Buy rating.
The positive analyst note came ahead of the company's scheduled fourth-quarter results. In the preview, the firm pointed to Apple's expected foldable device launch as a potential positive for Corning's future business. The analyst specifically mentioned that this development could provide incremental color on the company's Optical, Solar, and Specialty segments. The updated price target reflected a more optimistic outlook on the stock's potential.
Corning is up 22.1% since the beginning of the year, and at $110.71 per share, has set a new 52-week high. Investors who bought $1,000 worth of Corning’s shares 5 years ago would now be looking at an investment worth $3,142.
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