GLW
The AI story keeps getting better
Bank of America Securities analyst Wamsi Mohan stayed bullish on Corning and nudged the price target up to $243 from $223. That’s Wall Street-speak for: this thing still has room to run, and the AI buildout isn’t just a one-quarter sugar rush.
Optical is doing the heavy lifting
The big love here is Corning’s Optical Communications business, which BofA thinks is getting a nice tailwind from AI infrastructure spending. Think fiber, connectivity, and cabling — the unglamorous plumbing that becomes very glamorous when everyone is racing to wire up data centers.
BofA is modeling second-quarter revenue at $4.65 billion, a touch above Corning’s own guidance of about $4.6 billion. It also sees adjusted EPS of 76 cents, which sits near the top end of management’s 73-cent to 77-cent range. In other words, the analyst note is basically saying: the bar is set, and Corning looks ready to hop it.
Not everything is sparkling
There is a catch, because there usually is. BofA still sees Solar as a near-term headwind, with a wafer transition adding about $30 million of expense in the quarter. So yes, the AI side is hot, but the margin story still has a little mud on its boots.
What investors should watch next
The real test comes when Corning reports on July 28th. If Optical keeps flexing and Solar pressure starts easing, the market may keep rewarding the stock’s premium valuation instead of treating it like a fancy science project.
Big picture: Corning is looking less like a sleepy materials company and more like a behind-the-scenes AI infrastructure play — which is a very different kind of buzz.