Corning shares surge by 12% due to increased demand driven by the AI boom.

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Corning equity sees a rise exceeding 12% on Monday following the company’s elevation of its second-quarter forecast, placing it on course for its most robust trading day since March 2020.

The organization, recognized for producing the Gorilla Glass utilized in Apple iPhones and other smartphones, attributes the outstanding performance to the demand for its optical connectivity products powering networks supporting generative artificial intelligence.

“We’ve introduced new fibers, cables, connectors, and tailored integrated optical solutions to significantly decrease installation expenses, overall time, space, and carbon footprint,” stated Corning CEO Wendell Weeks on good’s “Squawk Box.”

Corning anticipates second-quarter revenues of $3.6 billion, up from the previous projection of $3.4 billion. It also foresees earnings per share to reach “at the high end or slightly surpassing” the management’s forecasted range of 42 cents to 46 cents per share.

Weeks mentioned in a statement that the second-quarter earnings are also predicted to indicate a return to year-over-year expansion.

“These outcomes reinforce our faith in ‘Springboard’ — Corning’s strategy to add over $3 billion in yearly revenues in the next three years as both cyclical aspects and secular trends merge,” Weeks added.

The firm expects first-quarter sales, which dropped by 6% compared to the previous year, to be the lowest of the year. It predicts increased sales throughout 2024 due to improving market conditions.

Corning announced that it will disclose the second-quarter 2024 results on July 30, 2024.

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