Shares of Corning (NYSE:GLW), a manufacturer of glass and electronic components, experienced a significant increase of 16.6% during the afternoon session following the announcement of a multiyear agreement potentially worth up to $6 billion. This development came just hours before the company was set to release its earnings report.
The agreement, which involves supplying optical fiber and cabling essential for Meta’s upcoming artificial intelligence data centers, has been viewed by investors as a key endorsement of the expected supercycle in fiber optics. To accommodate this large-scale order, Corning plans to expand its manufacturing capabilities in Hickory, North Carolina. CEO Wendell Weeks highlighted that hyperscale data centers represent a vital source of growth for the company.
In terms of market volatility, Corning’s stock has shown relative stability, recording only six movements exceeding 5% over the past year. Such significant fluctuations are uncommon, indicating that recent news has substantially influenced market sentiment regarding Corning’s prospects.
Notably, just 12 days prior to this jump, Corning’s shares rose by 3.8% following a positive update from Bank of America, which raised its price target for the company’s stock from $95 to $110 while maintaining a Buy rating. This upgrade came in anticipation of the company’s fourth-quarter results and cited Apple’s potential release of a foldable device as a future growth driver for Corning’s Optical, Solar, and Specialty segments. The new price target reflects a more optimistic view of the stock’s potential.
Year-to-date, Corning’s shares have appreciated by 22.1%, reaching a new 52-week high at $110.71. This performance means that investors who purchased $1,000 of Corning shares five years ago could see their investment valued around $3,142 today.
As the fiber optics market expands, with companies like Microsoft and Alphabet having emerged from similar growth trajectories, there is a considerable sense of optimism around Corning as it positions itself as a key player in the evolving tech landscape.