Corning's AI Opportunity Is Only Getting Started: Analyst

Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on Corning Inc. (NYSE: GLW ) and raised the price forecast to $243 from $223, implying about 23.5% upside from the stock’s $196.79 price on July 6.

Mohan expects Corning’s second-quarter results to reinforce confidence in a stronger second half, with Optical Communications driving revenue and earnings at or above guidance.

BofA projects second-quarter revenue of $4.65 billion, above Corning’s guidance of about $4.6 billion.

It also expects adjusted EPS of 76 cents, near the high end of the company’s 73-cent to 77-cent guidance range.

Optical Communications Mohan identified Optical Communications as Corning’s key growth driver, supported by demand for AI infrastructure.

He said Corning is benefiting from scale-up, scale-out, and scale-across AI buildout trends, particularly in fiber, connectivity, and cabling.

BofA projects second-quarter Optical revenue of $2.05 billion, up 30.7% year over year.

Within the segment, Enterprise revenue is expected to rise 45% to $1.12 billion, while Carrier revenue is projected to increase 17% to $932 million.

Lumen Technologies Mohan said demand tied to Lumen Technologies Inc. (NYSE: LUMN ), data-center interconnect activity, and fiber-to-the-home projects should support Carrier momentum.

That support should continue even after stronger first-quarter activity pulled some seasonal demand forward.

Solar And Glass Businesses BofA identified Solar as Corning’s main near-term headwind.

Mohan expects a wafer transition to add about $30 million in second-quarter expense, pressuring margins before the drag eases in the second half.

In Glass Innovations, BofA expects mid-single-digit sequential and year-over-year growth, led by Specialty Materials.

Mohan also sees longer-term upside from GlassBridge technology and future glass substrate opportunities tied to advanced semiconductor packaging around 2029 to 2030.

Financial Forecasts And Valuation BofA raised its 2028 EPS estimate to $6.50 from $5.95 and lifted its 2027 EPS estimate to $5.00 from $4.99.

The firm now models revenue of $19.32 billion in 2026, $24.88 billion in 2027, and $30.57 billion in 2028.

BofA values Corning at 37 times its 2028 EPS estimate.

Mohan said the premium multiple reflects recoveries in Display, Environmental, and Specialty, as well as multiyear growth in Optical from hyperscalers and generative AI demand.

For the third quarter, BofA expects Corning to guide for revenue of about $5.2 billion and EPS of 87 cents to 91 cents.

The outlook reflects Enterprise growth, steadier Carrier revenue, and easing Solar-related pressure.

Corning Technical Analysis Corning remains in a solid long-term uptrend.

The stock trades about 5.3% above its 50-day simple moving average of $189.18, 19.4% above its 100-day SMA of $166.82 and 55.9% above its 200-day SMA of $127.81.

The moving averages also remain in a bullish alignment, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA.

In the near term, shares are trading close to the 20-day SMA of $199.25.

That level could act as an important support or resistance point.

Meanwhile, the 20-day exponential moving average of $205.61 sits above the current price, suggesting short-term momentum has eased.

The relative strength index stands at 49.22.

An RSI near 50 signals neutral momentum and suggests the stock is consolidating rather than becoming overbought or oversold.

Traders are watching nearby technical levels after the stock reached a new 52-week high in June.

Key resistance: $208.50 Key support: $172.50 Corning Earnings And Analyst Outlook The company’s next earnings report is expected on July 28.

Wall Street expects earnings of 75 cents per share, up from 60 cents a year earlier.

Revenue is projected to increase to $4.62 billion from $4.04 billion.

Corning trades at a price-to-earnings ratio of 94.6, reflecting a premium valuation.

Analysts maintain a consensus Buy rating with an average price forecast of $206.60.

Recent analyst actions include: Bank of America: Buy; raised price forecast to $243 on July 6.

Mizuho: Outperform; raised price forecast to $270 on July 1.