Corning Raises Guidance on Generative AI Boost, Stock Soars

Corning, the specialty glass maker, has raised its current-quarter outlook, causing its stock to rise over 9%. The company now expects its earnings per share (EPS) to be at the high end or slightly above its previous estimate, with revenue up by $200 million. The boost in guidance is attributed to the increasing demand for Corning's products used in generative artificial intelligence (AI) applications. CEO Wendell Weeks stated that the gains were primarily driven by the strong adoption of their new optical connectivity products for Generative AI. Corning anticipates incremental gains in profit and cash flow and believes that the first quarter will be the lowest this year. The company is scheduled to report its second-quarter numbers on July 30th. [5e9ab1c9]

Corning shares surged 12% as the AI boom led to stronger-than-expected demand for equipment. The company expects second-quarter sales of $3.6 billion, up from previous guidance of $3.4 billion, and earnings per share to be at the high end or slightly above the guided range of 42 cents to 46 cents per share. Corning CEO Wendell Weeks attributed the outperformance to the demand for optical connectivity products that power generative networks. The company anticipates higher sales throughout 2024 due to improving market conditions and will report second-quarter 2024 results on July 30, 2024. [91abe7f1]