Corning shares GLW jumped 4% on Wednesday after Jefferies sees strong growth prospects for the company due to high fiber optics demand from AI data centers.
The brokerage initiated coverage on the stock with a “buy” rating and a target price of $134. The target price indicates a 19% upside for the stock from Tuesday’s price level.
According to the investment firm, Corning’s position in the fiber optics market, along with its multi-year agreement with major customers, would provide support as these companies expand their AI infrastructure.
Most analysts remained divided on the stock before this update, even as the company reported strong growth in its recent Q3 results.
AI data centre demand supports Jefferies’ bullish outlook
Jefferies expects demand from hyperscalers and telecommunications carriers to support Corning’s growth over the coming years.
The firm highlighted the company’s multi-year contracts with these customers as an important source of visibility for its business.
The investment firm expects Corning’s Optical business to begin scaling up in 2028, as fiber technology becomes increasingly integrated into data-centre equipment rather than being used primarily to connect machines.
Growth in the Enterprise and Carrier segments is also expected to help the company move towards its 2030 targets, according to Jefferies.
However, the firm expects a more gradual expansion in Corning’s Photonics business.
It identified clearer progress in next-generation pluggable optics and co-packaged optics as a key catalyst for the stock.
These technologies are attracting attention as data-centre operators look for ways to improve connectivity and support increasingly demanding computing workloads.
Wall Street remains divided on the stock
Before Jefferies gave a positive affirmation to the stock, other analysts were cautious on the stock.
Bernstein lowered its price target on Corning to $120 from $140 on Tuesday while maintaining a Market Perform rating.
The stock fell approximately 3% that session amid broader market weakness following hotter-than-expected US inflation data.
Other investment firms have also reduced their targets following Corning’s third-quarter results.
UBS lowered its price target to $192, while Truist Securities cut its target to $175.
Both firms maintained Buy ratings.
Morgan Stanley reduced its target to $155 and retained an Equalweight rating, citing the introduction of additional optical capacity.
Strong third-quarter results provide support
Corning reported adjusted earnings of $0.91 per share for the third quarter of 2026, exceeding analysts’ expectations of $0.88.
Revenue increased approximately 19% year over year to $5.08 billion, compared with forecasts of $5.03 billion.
Growth in optical communications contributed to the stronger performance, alongside improved margins.
The results have supported expectations that Corning could benefit from rising investment in data-centre infrastructure, although analysts differ on how quickly that demand will translate into earnings growth.
According to Koyfin, the average 12-month price target for Corning stands at $177.35, implying approximately 58% upside from Tuesday’s closing price.
Of the 18 analysts covering the stock, 14 have Buy or Strong Buy ratings, while the remaining four rate it Hold.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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