Cornings stock price surges by 12 as artificial intelligence boom drives strongerthanexpected equipment demand

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06:05 Corning CEO Wendell Weeks on raising second-quarter guidance: Seeing convergence of cyclical and long-term trends Squawk Box
Corning’s stock price rose more than 12% on Monday after the company raised its second-quarter guidance, potentially bringing the best trading day since March 2020. The company is known for developing Gorilla Glass for Apple’s iPhone and other smartphones, and attributes its strong performance to the demand for its optical connectivity products that power networks running artificial intelligence. “We’ve invented new fibers, new cables, new connectors and new custom integrated optical solutions to dramatically reduce installation costs, overall time and space, and carbon footprint,” said Corning CEO Wendell Weeks on CNBC’s “Squawk Box.” Corning expects second-quarter sales to be $3.6 billion, higher than the previous $3.4 billion. The company also anticipates earnings per share to be “at the high end or slightly above” the management’s guidance range of $0.42 to $0.46 per share. Weeks stated in a press release that the second-quarter earnings are also expected to mark a rebound in year-over-year growth. Weeks added, “These results enhance our confidence in the ‘Springboard’ – the combination of cyclical factors and long-term trends – that Corning plans to increase annual sales by over $3 billion in the next three years.” The company expects first-quarter sales to be the lowest this year, with a 6% year-over-year decline. Due to improved market conditions, the company forecasts higher sales for the full year of 2024. Corning announced that its second-quarter performance for 2024 will be released on July 30, 2024.
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17:16 Why the U.S. is seeing a boom in fiber technology.