Skip NavigationMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting Club
PRO
LivestreamMenu
- Shares of Corning fell after the company reported second-quarter earnings, dragging down other optical component names in the AI space.
- The stock was on pace for its worst day since July 30, 2002.
- Marvell, Lumentum, AXT and Coherent were down double digits following the print.
CHINA – JUNE 17: A man works Thursday, June 17, 2004 in the Beijing office of Corning International which imports fiber-optic products from the U.S. to China. Ricky Wong | Bloomberg | Getty Images
Shares of glassware maker Corning dove 18% on Tuesday after the company reported its second-quarter earnings, dragging down other optical component names in the artificial intelligence space.
Despite the company posting a beat on the top and bottom lines, revenue forecasts for the current quarter fell below Wall Street’s consensus. The company expects core revenue to grow 16%, a range of $4.9 billion to $5 billion. Factset expected $5 billion.
Corning reported earnings per share before the bell on Tuesday of 78 cents versus estimates of 76 cents. Revenue came in at $4.74 billion, also topping the Street’s estimates of $4.61 billion.
The stock was on pace for its worst day since July 30, 2002, when it fell 21.59%.
Shares of other optical component names like Marvell, Lumentum, AXT and Coherent were down double digits following the print.
Stock Chart IconStock chart icon
Five-day stock chart of Corning.
Corning’s networking solutions and fiber optic cable have become a growing portion of the AI data center buildout, since their equipment enables fast connections between the facilities and the racks and chips inside.
In June, Corning inked its latest multi-year deal to power and connect Amazon’s expanding fleet of data centers, one in a string of billion-dollar deals it’s inked in recent months as hyperscalers and other AI companies race to meet their skyrocketing demand for computing power.
CNBC’s Katie Tarasov contributed to this report.
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.Read More
About The Author
