Corning Incorporated (NYSE: GLW) saw its shares climb approximately 4% on Wednesday after Jefferies initiated coverage with a Buy rating and a price target of $134, implying a 19% upside from the prior session's close. The brokerage's bullish stance is anchored on expectations of robust demand for fiber optics from AI data centers, a segment that has become a focal point for investors seeking exposure to the artificial intelligence infrastructure buildout.
Jefferies Highlights AI Data Center Demand
Jefferies analysts believe that Corning's strategic position in the fiber optics market, combined with multi-year agreements with major customers, will underpin growth as these companies expand their AI infrastructure. The firm specifically pointed to demand from hyperscalers and telecommunications carriers as key drivers over the coming years. These long-term contracts provide revenue visibility, which is particularly valuable in a market where capital expenditure cycles can be volatile.
The brokerage expects Corning's Optical business to begin scaling up in 2028, as fiber technology becomes more deeply integrated into data-center equipment rather than being used solely to connect machines. This shift is anticipated to open new avenues for growth, alongside contributions from the Enterprise and Carrier segments, which should help the company progress toward its 2030 targets. However, Jefferies anticipates a more gradual expansion in Corning's Photonics business, identifying clearer progress in next-generation pluggable optics and co-packaged optics as a key catalyst for the stock. These technologies are gaining attention as data-center operators seek to improve connectivity and support increasingly demanding computing workloads.
Wall Street Remains Divided
Prior to Jefferies' positive initiation, other analysts had expressed caution. 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 firms have also trimmed their targets following Corning's third-quarter results: UBS reduced its target to $192, Truist Securities cut its to $175, and Morgan Stanley lowered its to $155, with the latter retaining an Equalweight rating due to 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, surpassing 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. These results have reinforced expectations that Corning could benefit from rising investment in data-center 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.
This article is for informational purposes only and does not constitute financial advice.
