Corning’s Stock Soars 12% Following Nvidia Partnership & Revenue Forecast Increase

TLDR

• Corning and Nvidia have revealed a multi-year collaboration to boost U.S. manufacturing of optical connectivity and fiber for artificial intelligence data centers.
• Corning plans to expand its optical manufacturing capacity by ten times and boost fiber output by over 50%, involving three new plants in North Carolina and Texas.
• Nvidia was granted warrants to acquire up to 18 million Corning shares, with a total value of $500 million.
• Corning’s stock price climbed 12% on the announcement, and Nvidia’s shares increased by approximately 5.8%.
• Corning has elevated its long-term sales goal to $35 billion by 2030, a significant increase from a prior target of $27 billion for 2028.

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(SeaPRwire) –   Corning (GLW) started Wednesday on a high note. The manufacturer of glass and fiber optics saw its stock price leap more than 12% to approximately $185 following the simultaneous announcement of a significant partnership with Nvidia and an upward revision of its long-term revenue goals.

Corning Incorporated, GLW

The companies announced they are entering into a multi-year agreement to scale up U.S. production of fiber and optical connectivity solutions for AI infrastructure. This move represents a strategic wager on the substantial and increasing need for data transfer within and among AI data centers.

As part of the agreement, Corning will expand its optical manufacturing capacity by a factor of ten and increase its fiber production by more than half. The plan includes constructing three new advanced manufacturing sites in North Carolina and Texas, which is estimated to generate about 3,000 new jobs.

Nvidia obtained a warrant to buy as many as 15 million Corning shares priced at $180 per share, along with a pre-funded warrant to purchase up to 3 million shares at $0.0001 each. The overall investment is valued at $500 million.

Nvidia’s stock was up about 5.8% for the day.

Nvidia CEO Jensen Huang described the partnership as a “once-in-a-generation opportunity to reinvigorate American manufacturing.” He further stated that the companies are “inventing the future of computing with advanced optical technologies.”

Revenue Targets Get a Major Upgrade

The announcement of the Nvidia deal coincided with a substantial update to Corning’s growth strategy. The company now anticipates achieving $20 billion in annualized sales by the conclusion of 2026. This figure equates to a 15% compound annual growth rate starting from the fourth quarter of 2023.

Beyond that, Corning forecasts a 19% annual sales growth rate from the fourth quarter of 2026 through 2030, at which point it projects reaching $35 billion in annualized revenue.

The target for 2028 was also increased to $27 billion, up from an $11 billion boost the company had projected in January. Corning stated it is now aiming for a $17 billion rise from its 2023 baseline.

CFO Ed Schlesinger stated the company intends to “continue growing free cash flow while investing to capture growth,” noting that investment risk will be mitigated through long-term agreements with customers.

These updated targets were unveiled at an investor event conducted at the New York Stock Exchange on Wednesday.

Q1 Results Also Beat Expectations

Corning also reported robust earnings for the first quarter of 2026. The company announced earnings per share of $0.70, narrowly exceeding the $0.69 consensus forecast. Revenue totaled $4.35 billion, surpassing expectations of $4.29 billion. The Optical Communications segment was the primary driver of this stronger-than-expected performance.

Corning also announced a quarterly dividend of $0.28 per share, scheduled for payment on June 29, 2026, to shareholders recorded as of May 29.

According to InvestingPro data, five analysts have recently raised their earnings estimates, indicating heightened confidence leading up to this week’s news.

Before Wednesday’s trading, Corning’s stock had already skyrocketed 268% over the preceding year, with revenue over the last twelve months amounting to $16.32 billion.

Other companies in the optical networking sector experienced varied performance. Ciena rose 6.1% and Coherent advanced 3.5%, whereas Lumentum dropped 6.1% after reporting mixed third-quarter earnings.