- Corning has raised its second-quarter core sales forecast to $3.6 billion, up from the previous estimate of $3.4 billion.
- This optimistic revision highlights the crucial role of Corning’s optical solutions in meeting the growing demands of hyperscale data centres, essential for AI training.
OUR TAKE
Corning is not the sole company that benefited from the boom in AI technology. Foxconn, Samsung, and most corporations in the world are now gaining revenues from the tasty cake. It is instructive for corporations worldwide to reconsider their business blueprint to catch up with the trend.
–Ashley Wang, BTW reporter
What happened
Corning forecasts its second-quarter sales of $3.6 billion, better than its previous prediction of $3.4 billion. After the company’s adoption of its new optical connectivity products designed to support generative AI, shares of the specialty glass maker soared by more than 6% in premarket trading and culminated in a 12% increase by market close on Monday, breaking the stock’s best trading day since March 2020.
Corning, with its fibre optic solutions, helps companies transmit large amounts of data for training AI systems. The booming industry of generative AI, therefore, strongly encouraged investments in optical connectivity product providers like Corning. In addition to its optical connectivity success, Corning continues to be recognised for its durable Gorilla Glass, used in high-profile devices such as Apple and Samsung. The company had recently delivered coloured durable glass for the back of Apple’s iPhone 15 and iPhone 15 Plus devices.
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Why it’s important
This optimistic revision underscores the significant role of Corning’s optical solutions in meeting the rising demands of hyperscale data centres, which require high-capacity optic cables to facilitate the vast data transmissions essential for AI training. Corning’s fibre optic solutions are pivotal for companies needing to handle the massive data loads involved in generative AI processes. “We’ve invented new fibres, new cables, new connectors, and new custom integrated optical solutions to dramatically reduce installation costs, overall time, space, and carbon footprint,” said Corning CEO Wendell Weeks.
Corning will publicise its Q2 results on July 30, 2024. Its upward revision in sales expectations and the market’s response highlights the critical role of advanced optical connectivity in the evolving landscape of generative AI and data centre technology.
