Morgan Stanley said Corning will remain a long-term beneficiary of scale-up optics, as data centers increasingly switch from copper to fiber-optic-based networking.

  • Last week, JPMorgan added Corning to its "Negative Catalyst Watch" over valuation concerns.
  • Fiscal AI has polled second-quarter consensus estimates of $0.75 in earnings per share on revenue of $4.63 billion.
  • Koyfin data shows that Wall Street is largely bullish on the stock, with 11 out of 16 analysts covering GLW rating it a ‘Buy’ and the rest ‘Hold.’

Morgan Stanley on Tuesday continued to maintain its ‘Equal Weight’ rating on Gorilla Glass maker Corning (GLW) and provided fresh commentary ahead of the company’s second quarter results.

Corning’s Big Picture Scenario Still Intact

The firm said Corning will remain a long-term beneficiary of scale-up optics, as data centers increasingly switch from copper to fiber-optic-based networking, but expects second-quarter (Q2) revenue upside opportunity to be "modest" as sold-out conditions limit revenue growth from the optical products segment, according to a report from TheFly.

Morgan Stanley reportedly said it does not necessarily expect the upcoming results to be a large catalyst for GLW stock, but noted the chatter surrounding the company’s margins and optical sales ramp-up for the third quarter.

The company is expected to report Q2 results on July 28. Fiscal AI has polled consensus estimates of $0.75 in earnings per share on revenue of $4.63 billion. Koyfin data shows that Wall Street is largely bullish on the stock, with 11 out of 16 analysts covering GLW rating it a ‘Buy’ and the rest ‘Hold.’

Wall Street Action On GLW

During the month, at least four analysts hiked their price targets on the GLW stock. Bank of America recently justified its bull case on the company, citing strong optical demand from AI infrastructure buildout, coupled with longer-term optionality from advances in semiconductor packaging, TheFly reported.

JPMorgan, on the other hand, added the company to its "Negative Catalyst Watch" last week over valuation.

"We are placing shares of GLW on the Negative Catalyst Watch as shares have proven more resilient in the current backdrop, which, at 30x+ on CY28 (implying a multiple of ~40x for the optical business), leaves little room for error into the print. We still expect a strong Optical-Enterprise result, but we suspect it will be somewhat balanced by below-seasonal Optical-Carrier following a solid C1Q26,” analyst Joseph Cardoso said in a note, which was seen by Seeking Alpha.

On Stocktwits, retail sentiment toward GLW remained in ‘bearish’ territory over the last 24 hours. GLW stock has gained over 87% so far this year and has more than tripled in value over the past 12 months, outperforming the S&P 500.

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