Corning raises second-quarter core sales forecast driven by AI boom

A screen displays the logo for Corning Inc. at the NYSE in New York

(Reuters) -Corning raised its second-quarter core sales forecast on Monday, as demand for its fiber optic products surges with the rising adoption of generative AI technology, sending the specialty glass maker's shares up more than 9%.

Corning's fiber optic solutions help companies transmit massive amounts of data needed for training AI systems. Hyperscale data centers require high-capacity optic cables to interconnect the facilities that may house storage devices and other infrastructure for their operations.

New York-based Corning now expects core sales to be about $3.6 billion for the second quarter, compared with its previous forecast of about $3.4 billion. Analysts expect core sales of $3.41 billion, according to LSEG data.

The company, which makes Gorilla Glass used in smartphones by companies such as Samsung Electronics and Apple, will report its second-quarter results on July 30.

Corning had delivered durable glass with infused color for the back of Apple's iPhone 15 and iPhone 15 Plus devices.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)