Corning tumbles 16% after earnings, leading rout in optic…

Corning's shares dropped 16% after its second-quarter earnings report, impacting other optical component companies in the AI sector. Despite exceeding earnings expectations with 78 cents per share and revenue of $4.74 billion, Corning's future revenue forecasts fell short of Wall Street expectations, predicting a range of $4.9 to $5 billion, below the consensus of $5 billion. The decline was the largest since October 2002, affecting stocks like Marvell and Lumentum, which also saw significant losses. Corning's networking solutions are critical for AI data centers, evidenced by a recent multi-year deal with Amazon.

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Key Points

Shares of Corning fell after the company reported second-quarter earnings, dragging down other optical component names in the AI space.
The stock is on pace for its worst day since October 8, 2002, when it fell 17.3%.
Marvell, Lumentum, AXT and Coherent were down double digits following the print.

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CHINA - JUNE 17: A man works Thursday, June 17, 2004 in the Beijing office of Corning International which imports fiber-optic products from the U.S. to China.

Ricky Wong | Bloomberg | Getty Images

Shares of glassware maker Corning dove 16% on Tuesday after the company reported its second-quarter earnings, dragging down other optical component names in the artificial intelligence space.

Despite the company posting a beat on the top and bottom lines, revenue forecasts for the current quarter fell below Wall Street's consensus. The company expects core revenue to grow 16%, a range of $4.9 billion to $5 billion. Factset expected $5 billion.

Corning reported earnings per share before the bell on Tuesday of 78 cents versus estimates of 76 cents. Revenue came in at $4.74 billion, also topping the Street's estimates of $4.61 billion.

The stock is on pace for its worst day since October 8, 2002, when it fell 17.3%.

Shares of other optical component names like Marvell, Lumentum, AXT and Coherent were down double digits following the print.

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Five-day stock chart of Corning.

Corning's networking solutions and fiber optic cable have become a growing portion of the AI data center buildout, since their equipment enables fast connections between the facilities and the racks and chips inside.

In June, Corning inked its latest multi-year deal to power and connect Amazon's expanding fleet of data centers, one in a string of billion-dollar deals it's inked in recent months as hyperscalers and other AI companies race to meet their skyrocketing demand for computing power.

CNBC's Katie Tarasov contributed to this report.

Corning tumbles 16% after earnings, leading rout in optical stocks

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