Corning Incorporated shares surged approximately 7% during Monday's trading session, reaching a record high near $130.90 after touching an intraday peak of $132.17. The rally extends the stock's strong performance in early 2026, pushing it into uncharted territory following its first record close since the dot-com era last Friday.
AI and Data Center Expansion Drive Momentum
The company's optical fiber and connectivity segments, which represent nearly 40% of Corning's revenue, are positioned at the center of artificial intelligence-driven data center expansion. Management has highlighted strengthening orders tied to robust computing needs and increased data flows, with demand patterns showing significant, though sometimes unpredictable, growth cycles that can sustain for years once projects commence.
Major Meta Agreement and Financial Performance
In late January, Corning secured a multiyear supply agreement with Meta Platforms that could generate up to $6 billion through 2030. CEO Wendell Weeks described the partnership as strengthening domestic supply chains for advanced U.S. data centers. This follows Corning's fourth-quarter results showing core sales of $4.41 billion and core earnings per share of $0.72. For the current quarter, the company projects core sales between $4.2 billion and $4.3 billion with core EPS expected in the $0.66 to $0.70 range.
Trading volume exceeded 12 million shares by mid-afternoon Monday, with the stock moving from an opening price of $124 before settling near session highs. Analyst sentiment has turned increasingly positive, with UBS raising its price target to $125 from $109 in late January, citing potential for additional optical agreements following the Meta deal.
Potential Risks and Macro Considerations
While Corning benefits from its positioning in AI infrastructure, the stock remains vulnerable to potential slowdowns in cloud spending or consumer electronics demand for glass and displays. A regulatory filing on Monday indicated a shareholder plans to sell 15,000 shares through UBS Financial Services, a routine disclosure that often precedes actual stock sales.
Market attention now shifts to macroeconomic indicators that could influence momentum stocks sensitive to interest rate expectations. The Labor Department will release January employment data on February 11, followed by Consumer Price Index figures for January on February 13, both of which could significantly impact market sentiment.
