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

What the report says

CNBC reported that Corning shares fell sharply Tuesday after the glass and optical technology company released second-quarter results, setting off a broader sell-off in optical-component stocks tied to artificial intelligence infrastructure. The CNBC headline described Corning as tumbling 16%, while the article text said the stock was down 12% during Tuesday trading after the earnings release.

The drop came even though Corning beat analyst expectations for the quarter. CNBC reported earnings per share of 78 cents, ahead of the 76 cents expected, and revenue of $4.74 billion, above Wall Street estimates of $4.61 billion. The pressure instead centered on the company’s outlook: Corning projected core revenue growth of 16% for the current quarter, with revenue in a range of $4.9 billion to $5 billion, while FactSet consensus stood at $5 billion.

The sell-off spread to other names in the optical and networking supply chain. CNBC said Marvell, Lumentum, AXT and Coherent all posted double-digit declines following Corning’s report, with AXT and Coherent each losing 10%.

The move matters because Corning’s fiber-optic cable and networking solutions have become part of the buildout of AI data centers, where high-speed connections are needed between facilities, racks and chips. CNBC noted that Corning signed a multiyear agreement in June to help power and connect Amazon’s expanding data-center fleet, amid a wider race by hyperscalers and AI companies to add computing capacity.