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.
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.
