BofA/Citi: Corning Stock Plummets Nearly 20%, Two Major Banks Still Maintain Buy

According to TechFlow Research, Corning's stock price fell 19% in a single day on July 28. In the second quarter, Corning's revenue exceeded expectations, with the enterprise optical communications business growing 65%. The midpoint of third-quarter revenue guidance is $4.95 billion, slightly below market expectations. The market interpreted this guidance as a signal of a slowing pace of AI infrastructure investment. The year-over-year growth rate of the optical communications business decreased from 81% to 32% over three consecutive quarters. In a research report on July 28, Bank of America Securities lowered its target price from $243 to $200, maintaining a Buy rating. Citi Research lowered its target price from $240 to $220 on the same day, maintaining a Buy rating. Both institutions judged that the stock price decline was a valuation correction rather than a deterioration of fundamentals. Corning's long-term benefit from the structural demand for AI infrastructure remains unchanged, optical communications technology barriers still exist, and long-term supply agreements are becoming the ballast of the business. The target prices of the two institutions imply upside potentials of 67% and 83% relative to the current stock price, respectively.