Jefferies Initiates Corning at Buy With $134 Target on AI Fiber Demand, Shares Jump 4%

Corning shares surged roughly 4% on Wednesday after Jefferies initiated coverage with a Buy rating and a $134 price target, citing strong growth prospects tied to surging fiber optic demand from AI data centers. The initiation was among the most closely watched analyst calls of the day, alongside notes on Nvidia, Apple, and CoreWeave.

Jefferies pointed to AI-driven fiber shortages and multiyear deals with hyperscalers and carriers as the primary growth catalysts. The firm sees near-term upside in Corning's Carrier segment as data center interconnect scales, with fiber inside AI systems expected to become a meaningful contributor from 2028 onward. Photonics, the firm noted, may ramp more slowly, but Enterprise and Carrier segment strength is seen as sufficient to support Corning's 2030 financial targets.

The move higher came after a difficult stretch for the stock, which had fallen approximately 28% over the prior month, prompting questions about whether shares had become undervalued. Wednesday's rally, which outpaced broader sector competitors, reflected a broader AI infrastructure recovery day that also lifted Nvidia by more than 5% pre-market following CoreWeave's strong quarterly results and raised full-year guidance.