Corning shares pop 12% as AI boom drives stronger-than-expected demand for equipment

Corning shares are up more than 12% Monday after the company raised its second-quarter guidance, setting it on track for its best trading day since March 2020.

The company, known for developing the Gorilla Glass used for Apple iPhones and other phones, credits the outperformance to demand for its optical connectivity products that power networks that run generative artificial intelligence.

"We've invented new fibers, new cables, new connectors and new custom integrated optical solutions to dramatically reduce installation costs, overall time and space and carbon footprint," Corning CEO Wendell Weeks said on CNBC's "Squawk Box."

Corning expects second-quarter sales of $3.6 billion, up from previous guidance of $3.4 billion. It also expects earnings per share to be "at the high end or slightly above" management's guided range of 42 cents to 46 cents per share.

Weeks said in a release that second-quarter earnings are also expected to mark a return to year-over-year growth.

"These results reinforce our confidence in 'Springboard' — Corning's plan to add more than $3 billion in annualized sales in the next three years as cyclical factors and secular trends combine," Weeks added. 

The company expects first-quarter sales, which declined 6% year over year, to be the lowest of the year. It anticipates higher sales throughout 2024 due to improving market conditions.

Corning said it will report second-quarter 2024 results on July 30, 2024.