11:19 AM EDT, 07/10/2024 (MT Newswires) -- Corning's (GLW) Q2 upside surprise performance is driven by enterprise sales in its Optical segment, particularly due to early orders to artificial intelligence data center customers, along with growth in other businesses, Oppenheimer said in a note Wednesday.

The firm said the company's management is confident in their "Springboard" framework, which projects significant sales growth over the next few years, bolstered by early sales from artificial intelligence data infrastructure investments.

Corning expects significant growth in both carrier and enterprise network sales, with new products for artificial intelligence and better capacity utilization enhancing profit margins in the Optical segment, Oppenheimer added.

The investment firm said that despite uncertainty from the loss of a currency hedge between US dollars and Japanese yen, there is confidence in the Corning's ability to increase display glass prices, which will support revenue growth.

Oppenheimer raised its price target on Corning's shares to $50 from $40 and reiterated its outperform rating.

Price: 44.97, Change: +0.30, Percent Change: +0.66