Corning (GLW) Surges 2.85% on AI Data Center Hype and Analyst Optimism

Summary
• Corning (GLW) trades at $87.66, up 2.85% intraday, hitting a high of $87.75 and low of $84.45.
• Jim Cramer reaffirms bullish stance, citing GLW’s role in AI data centers and onshoring trends.
• Citi raises price target to $102 from $99, signaling strong conviction in long-term potential.

Corning’s sharp intraday rally reflects a confluence of analyst optimism, sector tailwinds, and strategic positioning in AI infrastructure. With data center capital expenditures surging 59% in Q3 2025, GLW’s fiber-optic expertise aligns with global demand for high-speed connectivity. The stock’s 2.85% gain underscores investor confidence in its ability to capitalize on AI-driven infrastructure growth.

AI Infrastructure and Analyst Hype Fuel GLW’s Rally
Corning’s intraday surge is driven by two key catalysts: renewed analyst enthusiasm and sector-specific tailwinds. Jim Cramer’s recent commentary highlighted GLW’s critical role in AI data centers, emphasizing its partnerships and onshoring advantages. Simultaneously, Citi’s upgraded price target to $102 (from $99) signals institutional confidence in the stock’s long-term trajectory. These factors, combined with broader sector momentum—evidenced by a 59% year-over-year increase in data center capex—have propelled GLW to its current level. The stock’s 52-week high of $96.64 remains a psychological hurdle, but the current trajectory suggests a retesting of that level is likely.

Communication Equipment Sector Gains Momentum Amid AI Infrastructure Boom
The Communication Equipment sector is experiencing robust growth, driven by AI infrastructure demand and 5G expansion. Corning’s 2.85% gain outperforms its sector leader, Cisco (CSCO), which trades down 0.68% intraday. This divergence highlights GLW’s unique positioning in high-margin AI-related markets. While Cisco focuses on traditional networking, Corning’s hollow-core fiber and data center solutions align with next-generation infrastructure needs, making it a more speculative play for investors targeting AI-driven growth.

Options and ETF Strategy for GLW’s AI-Driven Momentum
• 200-day MA: $66.55 (well below current price)
• RSI: 44.33 (neutral, suggesting potential for further upside)
• MACD: 0.17 (bullish divergence with signal line at 0.71)
• Bollinger Bands: Upper at $93.10, Middle at $88.42, Lower at $83.74 (price near upper band)

GLW’s technicals suggest a continuation of its bullish trend, with key support at $83.74 and resistance at $93.10. The stock’s 52-week high of $96.64 remains a critical target. For options traders, the GLW20260116C82 and GLW20260116P82.5 contracts stand out due to their high leverage ratios and favorable Greeks. These options offer asymmetric risk-reward profiles for both bullish and bearish scenarios.

• GLW20260116C82 (Call):
- Strike: $82, Expiry: 2026-01-16
- IV: 43.22% (moderate)
- Delta: 0.9073 (high)
- Theta: -0.4819 (rapid time decay)
- Gamma: 0.0374 (moderate sensitivity)
- Turnover: 5,160 (liquid)
- Leverage Ratio: 16.97% (high potential for capital efficiency)
- Payoff (5% upside): $5.83 (max(0, 91.99 - 82))
- Why it stands out: High delta ensures strong participation in upward moves, while moderate IV and liquidity make it a viable short-term play.

• GLW20260116P82.5 (Put):
- Strike: $82.5, Expiry: 2026-01-16
- IV: 45.61% (moderate)
- Delta: -0.1261 (moderate bearish exposure)
- Theta: -0.0308 (slow time decay)
- Gamma: 0.0443 (high sensitivity to price swings)
- Turnover: 2,484 (liquid)
- Leverage Ratio: 291.80% (extreme capital efficiency)
- Payoff (5% upside): $0.00 (max(0, 82.5 - 91.99))
- Why it stands out: High leverage ratio and gamma make it ideal for hedging against volatility, though its delta suggests limited downside protection.

Trading Insight: Aggressive bulls should consider GLW20260116C82 for a leveraged bet on a $93.10 breakout, while cautious investors may use GLW20260116P82.5 to hedge against a pullback to $83.74.

Backtest Corning Stock Performance
The backtest of GLW's performance after a 3% intraday surge from 2022 to now shows favorable results. The 3-day win rate is 54.41%, the 10-day win rate is 60.15%, and the 30-day win rate is 59.96%, indicating that GLW tends to experience positive returns in the short term following the intraday surge. The maximum return during the backtest period was 6.34%, which occurred on day 59, suggesting that there is potential for significant gains if the surge is capitalized upon promptly.

GLW’s AI-Driven Momentum: A High-Conviction Trade for 2026
Corning’s intraday rally is a testament to its strategic positioning in the AI infrastructure boom. With Citi’s $102 price target and sector tailwinds, the stock is well-positioned to test its 52-week high. Investors should monitor the $83.74 support level and the $93.10 resistance zone. For context, sector leader Cisco (CSCO) trades down 0.68% intraday, underscoring GLW’s outperformance. Action: Consider a bullish bias with GLW20260116C82 for a leveraged play, but keep a close eye on the $83.74 level to avoid a potential reversal.