Shares of Corning (NYSE:GLW) surged over 5% in premarket trading Thursday following Apple’s (NASDAQ:AAPL) announcement of a major $2.5 billion investment to produce all of its iPhone and Apple Watch cover glass at Corning’s facility in Harrodsburg, Kentucky.
Bank of America (BofA) said the deal could unlock significant long-term gains for the glass manufacturer, noting, “This commitment strengthens GLW and Apple’s partnership, which can lead to incremental upside for Corning, specifically as Apple potentially launches a foldable iPhone in 2026.” The bank reiterated its Buy rating and raised its price target on Corning stock from $70 to $75.
The deal is part of Apple’s broader plan to invest $600 billion in U.S.-based operations and will support the development of the world’s largest smartphone glass production line. It will also fund a new Apple-Corning Innovation Center in Kentucky, and Corning’s workforce in the state is expected to expand by 50% as a result.
“With this new multibillion-dollar commitment from Apple and the lighting of our most advanced manufacturing platform, we are hiring more people and bringing 100 percent of Apple’s cover glass needs for iPhone and Apple Watch to the original home of the innovation,” said Wendell Weeks, Corning’s Chairman and CEO.
Apple CEO Tim Cook added, “The partnership underscores the power of American manufacturing.”
Corning has been Apple’s glass supplier since the first iPhone launched in 2007. Today, it provides the company with Ceramic Shield glass, which is featured in recent iPhone models.
BofA clarified that the $2.5 billion investment is a multi-year commitment aimed at both capital expenditures and research and development. It is not expected to significantly impact Corning’s capex forecasts for 2025 or 2026.
“Apple’s investment creates the opportunity for Corning to participate in the foldable cover glass market,” BofA noted, calling it a potential catalyst for Corning’s longer-term Springboard Plan.
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