New Corning Price Target After $6 Billion Meta Announcement
Corning and its old-school partner Alcoa are riding a wave of AI and data center infrastructure spending.
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When you think of technology and data centers, you probably think of names like Nvidia (NVDA) , Broadcom (AVGO) and Advanced Micro Devices (AMD) . Those three companies create the chips that are critical for AI computing.
You’re unlikely to think of a company that became a component of the Dow Jones Industrial Average in 1959, and was removed from that index in 2013. You’re even less likely to think of a company that originated in 1851, and was listed on the New York Stock Exchange in 1968.
But shares of both of those companies broke out to major new highs this week. I’m speaking of old-school industrial names Alcoa (AA) and Corning (GLW) .
Fiber Optics to Move Information
Last month, I recommended buying Corning on a pullback to its 50-day moving average (blue). Corning finally cooperated on March 30 (arrow). Since then, the stock has soared from $126 to $162, a gain of over 28% in less than two weeks.
Corning is now up 78% year to date. Shares of the Corning, New York-based provider of optical networking and specialty glass traded at an all-time high on Wednesday.
Corning has formed an A-B-C-D pattern. This is an old-school technical pattern that projects future price action, and suggests a price target of $195 for Corning. The company’s next earnings report is scheduled for May 5.
Earlier this year, Corning announced a $6 billion agreement with Meta Platforms (META) , which will use Corning’s fiber-optic technology in its data centers. Corning also has a long-standing deal with Apple (AAPL) , to produce cover glass for iPhones, Watches, and other products.
Aluminum for Data Center Infrastructure
Meanwhile, Pittsburgh-based Alcoa closed at a 20-year high on Tuesday. The aluminum products provider has now gained nearly 27% year to date, and nearly 82% since we first recommended this "sneaky AI play" in October
On April 1, Corning broke out of a three-month long consolidation pattern (shaded yellow). That pattern offers nearby support in the $68 area. Based on this pattern, our new target for Alcoa is $82.
Alcoa is seeing increased demand for aluminum, which is used in EV production as well as data center infrastructure. The company is also benefiting from increased demand due to high tariffs on imported aluminum. Alcoa is scheduled to report earnings after the close on April 16.
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At the time of publication, Ponsi was long AA, GLW, AMD, NVDA and AVGO.
