Heading into the end of September on a bearish note, shares of Corning (GLW +2.01%) are tumbling lower. With an analyst taking a neutral stance on the tech stock, investors are sensing that today's a good time to click the sell button.
As of 3:00 p.m. ET, shares of Corning are down 3.1%.
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Networking stocks are poised to prosper due to AI spending
Initiating coverage with a sector perform rating, Bernstein analyst Daniel Zhu set a $140 price target on Corning stock. Based on Corning's closing price of $158.71 yesterday, Zhu's price target implies a 13.4% downside.
GLW Corning
NYSE · As of 4:00 PM ET 10/21/26
According to Thefly.com, Zhu broadly believes that the significant investments companies are making in developing artificial intelligence (AI) infrastructure will benefit companies specializing in networking and optical solutions, with demand outpacing supply.
The other catalyst for the tech stock's fall today may simply be that investors are taking profits after Corning stock soared yesterday following news that the company had secured a supply agreement with AT&T worth more than $3 billion.
Is Corning stock a buy on the analyst's bearish outlook?
While Zhu's $140 price target may be disappointing to current shareholders -- and potentially dissuade potential investors from starting a position -- it's critical to remember that this is merely one analyst's opinion. A leader in manufacturing optical fiber and specialized glass, Corning is at the forefront of providing materials used in various types of today's tech. Potential investors should therefore take the analyst's price target with a grain of salt and weigh the company's financial health more heavily -- a much better indicator of the stock's allure.
