Corning Stock Boosted by Apple’s $2.5 Billion Glass Plant Investment

Corning will now make all of the cover glass for iPhones and Apple Watches. (AFP via Getty Images)

Shares of Corning were rising Thursday after the glassmaker announced a $2.5 billion commitment from Apple to produce cover glass for mobile devices at its Harrodsburg, Ky., plant.

Corning will now make all of the cover glass for iPhones and Apple Watches at the facility—the first time 100% of the cover glass on these products will be made in the U.S., the companies said. Corning will dedicate the entire plant to manufacturing for Apple and expand its manufacturing and engineering workforce in Kentucky by 50%.

The announcement was part of Apple’s additional $100 billion investment in the U.S. that CEO Tim Cook unveiled at the White House with President Donald Trump on Wednesday.

Corning stock was rising 1.7% to $65.05 on Thursday.

Apple and Corning have worked together since the launch of the original iPhone in 2007, with Apple having invested nearly $500 million in the glass manufacturer’s Kentucky operations since 2017.

The latest news is a positive for Corning investors, but it wasn’t clear how much of an impact it will have on the company’s business, said Mizuho Securities analyst John Roberts.

Protective cover glass for mobile devices comprises around 8% of Corning sales, and Apple products are a fraction of that, Roberts noted. The companies’ announcement, he added, didn’t mention a time frame for the investment or the production of glass for larger devices like iPads.

“We view the announcement as positive for Corning’s valuation, but are not making any estimate changes yet,” Roberts wrote in a research note Thursday. “It’s also unclear if Corning has gained any new business, or production will just be rebalanced across other customers/applications/regions.”

Mizuho lifted its price target for Corning stock to $74 from $63 and reiterated an Outperform rating.

Write to Nate Wolf at nate.wolf@barrons.com