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Investing.com -- Corning shares have jumped more than 5% premarket on Thursday after Apple (NASDAQ:AAPL) unveiled a $2.5 billion commitment to produce 100% of the cover glass for iPhones and Apple Watches at Corning’s facility in Harrodsburg, Kentucky.
The move, Bank of America said, can drive “future upside” for the glassmaker.
“This commitment strengthens GLW and Apple’s partnership, which can lead to incremental upside for Corning (NYSE:GLW), specifically as Apple potentially launches a foldable iPhone in 2026,” BofA analysts wrote in a note, reiterating a Buy rating and raising their price target for Corning from $70 to $75.
The deal, part of Apple’s broader $600 billion U.S. investment plan, includes the construction of the world’s largest smartphone glass production line and a new Apple-Corning Innovation Center in Kentucky.
Corning’s local workforce will grow 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 Corning CEO Wendell Weeks.
Apple CEO Tim Cook added that the partnership underscores “the power of American manufacturing.”
Corning has supplied Apple with glass since the original iPhone in 2007 and currently produces Ceramic Shield glass.
According to BofA, the $2.5 billion commitment is a multi-year investment for capital expenditure and R&D, and is not expected to materially affect Corning’s 2025 or 2026 capex.
“Apple’s investment creates the opportunity for Corning to participate in the foldable cover glass market,” BofA said, calling it potential upside to Corning’s Springboard Plan.