Jim Cramer Advises Against Buying Corning Stock

CNBC host Jim Cramer has shifted his investment stance on Corning Incorporated, advising investors to avoid buying the stock at current levels. While he previously praised the glass technology manufacturer for its partnership with Apple and its potential to replace copper with glass in data centers, Cramer stated on September 15 that he wants to wait for the stock price to drop further.

This cautious approach follows a period of volatility and a $2 billion equity raise by Corning, which triggered investor concerns regarding a potential slowdown in the enterprise sector. Despite these worries, Corning reported strong second-quarter growth in its solar and optical communications businesses, with enterprise sales increasing 65% annually to $1.27 billion.

However, the company's CFO warned that the smartphone business is expected to be weaker in the second half of the year. This projected decline is attributed to AI-driven memory price increases, which are expected to impact demand.