Corning (NYSE: GLW) reported solid revenue and profit growth in its second-quarter earnings on Tuesday, alongside new supply agreements with Amazon and Nvidia. Despite these positive developments, the company's shares fell more than 18% on the day, closing at $143.36.

According to the earnings report, Corning's second-quarter GAAP sales reached $4.51 billion, up 17% year-over-year. Core sales totaled $4.74 billion, also a 17% increase, surpassing analysts' expectations of $4.62 billion. GAAP net income was $559 million, or $0.64 per share, while core earnings per share came in at $0.78, a 30% rise year-over-year and above the market consensus of $0.75.

By segment, the optical communications division remained the company's primary growth driver, with sales surging 32% year-over-year to $2.07 billion, fueled by hyperscale customers accelerating data center expansions to support generative artificial intelligence. The solar business delivered particularly strong performance, with sales jumping 90% year-over-year to $438 million. However, the life sciences and emerging growth businesses saw a 15% decline in sales, marking a weak spot.

Management provided an optimistic outlook for the third quarter, forecasting core sales between $4.9 billion and $5.0 billion, representing about 16% year-over-year growth, and core earnings per share ranging from $0.85 to $0.89, up roughly 28% from a year ago.

Despite the earnings beat, the market responded with a sell-off. Analysts suggested that the company's third-quarter revenue guidance fell short of investor expectations, which had been elevated by the AI boom. Additionally, competitive pressures Corning has faced recently, along with a broader sell-off in technology stocks, may have weighed on the share price. So far this year, Corning's stock has still gained about 58%.