Corning (GLW) is getting a strong read through from Nvidia's (NVDA) Q4 results, UBS Securities said in a Thursday note.

"NVDA reporting last night provided a strong read across to GLW with top line beats in both JanQ and MarQ guide, which is largely supportive of our near term 2026 estimates," the report said.

Still, the note said longer term estimates were revised down to reflect a more conservative view on the ramp of co-packaged optics/scale up fiber in 2027/28.

"We found our prior estimates were likely overstating the scale up sales potential, at least during the initial ramp," it added.

UBS lowered its 2027 and 2028 sales and earnings per share estimates for Corning, but said it still expects substantial growth that would outperform industrial tech peers through 2029.

"We also expect there will continue to be more positive revisions with AI hyperscaler capex updates, NVDA chip mix updates, and some layering in of scale up fiber in 2027/2028+," the note said.

UBS raised its price target on Corning to $171 from $160 and kept its buy rating.