GlobalFoundries Sees Strong Revenue Outlook as Data Center Demand Rises
GlobalFoundries' Financial Performance and Market Drivers
May 5 (Reuters) - Specialty chipmaker GlobalFoundries forecast second-quarter revenue above Wall Street expectations on Tuesday, driven by acceleration in data center deployments globally.
Shares of the company rose 6% in premarket trading.
Key Growth Areas and Market Focus
• The company has benefited from its focus on niches such as radio-frequency chips and silicon photonics — a rapidly expanding field finding use in artificial intelligence data centers and quantum computers.
Revenue Projections and Analyst Estimates
• GlobalFoundries expects revenue for the June ending quarter to be about $1.76 billion, plus or minus $25 million, compared with estimates of $1.74 billion, according to data compiled by LSEG.
• The Malta, New York-based semiconductor manufacturer reported revenue of $1.63 billion in the first quarter, in line with expectations.
Executive Insights and Market Trends
• "GF made significant traction in secular growth end markets where our differentiated technology drives share growth and outsized value creation," CEO Tim Breen said.
• The company had flagged earlier that demand tied to data centers is currently among the tightest segments in the semiconductor market, with strong visibility extending well beyond typical cycles.
Adjusted Earnings and Analyst Expectations
• On an adjusted basis, GlobalFoundries expects earnings per share of 43 cents, plus or minus 5 cents, while analysts expect 40 cents.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)
