GlobalFoundries Surpasses Q2 Revenue Forecasts Amid Strong AI Chip Demand
GlobalFoundries Q2 2024 Financial Performance and Market Drivers
Revenue and Earnings Overview
Aug 5 (Reuters) - GlobalFoundries reported second-quarter revenue above Wall Street estimates on Wednesday, as growing demand for its chips used in data centers boosted sales.
- GlobalFoundries makes specialty chips for communications, data centers, automotive, industrial and consumer electronics companies.
- The company reported second-quarter revenue of $1.79 billion; analysts on average estimated $1.77 billion, according to data compiled by LSEG.
- Adjusted diluted earnings per share came in at 46 cents, above analysts' estimate of 44 cents.
AI Infrastructure and Silicon Photonics Demand
Spending on artificial intelligence infrastructure has increased demand for its silicon photonics chips, which use light instead of electrical signals to move data faster inside AI data centers.
Outlook and Forecast
The specialty chip maker forecast third-quarter revenue of $1.89 billion, plus or minus $25 million, roughly in line with analysts' estimate of $1.88 billion.
Cash Flow and Financial Health
Adjusted free cash flow was negative $3 million, compared with positive $277 million a year earlier.
Legal Developments
In March, Global Foundries sued Israel-based rival Tower Semiconductor alleging the Israeli chipmaker infringed 11 patents related to manufacturing chips used in smartphones and other electronics.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Joyjeet Das)
