GlobalFoundries Forecasts Strong Q4 Revenue

(Reuters) – The world’s third-largest contract chipmaker, GlobalFoundries (NASDAQ: GFS), forecasted fourth-quarter revenue exceeding Wall Street estimates on Tuesday. This positive outlook is driven by a resurgence in semiconductor demand from smartphone manufacturers, leading to a nearly 10% increase in shares during premarket trading.

Based in New York, the company has experienced heightened demand from its smart mobile devices segment, which is helping to balance out weaknesses in the Home, Industrial Internet of Things (IoT), and automotive markets.

According to Research firm IDC, global smartphone shipments rose 4% year-on-year, reaching 316.1 million units in the third quarter, despite challenging economic conditions.

Qualcomm (NASDAQ: QCOM), a key supplier to Apple (NASDAQ: AAPL) and one of GlobalFoundries' largest customers, is expected to benefit from anticipated demand for AI-enabled iPhones during the upcoming holiday season.

GlobalFoundries forecasts fourth-quarter revenue between $1.80 billion and $1.85 billion, in line with estimates of $1.80 billion, based on data compiled by LSEG. The company reported $1.74 billion in revenue for the third quarter, slightly exceeding expectations of $1.73 billion.

The surge in its smart mobile devices end-market saw an 11% rise in quarterly revenue, amounting to $868 million in the reported quarter.

The company projects adjusted profit per share in the range of 39 cents to 51 cents for the fourth quarter, surpassing estimates of 37 cents. It reported an adjusted profit of 41 cents per share in the third quarter, ahead of predictions of 33 cents per share.