(Reuters) -Contract chipmaker GlobalFoundries ( GFS ) forecast fourth-quarter profit and revenue above Wall Street estimates on Wednesday, driven by strong demand from its clients in the automotive and data center markets.
Shares of the Malta, New York-based GlobalFoundries ( GFS ) rose around 6% in premarket trading, after also topping expectations for third-quarter profit.
The company has seen higher demand for its made-to-order chips, as automakers focus on electric vehicles and advanced driver-assistance systems and as tech companies look to upgrade data center capacity to run their artificial intelligence models.
Automotive clients account for about 16% of the company's annual revenue on average, while communications, infrastructure and data center customers account for about 10.5%. Its biggest segment is smartphones, representing over 40% of revenue.
For the fourth quarter, GlobalFoundries ( GFS ) expects adjusted earnings of 47 cents per share, plus or minus 5 cents, compared with analysts' estimate of 46 cents per share, according to data compiled by LSEG.
It expects revenue of $1.80 billion, plus or minus 25 million, a touch above estimates of $1.79 billion.
One of the few large foundries with significant capacity outside China and Taiwan, GlobalFoundries ( GFS ) makes chips for companies including Advanced Micro Devices, Qualcomm, and NXP Semiconductors. It runs chip plants in Germany, Singapore, New York, and Vermont.
In recent weeks, the company has signed a technology licensing deal with larger peer TSMC, and announced a 1.1 billion euros expansion of its facility in Germany, backed partly by the German government.
For the quarter ended September 30, GlobalFoundries ( GFS ) reported earnings of 41 cents per share, topping estimates of 37 cents. Quarterly revenue of $1.69 billion edged past estimates of $1.68 billion.
Its shares have fallen nearly 19% this year, as of last close.
(Reporting by Arnav Mishra in Bengaluru; Editing by Sahal Muhammed) |
