Overview

• GlobalFoundries reported Q3 earnings with adjusted EPS of $0.55, beating analyst forecasts, despite a 26% decrease in net income and 11% decline in revenue to $1.85 billion.
• Analysts from Wedbush indicate that GlobalFoundries could have an advantage in the automotive sector due to diversification efforts away from China and Taiwan amid chip restrictions, and a ramp into automotive space.
• The US government provided $35 million in funding for GlobalFoundries' Vermont semiconductor manufacturing facility, which aims to produce gallium nitride chips for use in aerospace and defense, cellular communications, industrial IoT, and automobiles.
• CEO Thomas Caulfield noted that although the global economic and geopolitical landscape remains uncertain, they are working closely with customers to support efforts to reduce inventory levels and grow long-term partnerships for innovation and differentiation in essential markets.
• GlobalFoundries projects Q4 adjusted earnings of $0.53 to $0.64 and revenue of $1.83 billion to $1.88 billion, in line with analyst estimates.