GlobalFoundries Reports Resilient Demand with Q3 Earnings Beat, Shares Surge by 5%

Despite a decrease in net income and revenue, resilient demand and diversification away from China and Taiwan spark growth in GlobalFoundries' Q3 earnings, with analysts noting potential advantage in the automotive sector.

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.