GlobalFoundries (GFS, Financial), the world's third-largest contract chipmaker, is gaining ground in the semiconductor industry, with shares surging roughly 10% in premarket trading after announcing a strong fourth-quarter revenue forecast. Driven by a resurgence in demand for smartphones and AI-enabled devices, the company is well-positioned to capitalize on the expected holiday season rush, with support from key partners including Qualcomm (QCOM, Financial). Despite softness in IoT and automotive segments, GlobalFoundries' smart mobile devices market saw an impressive 11% quarterly revenue growth, pushing overall third-quarter revenue slightly above estimates at $1.74 billion.
In Q3, GlobalFoundries maintained solid financial performance, reporting a gross margin of 23.8% and a non-IFRS adjusted EBITDA of $627 million. CEO Dr. Thomas Caulfield highlighted the company's focus on strategic wins and forward-looking investments, affirming that GlobalFoundries is on track to triple its non-IFRS adjusted free cash flow by the end of 2024. These consistent results reflect the company's ability to navigate industry headwinds while leveraging a diverse product portfolio that serves the growing demand for essential semiconductor technologies.
GlobalFoundries' recent partnerships underscore its commitment to innovation and industry leadership. Collaborating with NXP Semiconductors (NXPI, Financial), GF will use its 22FDX platform to enhance NXP's automotive, IoT, and smart device solutions. Additionally, a new alliance with Finwave Semiconductor will bring cutting-edge GaN-on-Si technology to high-volume production in Vermont. As GlobalFoundries deepens its global reach, it remains a pivotal player in the race to bring “AI Everywhere,” further bolstering its growth trajectory in the tech-driven market.
