SILICON VALLEY, Calif. and MALTA, N.Y., Sept. 09, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) and Silicon Catalyst, the world's only incubator+accelerator focused exclusively on semiconductor solutions, today announced that GF has joined the incubator's semiconductor startup ecosystem as a Strategic Partner and an In-Kind Partner (IKP). The partnership will provide innovative startups with access to GF's differentiated platforms to speed the development and commercialization of next generati ...

SANTA CLARA, Calif., Aug. 28, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) will kick off its annual Technology Summit series tomorrow, highlighting the critical role of GF-made essential chips in accelerating the impact and ubiquity of artificial intelligence. The theme of "AI Everywhere" will connect the keynotes, panel discussions and deep-dive sessions of GF's annual technology-focused event, which brings together leaders from across the semiconductor industry to share insights on the late ...

GlobalFoundries Inc. (GFS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 increased sequentially to $1.632 billion, exceeding the midpoint of guidance, but decreased by 12% year-over-year due to lower shipments and utilization levels [12][24] - Non-IFRS gross margin was reported at 25.2%, above the midpoint of guidance [12][29] - Non-IFRS diluted earnings per share were $0.38, exceeding the high end of guidance [12][30] - Cash flow generation for the first half of 2024 was over $500 million, on track to achieve approximately three times the amount of 2023 non-IFRS adjusted free cash flow by the end of 2024 [13][33] Business Line Data and Key Metrics Changes - Smart mobile devices accounted for approximately 47% of total revenue, with a 12% sequential increase but a 3% decrease year-over-year [25] - Automotive revenue grew approximately 2% sequentially and 10% year-over-year, representing about 17% of total revenue [27] - Home and industrial IoT markets represented 18% of total revenue, with a 5% sequential decrease and a 28% year-over-year decline [26] - Communications infrastructure and data center segment revenue increased 28% sequentially but declined 27% year-over-year [28] Market Data and Key Metrics Changes - The demand outlook is improving across certain end markets, particularly in automotive and smart mobile devices, as channel inventory levels normalize [6][14] - The automotive sector is highlighted as a growth area, with significant revenue growth expected for 2024 [27] - The IoT market is experiencing high inventory levels, contributing to revenue declines, but long-term opportunities remain [18][26] Company Strategy and Development Direction - The acquisition of Tagore Technologies' gallium nitride power business aims to enhance capabilities in power applications and expand the serviceable addressable market by approximately $1.6 billion by 2030 [9][11] - The company is focused on modernizing manufacturing capabilities and investing in R&D to support GaN manufacturing capacity over the next two to three years [10][11] - Long-term strategy includes positioning for high-volume manufacturing of critical technologies in power applications and serving as a trusted manufacturing partner [11] Management's Comments on Operating Environment and Future Outlook - Management believes the first quarter of 2024 was the low point for revenue, with expectations for sequential growth in subsequent quarters [7][24] - The company is optimistic about the recovery in the automotive sector and anticipates growth in smart mobile devices as inventory levels normalize [14][45] - Management acknowledges macroeconomic factors affecting consumer spending, particularly in the US and China, which may impact future demand [38] Other Important Information - The company expects total revenue for Q3 2024 to be between $1.7 billion and $1.75 billion, with gross profit guidance between $391 million and $438 million [32] - CapEx for 2024 is maintained at approximately $700 million, focusing on innovation and differentiation rather than increasing overall capacity [33][64] Q&A Session Summary Question: Insights on customer conversations regarding inventory correction and demand - Management indicated that while some end markets are still working through inventory corrections, automotive remains a bright spot with meaningful growth opportunities [36][45] Question: Quality of earnings and cash flow expectations - The company noted that free cash flow is expected to remain strong due to previous investments in capacity and customer prepayments [40][41] Question: Revenue outlook for Q3 and Q4 - Management confirmed expectations for sequential revenue growth in Q3 and Q4, driven by recovery in smart mobile devices and continued strength in automotive [44][45] Question: Gross margin trends and factors affecting them - Management explained that low utilization rates are impacting gross margins, but improvements are expected as utilization increases [47][48] Question: Long-term agreements and customer interest - Management stated that long-term agreements remain important, especially in markets with long product cycles like automotive [67][69]

GlobalFoundries Inc. (GFS) reported $1.63 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 11.5%. EPS of $0.38 for the same period compares to $0.53 a year ago. The reported revenue represents a surprise of +0.89% over the Zacks Consensus Estimate of $1.62 billion. With the consensus EPS estimate being $0.29, the EPS surprise was +31.03%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

GlobalFoundries Inc. (GFS) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 31.03%. A quarter ago, it was expected that this company would post earnings of $0.23 per share when it actually produced earnings of $0.31, delivering a surprise of 34.78%. Over the last four quarters, the co ...

GlobalFoundries Inc. TABLE OF CONTENTS Unaudited Financial Statements Page | --- | --- | |----------------------------------------------------------------------------------------|-------| | | | | | | | Interim Condensed Consolidated Statements of Financial Position | 2 | | Interim Condensed Consolidated Statements of Operations | 3 | | Interim Condensed Consolidated Statements of Comprehensive Income (Loss) | 4 | | Interim Condensed Consolidated Statements of Changes in Equity | 5 | | Interim Condensed Cons ...

Company Overview - GlobalFoundries Inc. (GFS) shares increased by 6.8% to close at $58.13, with notable trading volume compared to typical sessions, and a 7.1% gain over the past four weeks [1] - The company's rally is attributed to its U.S. manufacturing capabilities, which support domestic chip production amid rising geopolitical tensions and trade restrictions on China [1] Earnings Expectations - GlobalFoundries is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year decline of 45.3%, with revenues projected at $1.62 billion, down 12.3% from the previous year [2] - The consensus EPS estimate for GlobalFoundries has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - GlobalFoundries is part of the Zacks Electronics - Semiconductors industry, where another company, FormFactor (FORM), saw its stock drop by 8.1% to $57.15, with a 3.6% return over the past month [3] - FormFactor's consensus EPS estimate is $0.31, representing a significant increase of 121.4% from the previous year, with its Zacks Rank also at 3 (Hold) [4]

Core Viewpoint - GlobalFoundries (NASDAQ:GFS) experienced a significant stock increase of approximately 10% due to comments from former President Donald Trump, suggesting that a shift towards isolationist policies may enhance domestic chip production and benefit GFS stock [1][5]. Company Overview - GlobalFoundries, based in Malta, New York, manufactures a variety of semiconductor devices, including microprocessors and power management units. A potential shift in U.S. semiconductor policy aimed at supporting domestic businesses could lead to increased market share for GFS [2]. Geopolitical Context - Trump's remarks indicated that Taiwan has taken a substantial portion of the U.S. chip business, which has geopolitical implications, especially concerning U.S.-China relations over Taiwan [3]. Taiwan is noted to produce over 90% of advanced chips, highlighting its critical role in the semiconductor supply chain [4]. Domestic Policy Impact - The disruptions during the Covid-19 pandemic have intensified the focus on diversifying global semiconductor supply chains. A conservative administration prioritizing domestic chip production could positively impact GFS stock [5]. The Biden administration has also initiated programs to support the U.S. semiconductor industry, with GlobalFoundries receiving awards under the Chips Act [6]. Financial Performance - GFS stock has shown lackluster performance over the past five years, with a total gain of about 20%. Analysts project a revenue decline for the current fiscal year, estimating it to reach $6.72 billion, which represents a 9.1% decrease from the previous year's revenue of $7.39 billion [7]. Even the optimistic revenue estimate of $7.17 billion falls short of expectations [8].

Group 1: Semiconductor Market Overview - Semiconductor stocks are experiencing significant declines, with Taiwan Semiconductor Manufacturing (TSMC) shares falling over 7% due to concerns about potential U.S. government interference in the chip market [1] - GlobalFoundries, in contrast, is seeing a positive performance, with its stock up 7% amid these market dynamics [5] Group 2: Political Implications - Former President Trump has suggested that if reelected, he may seek to reduce U.S. dependence on Taiwanese chips and could impose tariffs on chips sold by TSMC [2] - Trump's recent comments about Taiwan's dominance in contract chip manufacturing have raised concerns among TSMC investors while boosting sentiment for GlobalFoundries [6] Group 3: Company Comparisons - GlobalFoundries has a higher price-to-earnings ratio of 33.5 compared to TSMC's 31.1, but it has a lower gross profit margin of 28% versus TSMC's 53.6% [4] - GlobalFoundries has a slower growth rate of 10% compared to TSMC's 21.5%, indicating that TSMC is currently a stronger semiconductor stock [4][9] Group 4: Market Positioning - GlobalFoundries is positioned to benefit from any U.S. government animosity towards Taiwan, as it conducts most of its business in the U.S. and has 40% of its production assets located there [6][8] - A minimal portion of GlobalFoundries' $7.4 billion in annual sales comes from China, insulating it from potential tariffs on companies selling to China [8]