GlobalFoundries forecasts upbeat second quarter on data center demand

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May 5 : Specialty chipmaker GlobalFoundries forecast second-quarter revenue above Wall Street expectations on Tuesday, driven by acceleration in data center deployments globally.

Shares of the company rose 6 per cent in premarket trading.

• The company has benefited from its focus on niches such as radio-frequency chips and silicon photonics — a rapidly expanding field finding use in artificial intelligence data centers and quantum computers.

• GlobalFoundries expects revenue for the June ending quarter to be about $1.76 billion, plus or minus $25 million, compared with estimates of $1.74 billion, according to data compiled by LSEG.

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• The Malta, New York-based semiconductor manufacturer reported revenue of $1.63 billion in the first quarter, in line with expectations.

• "GF made significant traction in secular growth end markets where our differentiated technology drives share growth and outsized value creation," CEO Tim Breen said.

• The company had flagged earlier that demand tied to data centers is currently among the tightest segments in the semiconductor market, with strong visibility extending well beyond typical cycles.

• On an adjusted basis, GlobalFoundries expects earnings per share of 43 cents, plus or minus 5 cents, while analysts expect 40 cents.

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