May 5 - GlobalFoundries, a specialty semiconductor manufacturer based in Malta, New York, projected second-quarter revenue that would exceed analysts' expectations, citing a pick-up in global data center deployments.
The company said it anticipates revenue for the quarter ending in June to be about $1.76 billion, plus or minus $25 million. That guidance compares with consensus estimates of $1.74 billion, based on data compiled by LSEG.
Market reaction was immediate: the company's shares rose 6% in premarket trading after the forecast was released.
GlobalFoundries reported first-quarter revenue of $1.63 billion, a figure the company said was in line with expectations. Management highlighted the firm's focus on select markets and technologies - notably radio-frequency chips and silicon photonics - as a key factor in its recent momentum. The company described silicon photonics as a rapidly expanding field with applications in artificial intelligence data centers and quantum computers.
"GF made significant traction in secular growth end markets where our differentiated technology drives share growth and outsized value creation," CEO Tim Breen said.
In addition to revenue guidance, the company provided adjusted earnings per share guidance of 43 cents, plus or minus 5 cents. That compares with analysts' expectations of 40 cents per share.
GlobalFoundries has previously highlighted that demand linked to data centers is among the tightest segments of the semiconductor market, noting strong visibility that extends well beyond typical cycles. The company attributes part of its improved outlook to that tightness and to the accelerated roll-out of relevant technologies.
The update underscores how demand from data center operators, together with growth in niche chip categories, is influencing near-term results for a specialty foundry positioned in those spaces. The company’s guidance range for both revenue and adjusted EPS indicates a degree of uncertainty around the midpoint, reflected in the stated plus-or-minus bands.
Investors and market observers will be watching whether the company sustains share gains in these specialized markets and whether the strong visibility tied to data center demand continues to support revenue beyond the current quarter.
Note: All numerical guidance and comparisons above reflect the company’s announcements and the referenced analyst estimates as compiled by LSEG.