Globalfoundries nasdaq Gfs Stock Fell Amidst Disappointing Q1 Forecast

GlobalFoundries (NASDAQ: GFS) Stock Fell Amidst Disappointing Q1 Forecast

GlobalFoundries (NASDAQ: GFS) stock fell on Tuesday after the chipmaker issued lower-than-expected financial guidance for the first quarter.

GlobalFoundries (GFS) has forecasted its first-quarter results to fall below Wall Street estimates. The contract chipmaker cites fierce competition from industry giants and a persistent supply glut in select semiconductor sectors as primary challenges.

According to data from LSEG, GlobalFoundries anticipates first-quarter revenue to range between $1.50 billion and $1.54 billion, notably lower than analysts’ average estimate of $1.76 billion.

The company faces stiff competition from industry titans like Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker.

Furthermore, GlobalFoundries expects adjusted profit per share for the first quarter to be between 18 and 28 cents, well below analysts’ estimates of 46 cents per share.

This news comes amidst a broader trend of weakness in the industrial sector and the onset of a chip inventory build-up in automotive manufacturing, as indicated by recent earnings reports from semiconductor firms.

Advanced Micro Devices (AMD), a key client and former parent company of GlobalFoundries, also projected lower-than-expected first-quarter revenue in January. The decline was particularly pronounced in AMD’s embedded segment, catering to automotive and industrial markets, which witnessed a 24% drop in revenue in the fourth quarter.


GFS stock dropped 2.08% to close at $54.66 on Tuesday. The traders had exchanged hands with 4,135,683 (4.13 million) shares compared to the average daily trading volume of 1.48 million.