GlobalFoundries tops second quarter estimates on AI chip demand
GlobalFoundries tops second quarter estimates on AI chip demand Aug 5 (Reuters) - GlobalFoundries GFS.O reported second-quarter revenue above Wall Street estimates on Wednesday, as growing demand for its chips used in data centers boosted sales.
GlobalFoundries makes specialty chips for communications, data centers, automotive, industrial and consumer electronics companies.
The company reported second-quarter revenue of $1.79 billion; analysts on average estimated $1.77 billion, according to data compiled by LSEG.
Adjusted diluted earnings per share came in at 46 cents, above analysts' estimate of 44 cents.
Spending on artificial intelligence infrastructure has increased demand for its silicon photonics chips, which use light instead of electrical signals to move data faster inside AI data centers.
The specialty chip maker forecast third-quarter revenue of $1.89 billion, plus or minus $25 million, roughly in line with analysts' estimate of $1.88 billion.
Adjusted free cash flow was negative $3 million, compared with positive $277 million a year earlier.
In March, Global Foundries sued Israel-based rival Tower Semiconductor TSEM.TA alleging the Israeli chipmaker infringed 11 patents related to manufacturing chips used in smartphones and other electronics.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Joyjeet Das)
((Anzar.Mehraj@thomsonreuters.com;))