Overstock: Customers in industries such as communications and data centers are currently busy clearing their existing chip stocks, reducing their immediate demand for new chips.
Advanced Process Migration: Leading chipmakers such as AMD and Qualcomm are migrating to more advanced process technologies for their products that GlobalFoundries does not currently offer. This puts him at a disadvantage when it comes to winning such high-value contracts.
Following the announcement, GlobalFoundries’ share price fell 4%. The company expects first-quarter revenue to be between $1.50 billion and $1.54 billion, well below analysts’ forecast of $1.76 billion. Adjusted earnings per share are also expected to miss estimates ranging from 18 cents to 28 cents, versus expectations of 46 cents.
GlobalFoundries remains bullish on the automotive sector, expecting further earnings growth due to rising demand for semiconductors in modern vehicles.
Source: Ferra
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