Why Global Foundries Stock Jumped Today
Global Foundries (NASDAQ: GFS) stock surged in Tuesday's trading. The semiconductor fabrication company's share price closed out the daily session up 14.9% and had been up as much as 16.8% earlier in the day.
Global Foundries published its third-quarter results before the market opened this morning, posting sales and earnings that beat Wall Street's expectations. The business recorded adjusted earnings per share of $0.41 on revenue of $1.74 billion, topping the average analyst estimate's call for adjusted per-share earnings of $0.33 on revenue of $1.72 billion.
Global Foundries' revenue dipped roughly 5.9% year over year in the third quarter, but the performance still came in ahead of Wall Street's expectations. While demand for artificial intelligence (AI) chips has been surging, many other parts of the broader semiconductor market are still moving through a cyclical downturn. Along with guidance for sequential sales growth in the current quarter, better-than-expected sales performance in Q3 suggests that the business may be seeing demand for smartphone chips improve.
Source Fool.com
