GlobalFoundries Shares Plunge on Weak Q3 Guidance Despite Q2 Beat

Specialty semiconductor manufacturer GlobalFoundries (GFS) tumbled 10.3% Tuesday after delivering mixed second-quarter results. While revenue ($1.69B, +3.4% YoY) and adjusted EPS ($0.42, +11%) topped estimates, weak forward guidance overshadowed the performance.

The company cited demand pull-forward into Q2, particularly in automotive and data center segments, while its largest consumer electronics vertical declined 10%. Management's Q3 revenue ($1.68B) and EPS ($0.42) projections signal sequential declines, sparking investor concerns about near-term demand.

As a key supplier of non-leading-edge chips for IoT, autos, and peripherals, GlobalFoundries' struggles highlight ongoing volatility in specialty semiconductor markets. The guidance miss suggests inventory adjustments may be spreading beyond consumer electronics into industrial applications.