What to Expect From GLOBALFOUNDRIES Upcoming Q4 Results?
Deutsche Bank provided its outlook on GLOBALFOUNDRIES Inc. (NASDAQ:GFS) ahead of the upcoming Q4/22 results announcement.
Despite rising demand weakness/macro headwinds, the analysts believe the company should deliver a solid, approximately in-line Q4, benefitting from a fully booked 2022, backed by fixed/favorably priced long-term agreements.
Looking into fiscal 2023, analysts anticipate that the company should reach its cyclical bottom at some point in the first half of the year, reflecting the trough of the handset market. Taking the year as a whole, the analysts expect the company to be fairly resilient, despite expected weakness in its handset and PC-oriented segments as higher pricing in H2/23 and secure long-term agreements should enable the company to endure the tough macro environment.
| Symbol | Price | %chg |
|---|---|---|
| AMD.BA | 18650 | -0.13 |
| TXN.BA | 56300 | 0.36 |
| 000660.KS | 294500 | -0.85 |
| LRCX.BA | 2300 | 0.22 |
UBS Initiates Neutral Coverage on GlobalFoundries Amid Balanced Prospects and Risks
UBS analysts initiated coverage on GlobalFoundries (NASDAQ:GFS) with a Neutral rating and a $47 price target, highlighting a mix of opportunities and challenges for the semiconductor foundry.
GlobalFoundries’ strong positioning stems from its diverse technology portfolio and manufacturing capacity concentrated in the US, Europe, and Singapore, which could provide an advantage in the face of ongoing geopolitical tensions. However, the analysts expressed concerns about mature node markets, which are expected to face oversupply pressures through 2026. Additionally, the potential for Intel to pivot its substantial non-EUV capacity to compete in these markets presents a long-term risk.
While GlobalFoundries benefits from a strategically favorable location and industry trends, UBS projected lower-than-consensus growth for the company in 2025 and 2026. The analysts also noted that the stock appears relatively expensive compared to peers, given its lower growth and gross margin profile.
UBS Initiates Neutral Coverage on GlobalFoundries Amid Balanced Prospects and Risks
UBS analysts initiated coverage on GlobalFoundries (NASDAQ:GFS) with a Neutral rating and a $47 price target, highlighting a mix of opportunities and challenges for the semiconductor foundry.
GlobalFoundries’ strong positioning stems from its diverse technology portfolio and manufacturing capacity concentrated in the US, Europe, and Singapore, which could provide an advantage in the face of ongoing geopolitical tensions. However, the analysts expressed concerns about mature node markets, which are expected to face oversupply pressures through 2026. Additionally, the potential for Intel to pivot its substantial non-EUV capacity to compete in these markets presents a long-term risk.
While GlobalFoundries benefits from a strategically favorable location and industry trends, UBS projected lower-than-consensus growth for the company in 2025 and 2026. The analysts also noted that the stock appears relatively expensive compared to peers, given its lower growth and gross margin profile.
GLOBALFOUNDRIES Reports Better Than Expected Q3 Results
GLOBALFOUNDRIES (NASDAQ:GFS) reported strong Q3 results and Q4 guidance, but investor attention is understandably focused on macro headwinds intensifying heading into 2023 as a wide array of fabless semiconductor companies have recently lowered their forward guides.
Q3 EPS came in at $0.67, better than the Street estimate of $0.60. Revenue was $2.1 billion, compared to the Street estimate of $2.05 billion.
Analysts at Deutsche Bank raised their price target to $67 from $60 while reiterating their buy rating. Despite the company’s strong execution, growing LTAs, and proactive adjustments to macro reality, the analysts expect most investors will view the company’s ability to grow next year as challenging.
GLOBALFOUNDRIES Reports Better Than Expected Q3 Results
GLOBALFOUNDRIES (NASDAQ:GFS) reported strong Q3 results and Q4 guidance, but investor attention is understandably focused on macro headwinds intensifying heading into 2023 as a wide array of fabless semiconductor companies have recently lowered their forward guides.
Q3 EPS came in at $0.67, better than the Street estimate of $0.60. Revenue was $2.1 billion, compared to the Street estimate of $2.05 billion.
Analysts at Deutsche Bank raised their price target to $67 from $60 while reiterating their buy rating. Despite the company’s strong execution, growing LTAs, and proactive adjustments to macro reality, the analysts expect most investors will view the company’s ability to grow next year as challenging.
