GlobalFoundries tops second quarter estimates on AI chip demand

Aug 5 (Reuters) - GlobalFoundries ‌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 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)

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