GlobalFoundries forecasts upbeat second quarter on data center demand

May 5 (Reuters) - Specialty ‌chipmaker GlobalFoundries ​forecast ​second-quarter revenue above Wall Street expectations on Tuesday, driven by acceleration in ‌data center deployments globally.

Shares of the company ⁠rose 6% in premarket trading.

• The company has benefited ‌from its focus on ‌niches such as radio-frequency chips and silicon photonics — a rapidly expanding field finding use in ​artificial intelligence data centers and quantum computers.

• GlobalFoundries expects revenue for the June ⁠ending quarter to be about $1.76 billion, plus or minus $25 million, compared ​with estimates of $1.74 billion, according to data compiled by LSEG.

• The Malta, New ​York-based semiconductor manufacturer reported ‌revenue of $1.63 billion in the first quarter, in line with expectations.

• "GF made ⁠significant traction in secular growth end markets where our differentiated technology drives share growth and outsized ⁠value creation," CEO Tim Breen said.

• The company had flagged ​earlier that demand tied to data centers is currently among the tightest segments in the semiconductor market, with ‌strong visibility extending well beyond typical cycles.

• On an adjusted basis, ‌GlobalFoundries expects earnings per share of 43 cents, ⁠plus or minus ‌5 cents, while ​analysts expect 40 cents.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay ‌Kishore)

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