US Chips Act Beneficiary GlobalFoundries Stock Soars On Q1 Earnings - What's Going On?
Portfolio Pulse from Anusuya Lahiri
GlobalFoundries Inc (NASDAQ:GFS) reported its fiscal Q1 2024 earnings with a 16% year-on-year revenue decline to $1.55 billion, surpassing analyst estimates. Adjusted EPS was $0.31, beating the consensus of $0.23. Despite a decrease in adjusted gross and operating margins, adjusted EBITDA margin improved. The company, a beneficiary of the US Chips Act, expects Q2 revenue between $1.59 billion and $1.64 billion. GFS stock rose 7.16% following the announcement. Investors can also gain exposure through ETFs LOUP and SOXQ.
May 07, 2024 | 6:28 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
GlobalFoundries reported higher than expected Q1 2024 earnings, with revenue and EPS beating estimates. The company is also a beneficiary of the US Chips Act, receiving $1.5 billion for expansion.
The positive earnings report and the financial support from the US Chips Act are likely to boost investor confidence in GlobalFoundries, leading to a short-term positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to GlobalFoundries through the Innovator Deepwater Frontier Tech ETF (NYSE:LOUP), which may see increased interest following GFS's positive earnings report.
As GlobalFoundries outperforms market expectations, related ETFs like LOUP may experience indirect positive impacts due to increased investor interest in sectors benefiting from the Chips Act.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) offers another avenue for investment in GlobalFoundries, potentially benefiting from GFS's strong earnings and Chips Act involvement.
Given GlobalFoundries' positive earnings and strategic positioning via the Chips Act, ETFs like SOXQ that include GFS may see a positive short-term impact from increased investor interest.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50