GlobalFoundries (NASDAQ:GFS), the world's third-largest contract chipmaker, is gaining ground in the semiconductor industry, with shares surging roughly 10% in premarket trading after announcing a strong fourth-quarter revenue forecast. Driven by a resurgence in demand for smartphones and AI-enabled devices, the company is well-positioned to capitalize on the expected holiday season rush, with support from key partners including Qualcomm (NASDAQ:QCOM). Despite softness in IoT and automotive segments, GlobalFoundries' smart mobile devices market saw an impressive 11% quarterly revenue growth, pushing overall third-quarter revenue slightly above estimates at $1.74 billion.

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In Q3, GlobalFoundries maintained solid financial performance, reporting a gross margin of 23.8% and a non-IFRS adjusted EBITDA of $627 million. CEO Dr. Thomas Caulfield highlighted the company's focus on strategic wins and forward-looking investments, affirming that GlobalFoundries is on track to triple its non-IFRS adjusted free cash flow by the end of 2024. These consistent results reflect the company's ability to navigate industry headwinds while leveraging a diverse product portfolio that serves the growing demand for essential semiconductor technologies.

GlobalFoundries' recent partnerships underscore its commitment to innovation and industry leadership. Collaborating with NXP Semiconductors (NASDAQ:NXPI), GF will use its 22FDX platform to enhance NXP's automotive, IoT, and smart device solutions. Additionally, a new alliance with Finwave Semiconductor will bring cutting-edge GaN-on-Si technology to high-volume production in Vermont. As GlobalFoundries deepens its global reach, it remains a pivotal player in the race to bring AI Everywhere, further bolstering its growth trajectory in the tech-driven market.

This article first appeared on GuruFocus.