globalfoundries inc shares fell tuesday after the chip manufacturer’s strong outlook was eclipsed by recent signs that the global chip shortage has flipped into a glut globalfoundries gfs forecast adjusted earnings of 59 cents to 65 cents a share on revenue of 204 billion to 207 billion for the third quarter easily ahead of expectation analysts polled by factset on average were projecting earnings of 44 cents a share on revenue of 199 billion for the third quarter according to factset “we shipped a record 630 thousand wafers in the quarter driven by doubledigit growth at sites in the us and europe” said thomas caulfield globalfoundries chief executive in a statement “despite global supply chain challenges the gf team continues to execute to our expansion plans as we build out capacity to meet our customers’ longterm needs we remain on track to deliver a strong year of growth and profitability” the malta nybased company known for running fabrication plants or “fabs” in industry parlance that make silicon wafers for the majority of chip makers who do not have their own fabs reported secondquarter net income of 317 million or 48 cents a share flipping from a loss of 30 million or 35 cents a share a year ago adjusted earnings which exclude stockbased compensation expenses and other items were 58 cents a share compared with an adjusted loss of 6 cents a share in the yearago period revenue rose to 199 billion up from 162 billion in the yearago quarter analysts surveyed by factset had forecast adjusted earnings of 45 cents a share on revenue of 197 billion based on globalfoundries’ forecast for adjusted earnings of 43 cents to 48 cents a share on revenue of 196 billion to 199 billion for more five things to know about globalfoundries shares fell as much as 8 tuesday to an intraday low of 5435 following the release of the results after closing up more than 11 monday even that their intraday low shares are still nearly 16 higher than their 47 ipo price from the company’s october initial public offering as president biden signs into law about 53 billion earmarked to build out us fab capacity globalfoundries announced that qualcomm inc qcom extended an agreement with the company for more than 4 billion giving it more than 7 billion in contracted business out to 2028 the new elsewhere in the chip sector was not as good however micron technology inc mu warned like many others in the chip sector most recently nvidia corp nvda that revenue for the quarter will likely come in lower than expected adding to data that indicate the global chip shortage has passed for the most part wall street analysts have been expecting a turnaround in the chip sector for months as the pandemicera shortages ease and customers realize they ordered too many semiconductors in the frantic rush of the chip crunch semiconductor companies’ stocks have been pressured most of the year as wall street waited for the change which now appears to be here for many chip sectors for the year globalfoundries shares are down 14 compared with a 28 drop in the phlx semiconductor index sox  a 14 fall in the sp 500 index spx  and a 20 drop in the techheavy nasdaq composite index comp  on tuesday the sox index was down about 5 while the sp 500 was off less than 1 and the nasdaq was down a little more than 1