GlobalFoundries Inc (GFS) AI Stock Analysis

• Market Cap: $19.70B
• Dividend Yield: N/A
• Average Volume (3M): 3.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: -0.65%
• EPS Growth: -114.26%
• Country: US
• Employees: 13,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.42
• Shares Outstanding: 552,912,840
• 10 Day Avg. Volume: 2,895,967
• 30 Day Avg. Volume: 3,420,679
• PEG Ratio: 0.71
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 3.52
• P/FCF Ratio: 21.63
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 12.25
• Enterprise Value/Ebitda: 13.62
• 1Y Price Target: $36.33
• Price Target Upside: 5.55% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $38.00 ▲(10.40% Upside)

GlobalFoundries Inc's overall stock score is driven by strong earnings call performance and positive technical indicators. However, the company's financial performance and valuation present significant challenges, particularly with profitability and a negative P/E ratio. The strategic focus on high-margin markets and successful acquisitions provide a positive outlook, but the company must address profitability issues to enhance its financial health.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for GlobalFoundries' services, enhancing its market position and supporting long-term business stability.

Strategic Acquisitions

Acquiring MIPS strengthens GlobalFoundries' technological capabilities, potentially boosting its competitive edge in AI and processor markets.

Automotive Market Growth

Significant growth in the automotive sector underscores GlobalFoundries' ability to capitalize on high-demand markets, supporting future revenue streams.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder GlobalFoundries' ability to reinvest in growth and maintain competitive pricing, affecting long-term sustainability.

Declining Free Cash Flow

Decreasing free cash flow growth may limit GlobalFoundries' financial flexibility, impacting its ability to fund strategic initiatives and manage debt.

Smart Mobile Devices Revenue Decline

Declining revenue in smart mobile devices suggests challenges in adapting to market shifts, potentially affecting GlobalFoundries' diversification strategy.

GlobalFoundries Inc Business Overview & Revenue Model

Company Description

GlobalFoundries Inc (GFS) is a leading semiconductor foundry that provides advanced manufacturing services for a wide range of semiconductor products. Established in 2009, the company focuses on delivering cutting-edge technology solutions to various sectors, including automotive, artificial intelligence, mobile computing, and telecommunications. Its core services encompass wafer fabrication, design support, and manufacturing of integrated circuits, catering to a diverse clientele that includes major technology companies and startups alike.

How the Company Makes Money

GlobalFoundries generates revenue primarily through its semiconductor manufacturing services, charging clients for the production of silicon wafers based on customer specifications and technology nodes. The company's revenue model is built on contract manufacturing agreements, where clients pay for the fabrication of their designs, often with varying pricing structures depending on the complexity and volume of production. Key revenue streams include sales of semiconductor chips for different applications, including consumer electronics and industrial uses. Additionally, GlobalFoundries benefits from long-term partnerships with major tech firms, which provide stable demand for its services. The company also invests in research and development to create proprietary technologies, which can lead to higher margins and attract new clients seeking advanced manufacturing capabilities.

GlobalFoundries Inc Financial Statement Overview

Summary

GlobalFoundries Inc shows strong revenue growth but struggles with profitability, as evidenced by negative profit margins. The balance sheet is stable with low leverage, but negative return on equity highlights inefficiencies. Cash flow generation from operations is solid, though declining free cash flow growth is concerning.

Income Statement

GlobalFoundries Inc has shown a mixed performance in its income statement. The company experienced a significant revenue growth of 82.5% in the TTM period, indicating strong top-line expansion. However, profitability metrics such as the net profit margin and EBIT margin are negative, reflecting ongoing challenges in achieving operational efficiency. The gross profit margin is moderate at 23.77%, suggesting some ability to manage production costs. Overall, while revenue growth is a positive sign, the lack of profitability remains a concern.

Balance Sheet

The balance sheet of GlobalFoundries Inc shows a stable financial position with a low debt-to-equity ratio of 0.15 in the TTM period, indicating conservative leverage. However, the return on equity is negative, highlighting inefficiencies in generating returns for shareholders. The equity ratio is not explicitly provided, but the company's substantial stockholders' equity suggests a solid capital structure. Overall, the balance sheet reflects financial stability but also points to challenges in profitability.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth, with a negative growth rate of -275.1% in the TTM period, indicating potential cash generation issues. However, the operating cash flow to net income ratio is healthy at 0.64, suggesting that the company is generating cash from its operations despite net losses. The free cash flow to net income ratio is also positive, indicating some ability to convert earnings into cash. Overall, while there are concerns about cash flow growth, operational cash generation remains relatively strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.84B	6.75B	7.39B	8.11B	6.58B	4.85B
Gross Profit	1.63B	1.65B	2.10B	2.24B	1.01B	-712.72M
EBITDA	1.46B	1.50B	2.64B	3.27B	1.56B	1.31B
Net Income	-115.00M	-265.00M	1.02B	1.45B	-254.00M	-1.35B
Balance Sheet
Total Assets	16.80B	16.80B	18.04B	17.84B	15.03B	12.32B
Cash, Cash Equivalents and Short-Term Investments	3.10B	3.39B	3.47B	2.97B	2.94B	908.08M
Total Debt	1.68B	2.32B	2.75B	2.51B	2.01B	2.80B
Total Liabilities	5.12B	5.97B	6.89B	7.88B	7.00B	5.08B
Stockholders Equity	11.41B	10.78B	11.10B	9.91B	8.03B	7.18B
Cash Flow
Free Cash Flow	1.02B	1.10B	321.00M	-435.00M	1.07B	413.41M
Operating Cash Flow	1.59B	1.72B	2.13B	2.62B	2.84B	1.01B
Investing Cash Flow	-773.00M	-1.13B	-1.88B	-4.06B	-1.45B	-366.17M
Financing Cash Flow	-1.22B	-785.00M	-212.00M	842.00M	650.00M	-732.74M

GlobalFoundries Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFS, the sentiment is Negative. The current price of 34.42 is below the 20-day moving average (MA) of 35.01, above the 50-day MA of 34.23, and below the 200-day MA of 36.74, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 31.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GFS.

GlobalFoundries Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMC	76 Outperform	$19.23B	14.73	10.97%	6.52%	5.87%	-20.93%
AMKR	73 Outperform	$9.03B	29.45	7.27%	2.09%	0.13%	-16.17%
ON	68 Neutral	$20.15B	63.68	3.87%	―	-16.13%	-81.06%
ASX	67 Neutral	$33.69B	14.61	11.17%	2.34%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	59 Neutral	$21.34B	41.17	3.00%	1.47%	-17.33%	-76.71%
GFS	58 Neutral	$19.70B	―	-1.01%	―	-0.65%	-114.26%

GlobalFoundries Inc Corporate Events

GlobalFoundries Announces CFO Transition Amid Strong Quarterly Outlook

On October 27, 2025, GlobalFoundries announced the departure of its Chief Financial Officer, John Hollister, for personal reasons. Sam Franklin, the Senior Vice President of Business Finance, Operations, and Investor Relations, will serve as Interim CFO while the company searches for a permanent replacement. The transition is expected to be smooth due to Franklin’s extensive experience and familiarity with the company’s operations. GlobalFoundries remains committed to its strategic priorities and anticipates its quarterly results to meet or exceed previous guidance.

GlobalFoundries Releases Mid-2025 Financial Results

GlobalFoundries Inc. has released its unaudited interim condensed consolidated financial statements for the period ending June 30, 2025. The financial report, which includes management’s discussion and analysis, provides insights into the company’s financial condition and operational results for the first half of 2025. This release is crucial for stakeholders to assess GlobalFoundries’ financial health and strategic positioning in the semiconductor market.

GlobalFoundries Announces Strong Q2 2025 Financial Results and Strategic Acquisitions

On August 5, 2025, GlobalFoundries Inc. announced its financial results for the second quarter of 2025, reporting a revenue of $1.688 billion and a net income of $228 million. The company achieved strong financial performance, surpassing its Non-IFRS guidance ranges for revenue and gross margin. Key developments include being named the exclusive manufacturing partner for Continental’s Advanced Electronics & Semiconductor Solutions organization, the acquisition of MIPS to enhance its AI and processor IP offerings, and advancing its China-for-China strategy to support local demand. These strategic moves are expected to strengthen GlobalFoundries’ market position and expand its capabilities in the semiconductor industry.

GlobalFoundries Announces Key Leadership and Financial Oversight Decisions

On July 29, 2025, GlobalFoundries Inc. held its Annual General Meeting of Shareholders, where key decisions were made to shape the company’s future governance and financial oversight. Shareholders approved the election of four Class I directors, including Tim Breen and Dr. Thomas Caulfield, to serve three-year terms, and ratified the appointment of PricewaterhouseCoopers LLP as the independent public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to reinforce the company’s leadership structure and ensure robust financial management, potentially impacting its operational efficiency and stakeholder confidence.