GlobalFoundries Inc (GFS) AI Stock Analysis

• Market Cap: $24.10B
• Dividend Yield: N/A
• Average Volume (3M): 4.18M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.66
• Revenue Growth: 0.25%
• EPS Growth: -106.22%
• Country: US
• Employees: 13,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.55
• Shares Outstanding: 555,888,400
• 10 Day Avg. Volume: 5,123,365
• 30 Day Avg. Volume: 4,175,639
• PEG Ratio: -0.05
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 19.26
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.52
• Enterprise Value/Gross Profit: 14.00
• Enterprise Value/Ebitda: 11.10
• 1Y Price Target: $50.68
• Price Target Upside: 19.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.84
• Revenue Forecast (FY): $7.21B

• Rating: 69 Neutral
• Price Target: $47.00 ▲(10.67% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is driven primarily by solid financial footing (low leverage and strong cash generation) and a constructive technical trend. Earnings-call signals are supportive (margin expansion, design wins, acquisitions and buyback) but tempered by near-term revenue softness and investment-driven free-cash-flow pressure. Valuation is a clear drag due to the provided negative P/E and lack of a dividend yield.

Positive Factors

Balance sheet & cash generation

A large cash balance and modest debt plus multi-hundred-million-dollar operating and free cash flow provide durable financial flexibility for a capital-intensive foundry. This supports continued capex, strategic M&A, and buybacks while buffering demand cyclicality and funding multi-year technology investments.

Silicon photonics & comms momentum

Rapid growth in silicon photonics and strong comms/data-center demand indicate expansion into higher-growth, differentiated markets. Targets to nearly double photonics again and reach a $1B run-rate by 2028 suggest a structural revenue diversification that can raise long-term mix and margins versus commodity wafer exposure.

Strategic acquisitions & IP build

Targeted M&A and IP deals expand GF's technology stack into photonics and processor IP, accelerating time-to-market for differentiated products. Expected near-term revenue contributions and incremental margin accretion indicate these are strategic, durable steps to move up the value chain and capture higher-margin design wins.

Negative Factors

Higher capex reducing FCF

A materially higher capex profile to build photonics, FDX, SiGe and packaging capacity will compress free cash flow for multiple years. That reduces near-term cash available for discretionary returns and increases execution risk if demand or grants/timing slip, pressuring sustainable cash conversion.

Flat revenue & near-term demand visibility

Stagnant annual revenue and guidance showing a meaningful sequential drop reduce operating-leverage visibility. Without sustained top-line growth, margin gains and FCF improvements may be harder to maintain, making long-term profitability dependent on converting design wins and new capabilities into stable volumes.

Mobile concentration & cyclical volatility

Heavy exposure to smart mobile customers makes revenue and ASP mix vulnerable to OEM cycles, pricing adjustments, and dual-sourcing. Such concentrated, cyclical demand increases earnings volatility and pressures margins when mobile softens, slowing the company's ability to sustainably grow returns absent faster diversification.

GlobalFoundries Inc Business Overview & Revenue Model

Company Description

GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide. It manufactures integrated circuits, which enable various electronic devices that are pervasive. The company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, power management units, and microelectromechanical systems, as well as offers mainstream wafer fabrication services and technologies. The company was founded in 2009 and is based in Malta, New York.

How the Company Makes Money

GlobalFoundries primarily makes money by selling semiconductor manufacturing services to customers on a contract basis. Its core revenue stream is wafer fabrication: customers provide chip designs and GlobalFoundries manufactures those designs on silicon wafers using its qualified process technologies (e.g., various specialty and mainstream nodes), charging based on the volume and type of wafers processed and, in some cases, associated service terms. Revenue is recognized as it fulfills manufacturing and related performance obligations under customer arrangements. A second revenue component comes from technology- and production-enablement services tied to manufacturing, such as process design kits (PDKs) and design enablement delivered through an ecosystem of electronic design automation (EDA) tools, IP partners, and packaging/test flows, as well as engineering and other support that helps customers qualify products for high-volume production. While these activities support the manufacturing relationship, they can contribute directly or indirectly to revenue depending on contract structure. GlobalFoundries’ earnings are influenced by capacity utilization (how fully its fabs are loaded), product mix (different processes and specialty technologies command different pricing and margins), and the length and structure of customer supply arrangements. Long-term supply agreements and capacity reservations with customers can provide greater demand visibility and may include contractual mechanisms (e.g., committed volumes, take-or-pay style terms, or prepayments) that affect the timing and stability of revenue and cash flows; if specific contractual terms are not publicly disclosed for a given customer, they are null. Partnerships that support revenue generation typically include ecosystem relationships with EDA vendors, IP providers, and outsourced assembly and test (OSAT) companies, which help make GlobalFoundries’ processes easier to adopt and reduce time-to-market for customers, thereby supporting wafer demand and retention. null

GlobalFoundries Inc Financial Statement Overview

Summary

Overall fundamentals are solid: low leverage (debt-to-equity ~0.14) and strong positive operating cash flow (~$1.7B) and free cash flow (~$1.0B) support resilience. Offsetting this, revenue growth is flat in the TTM period and profitability has been cyclical (loss in 2024), with only moderate gross margin (~24% TTM) and some cash conversion drag from ongoing capex needs.

Income Statement

Profitability has improved materially versus 2024, with TTM (Trailing-Twelve-Months) showing solid operating profitability (about 12% operating margin) and healthy EBITDA margin (~31%). However, revenue growth is flat in the TTM period and results have been volatile across the cycle (strong 2022–2023 profitability followed by a loss in 2024). Gross margin remains moderate (~24% TTM) and below the stronger 2022–2023 level, suggesting pricing/mix and/or cost pressure risk if demand softens.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage in TTM (debt-to-equity ~0.14) and a large equity base relative to total assets. Debt has trended down from prior years, improving resilience for a capital-intensive semiconductor manufacturer. The key weakness is returns: return on equity is slightly negative in TTM and was negative in 2024, indicating that despite strong capitalization, earnings power has not been consistently strong.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow (~$1.7B) and free cash flow (~$1.0B) are both solidly positive. That said, free cash flow is down versus the prior year period (negative growth rate in TTM), and cash conversion is not perfect—free cash flow is meaningfully below net income in TTM (roughly two-thirds), pointing to reinvestment/capex needs and potential variability in how much accounting profit turns into cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.79B	6.75B	7.39B	8.11B	6.58B
Gross Profit	1.71B	1.65B	2.10B	2.24B	1.01B
EBITDA	2.23B	1.50B	2.64B	3.25B	1.54B
Net Income	885.00M	-265.00M	1.02B	1.45B	-250.00M
Balance Sheet
Total Assets	17.14B	16.80B	18.04B	17.84B	15.03B
Cash, Cash Equivalents and Short-Term Investments	3.05B	3.39B	3.47B	3.05B	2.96B
Total Debt	1.64B	2.32B	2.75B	2.86B	2.44B
Total Liabilities	5.16B	5.97B	6.89B	7.88B	7.00B
Stockholders Equity	11.93B	10.78B	11.10B	9.91B	7.97B
Cash Flow
Free Cash Flow	1.01B	1.10B	321.00M	-435.00M	1.07B
Operating Cash Flow	1.73B	1.72B	2.13B	2.62B	2.84B
Investing Cash Flow	-1.27B	-1.13B	-1.88B	-4.06B	-1.45B
Financing Cash Flow	-845.00M	-785.00M	-212.00M	842.00M	650.00M

GlobalFoundries Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 42.47 is below the 20-day moving average (MA) of 45.98, below the 50-day MA of 44.38, and above the 200-day MA of 38.05, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 25.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GFS.

GlobalFoundries Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMC	77 Outperform	$23.13B	14.74	11.36%	6.06%	5.87%	-20.93%
GFS	69 Neutral	$24.10B	21.96	7.68%	―	0.25%	-106.22%
AMKR	68 Neutral	$11.90B	26.10	8.73%	0.81%	0.13%	-16.17%
ON	64 Neutral	$23.36B	183.93	1.53%	―	-16.13%	-81.06%
ASX	63 Neutral	$47.54B	26.78	12.81%	2.29%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	56 Neutral	$28.68B	136.11	0.97%	1.28%	-17.33%	-76.71%

GlobalFoundries Inc Corporate Events

GlobalFoundries Closes Mubadala Secondary Offering and $300 Million Share Buyback

On March 13, 2026, GlobalFoundries Inc. closed a previously announced underwritten secondary offering of 27,344,840 ordinary shares, all sold by major shareholder Mubadala Technology Investment Company. Of these, 20,000,000 shares were sold to the public at $42.00 each, while 7,344,840 shares were repurchased by GlobalFoundries from the underwriters at $40.845 per share, meaning the company itself received no proceeds from the sale.

The company’s buyback of 7,344,840 shares, for an aggregate price of about $300 million, was executed under a $500 million repurchase authorization approved by its board in February 2026. In connection with this transaction, GlobalFoundries entered into an underwriting agreement dated March 11, 2026, with Mubadala and underwriters led by J.P. Morgan Securities and Morgan Stanley, which includes a 30‑day option for underwriters to purchase up to an additional 3,000,000 shares, potentially affecting the company’s shareholder base and capital structure.

The most recent analyst rating on (GFS) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.

GlobalFoundries Prices Mubadala Secondary Share Offering, Launches $300 Million Buyback

On March 11, 2026, GlobalFoundries announced the pricing of a secondary public offering of 20 million ordinary shares at $42.00 per share, all sold by Mubadala Technology Investment Company, a subsidiary of its largest shareholder. The deal, which includes a 30-day option for underwriters to buy up to 3 million additional shares, is expected to close on March 13, 2026, with GlobalFoundries itself receiving no proceeds.

Concurrently, GlobalFoundries agreed to repurchase $300 million of the selling shareholder’s ordinary shares from the underwriters at the same price they pay in the offering, funded with cash on its balance sheet under a $500 million repurchase authorization approved in February 2026. The transaction slightly reduces Mubadala’s stake while signaling GlobalFoundries’ capital-return strategy and balance sheet strength, without affecting the size or economics of the repurchase if the underwriters’ option is exercised.

The most recent analyst rating on (GFS) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.

GlobalFoundries Launches Mubadala Secondary Offering and $300 Million Share Buyback

On March 11, 2026, GlobalFoundries announced the launch of a secondary public offering of 20,000,000 ordinary shares, all to be sold by Mubadala Technology Investment Company, a subsidiary of its largest shareholder Mubadala Investment Company PJSC. The selling shareholder may also grant underwriters a 30‑day option to buy up to an additional 3,000,000 shares, while GlobalFoundries itself will not issue new shares or receive proceeds from the sale.

Concurrently, GlobalFoundries plans to repurchase approximately $300 million of Mubadala’s shares from the underwriters as part of a previously approved $500 million buyback authorization, funding the transaction with existing cash. The repurchase, which is conditioned on the closing of the offering but not on any exercise of the underwriters’ option, is set to occur substantially simultaneously with the offering and is expected to modestly support share value while slightly reducing Mubadala’s stake without diluting other shareholders.

The most recent analyst rating on (GFS) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.

GlobalFoundries Adds Mubadala Legal Chief Samer Halawa to Board and Strategy Committee

On February 3, 2026, GlobalFoundries Inc.’s board of directors elected Samer Halawa, Chief Legal Officer of majority shareholder Mubadala Investment Company, as a new Class III director and member of the board’s Strategy & Investment Committee, with a term running until the 2027 annual general meeting. Halawa joins the board as a Mubadala nominee under an existing shareholder agreement, and will receive the same compensation as other non-employee directors, reinforcing Mubadala’s direct governance influence over the chipmaker’s strategic and investment decisions without altering the company’s established board remuneration structure.

The most recent analyst rating on (GFS) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.

GlobalFoundries Adds Former Microchip CEO Ganesh Moorthy to Board

On January 15, 2026, GlobalFoundries announced that seasoned semiconductor executive Ganesh Moorthy, the former president and CEO of Microchip Technology, has been appointed to its board of directors with immediate effect. Moorthy’s four decades of experience spanning leadership roles at Microchip and Intel, along with his current board positions at Ralliant, Celanese, SiTime and Ayar Labs, is expected to bolster GF’s strategic execution as it pursues long‑term growth in power‑efficient, differentiated semiconductors and reinforces its positioning as a key manufacturing partner for customers worldwide.

The most recent analyst rating on (GFS) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.