GlobalFoundries Inc (GFS) AI Stock Analysis

• Market Cap: $26.46B
• Dividend Yield: N/A
• Average Volume (3M): 3.84M
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.65
• 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: 555,681,700
• 10 Day Avg. Volume: 3,102,598
• 30 Day Avg. Volume: 3,842,563
• 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: 3.87
• Enterprise Value/Gross Profit: 15.35
• Enterprise Value/Ebitda: 12.06
• 1Y Price Target: $49.46
• Price Target Upside: 5.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.84
• Revenue Forecast (FY): $7.21B

• Rating: 69 Neutral
• Price Target: $48.00 ▲(2.30% 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

Conservative balance sheet

Very low leverage and a strong capital base materially reduce refinancing and solvency risk for a capital-intensive foundry. This financial flexibility supports sustained investments, capacity expansions and opportunistic buybacks while buffering cyclical downturns over the next 2–6 months.

Strong cash generation

Consistent positive operating and free cash flow provides durable internal funding for R&D, fabs and strategic M&A without overreliance on external financing. Record FCF and healthy operating cash cushions investment cycles and supports capital returns while enabling planned capex increases.

Expanding TAM & design-win momentum

Rapid design-win accumulation and accelerating silicon photonics growth broaden addressable markets (AI/data center, comms, automotive). High sole-source rate implies sticky relationships and future volume visibility, strengthening long-term revenue streams and competitive positioning.

Negative Factors

Higher capex burden

A planned material step-up in capex will compress free cash flow margins and increase near-term cash absorption. Execution and timing of large investments (fabs, photonics, packaging) are critical; delays or cost overruns could materially reduce cash available for other priorities over the next 2–6 months.

Flat revenue & near-term visibility

Minimal full-year growth and an indicated Q1 sequential decline highlight limited top-line momentum and demand visibility. For a capacity-driven foundry, flat revenue pressures utilization and could delay return-on-investment for new capacity, constraining sustainable earnings growth.

Concentration & mix risk from mobile

High exposure to smart mobile, which is experiencing notable declines, creates revenue and ASP sensitivity. Pricing adjustments and dual-sourcing dynamics can depress margins and complicate mix improvements, leaving earnings and utilization exposed if mobile weakness persists.

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 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

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	2.15B	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: Positive
• Last Price: 46.92
• 50DMA: Positive
• 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 Positive. The current price of 46.92 is above the 20-day moving average (MA) of 45.12, above the 50-day MA of 41.77, and above the 200-day MA of 37.53, indicating a bullish trend. The MACD of 1.60 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$27.20B	20.37	11.43%	6.06%	5.87%	-20.93%
GFS	69 Neutral	$26.46B	30.64	7.80%	―	0.25%	-106.22%
AMKR	68 Neutral	$12.00B	32.25	8.67%	0.81%	0.13%	-16.17%
ON	64 Neutral	$27.59B	208.75	1.47%	―	-16.13%	-81.06%
STM	64 Neutral	$30.40B	178.65	0.93%	1.28%	-17.33%	-76.71%
ASX	63 Neutral	$53.41B	41.29	12.53%	2.29%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

GlobalFoundries Inc Corporate Events

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.

GlobalFoundries Appoints New CFO to Drive Growth

On December 10, 2025, GlobalFoundries announced the appointment of Sam Franklin as Chief Financial Officer. Franklin, who has been with GF since 2022, brings extensive financial leadership experience and has previously served as Senior Vice President of Business Finance & Operations and Interim CFO. His appointment is expected to support GF’s continued growth and profitability as the company focuses on delivering differentiated technologies and scaling AI solutions. This strategic leadership change aims to enhance GF’s operational excellence and long-term value creation for shareholders.

The most recent analyst rating on (GFS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.

GlobalFoundries Releases Q3 2025 Financial Results

GlobalFoundries Inc. released its unaudited interim financial statements for the period ending September 30, 2025. The report highlights a decrease in cash and cash equivalents from $2,192 million at the end of 2024 to $2,016 million as of September 2025, indicating potential cash flow challenges. Additionally, the company experienced a reduction in property, plant, and equipment, which may impact its production capacity. These financial results could influence GlobalFoundries’ strategic decisions and stakeholder confidence.

The most recent analyst rating on (GFS) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.

GlobalFoundries Announces Strong Q3 2025 Results and Strategic Expansions

GlobalFoundries reported strong financial results for the third quarter of 2025, with revenue reaching $1.688 billion and a net income of $249 million. The company saw significant growth in its automotive and communications infrastructure markets, alongside advancements in its silicon photonics and FDX platforms. Recent strategic moves include the release of the Complementary Bi-CMOS platform and an expanded partnership with Silicon Labs to enhance semiconductor supply in the U.S. Additionally, GlobalFoundries plans to increase production capacity in its Dresden facility, supported by incentives from the European Chips Act, to better serve key customers in Europe.

The most recent analyst rating on (GFS) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on GlobalFoundries Inc stock, see the GFS Stock Forecast page.