GlobalFoundries Inc (GFS) AI Stock Analysis

• Market Cap: $19.50B
• Dividend Yield: N/A
• Average Volume (3M): 2.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 0.25%
• EPS Growth: -106.22%
• Country: US
• Employees: 13,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.41
• Shares Outstanding: 552,912,840
• 10 Day Avg. Volume: 3,406,757
• 30 Day Avg. Volume: 2,977,308
• 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: 0.95
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 11.32
• Enterprise Value/Ebitda: 8.69
• 1Y Price Target: $37.56
• Price Target Upside: 6.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.64
• Revenue Forecast (FY): $6.76B

• Rating: 56 Neutral
• Price Target: $36.00 ▲(2.07% Upside)

GlobalFoundries Inc's overall stock score is primarily influenced by its financial performance, which shows challenges in revenue growth and profitability but is supported by a strong balance sheet and positive cash flow trends. The earnings call provided a positive outlook with strong growth in certain sectors, although technical indicators and valuation metrics suggest caution. The absence of a dividend yield and negative P/E ratio further weigh on the score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, enhancing financial stability and flexibility for future investments.

Automotive Market Expansion

Growth in the automotive sector positions GlobalFoundries to capitalize on increasing semiconductor demand in this industry.

Onshoring Initiatives

Significant investment in US manufacturing supports domestic production, aligning with structural trends in supply chain resilience.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential difficulties in maintaining market share and competitiveness in the semiconductor industry.

Profitability Issues

Negative profit margins suggest ongoing challenges in cost management and pricing power, impacting long-term profitability.

CFO Transition

CFO transitions can lead to strategic and operational disruptions, affecting financial planning and investor confidence.

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

GlobalFoundries Inc is facing challenges in revenue growth and profitability, with a significant decline in revenue and negative profit margins. However, the company maintains a strong balance sheet with low leverage and a solid equity base. The cash flow statement shows positive trends in cash generation, which is a positive indicator for future financial stability.

Income Statement

GlobalFoundries Inc has experienced a decline in revenue growth, with a negative growth rate of -74.5% in the TTM period. The company is facing challenges in profitability, as indicated by a negative net profit margin of -1.68% and a negative EBIT margin. However, the gross profit margin remains positive at 23.76%, suggesting some operational efficiency. The EBITDA margin of 21.37% indicates that the company is still generating positive cash flow from operations.

Balance Sheet

The balance sheet of GlobalFoundries Inc shows a stable financial position with a low debt-to-equity ratio of 0.15, indicating conservative leverage. However, the return on equity is negative at -1.03%, reflecting challenges in generating returns for shareholders. The equity ratio stands at a healthy level, suggesting a strong capital structure.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow growth, with a 13.66% increase in the TTM period. The operating cash flow to net income ratio is 0.66, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 0.64 suggests that the company is effectively converting its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.79B	6.75B	7.39B	8.11B	6.58B	4.85B
Gross Profit	1.63B	1.65B	2.10B	2.24B	1.01B	-712.00M
EBITDA	2.13B	1.50B	2.64B	3.25B	1.54B	1.29B
Net Income	-44.00M	-265.00M	1.02B	1.45B	-250.00M	-1.35B
Balance Sheet
Total Assets	16.71B	16.80B	18.04B	17.84B	15.03B	12.32B
Cash, Cash Equivalents and Short-Term Investments	3.28B	3.39B	3.47B	3.05B	2.96B	908.08M
Total Debt	1.66B	2.32B	2.75B	2.86B	2.44B	2.80B
Total Liabilities	4.94B	5.97B	6.89B	7.88B	7.00B	5.08B
Stockholders Equity	11.71B	10.78B	11.10B	9.91B	7.97B	7.18B
Cash Flow
Free Cash Flow	1.17B	1.10B	321.00M	-435.00M	1.07B	412.00M
Operating Cash Flow	1.81B	1.72B	2.13B	2.62B	2.84B	1.00B
Investing Cash Flow	-839.00M	-1.13B	-1.88B	-4.06B	-1.45B	-366.00M
Financing Cash Flow	-1.24B	-785.00M	-212.00M	842.00M	650.00M	-733.00M

GlobalFoundries Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 35.27 is above the 20-day moving average (MA) of 34.24, above the 50-day MA of 34.54, and below the 200-day MA of 36.30, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 77.24 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
AMKR	73 Outperform	$8.63B	28.14	7.27%	2.30%	0.13%	-16.17%
ASX	69 Neutral	$30.29B	27.71	11.17%	2.47%	8.01%	10.41%
ON	68 Neutral	$19.97B	64.78	3.87%	―	-16.13%	-81.06%
UMC	63 Neutral	$18.21B	14.21	10.97%	6.59%	5.87%	-20.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$20.30B	39.82	3.00%	1.53%	-17.33%	-76.71%
GFS	56 Neutral	$19.50B	―	-0.38%	―	0.25%	-106.22%

GlobalFoundries Inc Corporate Events

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.

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.

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.