GlobalFoundries Inc (GFS) AI Stock Analysis

• Market Cap: $18.19B
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.70
• 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: 3,214,785
• 30 Day Avg. Volume: 2,660,831
• 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: 1.10
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 12.25
• Enterprise Value/Ebitda: 13.62
• 1Y Price Target: $40.47
• Price Target Upside: 23.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 53 Neutral
• Price Target: $34.00 ▲(3.34% Upside)

GlobalFoundries Inc's overall stock score is driven by strong revenue growth and positive earnings call highlights, particularly in high-margin markets like automotive and data centers. However, profitability challenges, negative valuation metrics, and neutral technical indicators weigh down the score.

Positive Factors

Revenue Growth

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

Strategic Partnerships

Being the exclusive partner for Continental strengthens GlobalFoundries' market position in automotive semiconductors, fostering long-term growth in a high-margin sector.

Educational Collaboration

This initiative enhances GlobalFoundries' reputation and influence in semiconductor education, potentially leading to future talent acquisition and innovation.

Negative Factors

Profitability Challenges

Ongoing profitability challenges could hinder GlobalFoundries' ability to reinvest in growth opportunities, affecting long-term financial health and shareholder returns.

Declining Free Cash Flow

Declining free cash flow limits GlobalFoundries' capacity to fund new projects and innovations, potentially impacting future growth and competitive positioning.

Pricing Challenges

Pricing challenges could pressure margins and profitability, necessitating strategic adjustments to maintain competitive advantage and financial performance.

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 a mixed financial health profile. The balance sheet is robust with low leverage, but the income statement reveals operational inefficiencies and profitability challenges. Cash flows are strong but declining, indicating potential liquidity concerns if not addressed.

Income Statement

The income statement shows a volatile trend with revenue declining from $8.1B in 2022 to $6.786B TTM but with slight growth compared to the previous year. Gross profit margin TTM is approximately 23.76%, down from 28.28% in 2022, indicating reduced efficiency. The net profit margin is negative due to losses, impacting the overall profitability. The EBIT and EBITDA margins have also deteriorated, reflecting operational challenges.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of approximately 0.15 TTM, indicating low leverage. The equity ratio is strong at about 67.09%, offering financial stability. However, the declining equity from 2022 to TTM suggests potential risks if trends continue.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio, indicating solid cash generation relative to reported losses. The free cash flow remains positive, though it has declined from the previous year, reflecting less cash available after capital expenditures. The free cash flow growth rate has been negative, highlighting a potential concern.

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: Positive
• Last Price: 32.90
• 50DMA: Negative
• 100DMA: Negative
• 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 32.9 is below the 20-day moving average (MA) of 32.94, below the 50-day MA of 35.06, and below the 200-day MA of 38.12, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 73.95 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	78 Outperform	17.89B	14.42	12.92%	6.66%	5.46%	-26.72%
AMKR	76 Outperform	7.30B	23.10	7.24%	2.49%	-1.20%	-19.46%
ON	68 Neutral	21.06B	48.05	5.87%	―	-17.93%	-75.83%
ASX	67 Neutral	24.83B	23.35	11.59%	3.04%	4.86%	6.44%
STM	67 Neutral	25.26B	40.53	3.66%	1.21%	-22.97%	-78.58%
GFS	53 Neutral	$18.19B	28.15	-1.01%	―	-0.65%	-114.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

GlobalFoundries Inc Corporate Events

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.