GlobalFoundries Inc (GFS) AI Stock Analysis

• Market Cap: $22.84B
• Dividend Yield: N/A
• Average Volume (3M): 3.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• 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: 555,681,700
• 10 Day Avg. Volume: 4,430,207
• 30 Day Avg. Volume: 3,241,283
• 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: 0.98
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 13.74
• Enterprise Value/Ebitda: 10.54
• 1Y Price Target: $39.80
• Price Target Upside: -3.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $45.00 ▲(9.49% Upside)

GlobalFoundries Inc's overall stock score is driven by strong technical momentum and positive earnings call highlights, particularly in high-growth areas like silicon photonics and automotive. However, financial performance concerns, especially in profitability and valuation challenges, weigh down the score.

Positive Factors

Silicon photonics growth

Rapid silicon photonics revenue growth and multi‑hundred‑million-design wins show GF scaling a differentiated, higher‑value product line. This strengthens diversification into optical networking and data‑center customers, supporting sustained demand and higher ASPs versus commodity nodes.

Automotive market expansion

Growing automotive exposure increases revenue stability and long‑cycle visibility as vehicle content rises and safety/compute requirements use specialty process tech. A targeted ~$1.5B run‑rate in 2025 signals durable secular demand and deeper customer relationships.

Conservative leverage and cash generation

Low debt ratios and improving free cash flow provide financial flexibility to fund capex, R&D and share returns without overreliance on external financing. This underpins long‑term resilience through cyclical semiconductor demand swings and supports strategic investments.

Negative Factors

Sharp TTM revenue decline

A dramatic TTM revenue decline undermines capacity utilization and pricing leverage in fabs, increasing unit costs and pressuring margins. Sustained top‑line weakness can erode customer confidence and make recovery reliant on new design wins and successful capacity redeployment.

Negative profitability metrics

Persistent negative net and operating margins constrain reinvestment and shareholder returns, forcing management to prioritize cost control or defer strategic projects. Long‑term, unprofitable operations risk capital allocation tradeoffs and make financing growth more costly.

Very large capex commitment

A $16B expansion materially raises execution, funding and timing risk for a capital‑intensive model. Even with solid FCF trends, such scale projects create long payback horizons and operational complexity; misexecution could strain liquidity and delay returns to shareholders.

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 faces challenges in revenue growth and profitability, with a negative net profit margin and declining revenue. However, the balance sheet is stable with low leverage, and cash flow trends are positive, indicating efficient cash generation.

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: Neutral
• Last Price: 41.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 41.1 is below the 20-day moving average (MA) of 42.48, above the 50-day MA of 39.16, and above the 200-day MA of 36.68, indicating a neutral trend. The MACD of 1.10 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, 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	$24.59B	18.37	11.43%	6.06%	5.87%	-20.93%
ON	73 Outperform	$24.97B	80.99	3.87%	―	-16.13%	-81.06%
ASX	69 Neutral	$41.82B	37.32	11.16%	2.29%	8.01%	10.41%
AMKR	66 Neutral	$10.84B	37.26	7.27%	0.81%	0.13%	-16.17%
STM	64 Neutral	$25.62B	146.17	0.93%	1.28%	-17.33%	-76.71%
GFS	63 Neutral	$22.84B	-492.81	-0.38%	―	0.25%	-106.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

GlobalFoundries Inc Corporate Events

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.