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GlobalFoundries Inc

GlobalFoundries Inc

GFS
$57.48USD↓-1.30%-0.76 today

MARKET CAP

31.5B

P/E (TTM)

32.3x

FWD P/E

27.1x

DAY RANGE

$55 – $59

52W RANGE

$32
$93

AI Summary

Stalk
TrimMedium

GFS is firmly in a Stage 4 decline with confirmed support failure and bearish medium-term bias. Price is extended below declining EMAs into extreme oversold territory with exhaustion signals, making immediate selling unfavorable. We recommend trimming into strength around any relief rally back toward the declining EMAs (9/20 EMA) or prior overlap support area.

  • ↑Q1 revenue $1.634 B, +3.1% YoY, led by comms & auto.
  • ↑Gross margin hit 29%, +500 bps YoY, reflecting operational efficiency.
  • ↓Negative earnings yield and low profitability score signal profit risks.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

GlobalFoundries Inc. (NASDAQ: GFS) is a leading semiconductor foundry that specializes in advanced manufacturing technologies tailored for high-growth markets such as automotive, communications, and data centers. With a geographically diversified footprint and a focus on essential technologies, the company is well positioned to capture market share driven by surging demands in critical sectors, including developments in AI and optical networking solutions.

Bull says

  • ↑Q1 revenue $1.634 B, +3.1% YoY, led by comms & auto.
  • ↑Gross margin hit 29%, +500 bps YoY, reflecting operational efficiency.
  • ↑$400 M share repurchase program underscores shareholder focus.
  • ↑Design wins up 50% YoY highlight strong customer engagement.
  • ↑Silicon photonics revenue set to double in 2026 on partnerships.
  • ↑Expect high-30% YoY growth in communications and data centers in 2026.

Bear says

  • ↓Negative earnings yield and low profitability score signal profit risks.
  • ↓Capex ~$309 M (19% of revenue) underpins elevated leverage risk.
  • ↓Smart mobile segment set to decline high-single digits, pressuring revenue.
  • ↓Geopolitical supply risks persist, management sees ongoing chain uncertainties.
  • ↓Profitability pressure may intensify amid pricing headwinds in mobile.
  • ↓Market skepticism remains due to mobile sales volatility and margin threats.

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Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • strong conviction in customer demand. It's in those corridors that are oversubscribed today. But when you should think about that CAPEX, the ROI is very strong because we're adding tools to existing footprints and able to bring capacity on very quickly.
  • GS delivered a strong first quarter with all of our non-IFRS profitability metrics at or above the high end of their respective guidance ranges. This was the result of excellent execution by the team with a focus on delivering for our customers.
  • We delivered strong double-digit percentage growth in both automotive and comms infrastructure and data center.

Bear points

  • we're seeing more kind of high single-digit decline year-over-year
  • expectation is that that probably has about a half point of margin impact for each quarter as we go through the rest of 2026.
  • We delivered first quarter revenue of $1.634 billion, down 11% sequentially and up 3.1% year over year.
Read full transcript analysis ›