GlobalFoundries Is Ahead Of The Market's Attention Span

Jun. 09, 2025 9:08 PM ETGlobalFoundries Inc. (GFS) StockLSCC, GFS1 Comment
Grassroots Trading
1.73K Followers
(14min)

Summary

  • GlobalFoundries is overlooked due to market fixation on headlines, despite strong fundamentals and alignment with long-term industrial policy.
  • Operationally, GFS is delivering: margin expansion, robust cash flow, and critical design wins in AI, automotive, and communications sectors.
  • Short-term headwinds include weak mobile demand, falling ASPs, and margin pressure, but the company maintains a strong balance sheet and strategic investments.

GlobalFoundries headquarters in Silicon Valley

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Thesis

GlobalFoundries (NASDAQ:GFS) is a global chipmaker with real links to the automotive, communications, and AI sectors. What started as a spinout has turned into a key part of the global chip supply chain. I argue that GlobalFoundries

This article was written by

1.73K Followers
I focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GFS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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