GlobalFoundries' (GFS) "Buy" Rating Reaffirmed at TD Cowen

Key Points

• TD Cowen reaffirmed a “Buy” rating on GlobalFoundries with a $75 price target, implying 58.41% upside from the previous close. However, broader analyst sentiment remains “Hold,” with eight Buy, ten Hold and two Sell ratings.
• GlobalFoundries shares fell 3.3% to $47.35, while the company’s latest quarterly results exceeded expectations: EPS was $0.46 versus a $0.43 consensus, and revenue rose 5.8% year over year to $1.79 billion.
• The company is positioned to benefit from a planned U.S.-Japan semiconductor initiative that could fund two new fabs and add up to 1.8 million wafers of annual capacity, though construction is not expected to begin until late 2026 and meaningful revenue is unlikely before 2029.

GlobalFoundries (NASDAQ:GFS - Get Free Report)'s stock had its "buy" rating reissued by stock analysts at TD Cowen in a research note issued to investors on Thursday, Benzinga reports. They currently have a $75.00 price objective on the stock. TD Cowen's target price would indicate a potential upside of 58.41% from the company's previous close.

GFS has been the subject of a number of other reports. UBS Group lowered their price target on shares of GlobalFoundries from $61.00 to $55.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Wedbush reissued a "neutral" rating and set a $72.00 price target on shares of GlobalFoundries in a research report on Thursday. BNP Paribas Exane cut shares of GlobalFoundries from an "outperform" rating to a "neutral" rating and set a $51.00 price target for the company. in a research report on Monday, October 5th. Morgan Stanley reissued a "negative" rating and set a $60.00 price target on shares of GlobalFoundries in a research report on Thursday, August 6th. Finally, Jefferies Financial Group set a $60.00 price target on shares of GlobalFoundries in a research report on Wednesday, August 5th. Eight research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, GlobalFoundries has an average rating of "Hold" and an average price target of $75.79.

GlobalFoundries Stock Down 3.3%

NASDAQ GFS traded down $1.59 during trading hours on Thursday, reaching $47.35. 2,045,656 shares of the company's stock traded hands, compared to its average volume of 4,325,672. GlobalFoundries has a 52-week low of $32.02 and a 52-week high of $92.55. The firm has a market cap of $25.98 billion, a PE ratio of 36.92, a PEG ratio of 1.48 and a beta of 1.77. The firm has a 50-day simple moving average of $47.69 and a 200 day simple moving average of $59.70. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.48 and a quick ratio of 1.74.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.03. GlobalFoundries had a net margin of 10.36% and a return on equity of 6.69%. The company had revenue of $1.79 billion during the quarter, compared to analysts' expectations of $1.77 billion. During the same period last year, the company posted $0.42 EPS. GlobalFoundries's revenue was up 5.8% on a year-over-year basis. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. Sell-side analysts anticipate that GlobalFoundries will post 1.48 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Glenda Dorchak sold 4,000 shares of GlobalFoundries stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $58.22, for a total value of $232,880.00. Following the completion of the sale, the director directly owned 14,867 shares in the company, valued at $865,556.74. The trade was a 21.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pradheepa Raman sold 2,145 shares of GlobalFoundries stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $48.83, for a total transaction of $104,740.35. Following the completion of the sale, the insider owned 2,145 shares of the company's stock, valued at $104,740.35. This represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 16,590 shares of company stock valued at $859,087 over the last quarter.

Institutional Trading of GlobalFoundries

A number of large investors have recently made changes to their positions in the stock. Krilogy Financial LLC grew its stake in shares of GlobalFoundries by 7.9% in the third quarter. Krilogy Financial LLC now owns 5,997 shares of the company's stock worth $290,000 after acquiring an additional 441 shares during the period. HBK Investments L P bought a new stake in shares of GlobalFoundries in the second quarter worth approximately $989,000. Sequoia Financial Advisors LLC bought a new stake in shares of GlobalFoundries in the second quarter worth approximately $404,000. WINTON GROUP Ltd bought a new stake in shares of GlobalFoundries in the second quarter worth approximately $363,000. Finally, NewEdge Advisors LLC grew its stake in shares of GlobalFoundries by 3,658.5% in the second quarter. NewEdge Advisors LLC now owns 4,886 shares of the company's stock worth $403,000 after acquiring an additional 4,756 shares during the period.

Key Headlines Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Japan is expected to provide substantial infrastructure funding—roughly $10 billion initially, with a potential second phase of similar size—allowing GlobalFoundries to expand without funding the full construction cost through debt or internal cash flow. The arrangement is viewed as favorable for the company’s balance sheet, which currently has a debt-to-equity ratio of about 0.13. GlobalFoundries to Build Two Chip Fabs With Up to $21 Billion Funding
• Positive Sentiment: The two facilities could add up to 1.8 million 300mm wafers of annual capacity, or approximately 900,000 wafers per fab. The expansion is supported by expected demand from customers including Apple, General Motors, Cirrus Logic and Renesas, reducing the risk of building unused capacity. GlobalFoundries selected to operate two new semiconductor fabs
• Positive Sentiment: The announcement strengthens GlobalFoundries’ strategic position in domestic and allied semiconductor supply chains. Separately, about $955 million in amended CHIPS Act funding will support silicon photonics, silicon-germanium and advanced-packaging projects. GlobalFoundries Stock Rises on Semiconductor Manufacturing Initiative
• Neutral Sentiment: Construction is expected to begin in late 2026, but meaningful revenue from the new fabs is not anticipated until around 2029. Investors will therefore need to wait several years for the capacity expansion to affect earnings.
• Negative Sentiment: The U.S. government is expected to receive approximately a 4% equity stake, creating modest dilution for existing shareholders. The projects also face normal execution risks, including construction delays, equipment shortages and changes in semiconductor demand.

GlobalFoundries Company Profile

GlobalFoundries Inc is a semiconductor contract manufacturer that produces chips for customers without owning their own fabrication facilities. The company operates as a pure-play foundry, manufacturing semiconductors based on customers' designs and supporting them through process development, wafer fabrication, packaging, and related services.

Its technology portfolio focuses on specialized semiconductor platforms rather than the most advanced leading-edge logic nodes. Products and services include radio-frequency technologies, analog and mixed-signal solutions, power management, embedded memory, silicon photonics, and automotive and industrial semiconductor platforms.