
GlobalFoundries (GFS) Stock Forecast & Price Target
GlobalFoundries (GFS) Analyst Ratings
Bulls say
GlobalFoundries is poised for robust growth due to a favorable revenue mix from newly allocated capacity to high-average selling price (ASP) products, which is anticipated to elevate non-GAAP gross margins beyond initial expectations. The company's revenue rose by 8.4% quarter-over-quarter, driven by a 3% increase in wafer shipments, while automotive-related revenues surged by 39.5% on a quarterly basis, reflecting strong demand in this sector. Additionally, the firm is on track to nearly double its Silicon Photonics revenues by 2026 and has revised its 2028 revenue target for this segment to $1 billion, signaling an optimistic outlook for future growth opportunities, particularly in non-wafer revenue streams.
Bears say
GlobalFoundries experienced a significant decline in Smart Mobile Devices revenue, reporting $657 million, reflecting a decrease of 12.6% quarter-over-quarter and 11% year-over-year, indicating weakening demand in a key segment. The firm faces headwinds from supply chain shortages and a lack of interest in advanced technologies, which, coupled with a potential reduction in demand across its targeted end-markets, could adversely affect revenue in a cyclical semiconductor industry characterized by periods of overcapacity. Furthermore, concerns about technological missteps and the inability to maintain competitive advantages in innovation and intellectual property protection add to the negative outlook for GlobalFoundries's future financial performance.
This aggregate rating is based on analysts' research of GlobalFoundries and is not a guaranteed prediction by Public.com or investment advice.
GlobalFoundries (GFS) Analyst Forecast & Price Prediction
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