
GlobalFoundries (GFS) Stock Forecast & Price Target
GlobalFoundries (GFS) Analyst Ratings
Bulls say
GlobalFoundries is poised for significant sales growth due to an advantageous product mix and the introduction of new capacity that is anticipated to enhance average selling prices (ASPs) per wafer, potentially elevating non-GAAP gross margins above baseline expectations. The automotive sector has demonstrated remarkable performance, with revenues increasing 62% quarter-over-quarter and 30% year-over-year, driven by market share gains and new design wins in advanced driver-assistance systems (ADAS) and sensor applications. Additionally, the company's strong performance in communications infrastructure and data centers, coupled with a projected free cash flow growth to $1.1 billion in 2025, supports a positive financial outlook for GlobalFoundries.
Bears say
GlobalFoundries has projected a significant decline in revenue for 1Q25, estimating a midpoint of $1.575 billion, which represents a 13.9% decrease quarter-over-quarter and a modest 1.7% increase year-over-year, falling short of both internal estimates and analyst expectations. The company is also facing challenges with a drop in average selling prices, which decreased approximately 4% quarter-over-quarter and 5% year-over-year, likely due to adverse product mix changes and limited differentiation in its technology offerings. Additionally, concerns surrounding supply chain disruptions, waning demand in key markets, and the potential for overcapacity in the semiconductor industry contribute to a negative outlook on GlobalFoundries' financial performance and future growth.
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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