Today, I’m taking another look at GlobalFoundries Inc. ( GFS ), a chip manufacturer that focuses on specialized products like RF, power, and embedded semiconductors that runs fabs in the United States, Europe, and Singapore. OriginallyI 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 Disc ...

Core Insights - GlobalFoundries Inc delivered steady September-quarter results and issued upbeat guidance for the December quarter, highlighting progress in diversification and margin expansion strategy [1] - The company is experiencing strong momentum in automotive and data center demand, with growth driven by silicon photonics and satellite communications [1] Financial Performance - The September-quarter performance was solid, with guidance for the December quarter being modestly better than expected, supported by improving cyclical trends [3] - December-quarter guidance implies a year-over-year margin gain of about 300 basis points to 28.5%, despite flat revenues [7] - Projected fourth-quarter revenue is $1.80 billion with adjusted EPS of $0.47 [8] Segment Analysis - The Communications Infrastructure and Datacenter (CID) segment is leading year-over-year growth in 2025, driven by strong demand for optical interconnects in AI infrastructure, which is expected to double silicon photonics revenue this year [4] - The Automotive segment is expected to see mid-teens growth in 2025, with further strength projected into 2026 [5] - The IoT business is under pressure due to slow industrial recovery and weak consumer spending, but growth is expected to improve in the latter half of 2026 [5] - Smart Mobile Devices, contributing roughly 45% of September quarter revenue, is facing near-term growth challenges due to pricing adjustments with major customers, but these adjustments are expected to lead to higher wafer volumes and market share gains [6] Market Outlook - The March quarter is expected to show typical seasonal declines of 10–12% sequentially, reflecting sluggish recovery across end markets, followed by stronger growth later in the year [8] - Analyst noted that Street expectations for 2026 may have been overly optimistic given the slow pace of recovery across several end markets [3]

Core Viewpoint - Morgan Stanley has lowered the target price for GlobalFoundries from $40 to $35 [1] Group 1 - The adjustment in target price reflects changing market conditions and company performance expectations [1]

Group 1: Solar and Energy Stocks - Solar stocks showed recovery with New Special Energy (01799) up 4.99%, Flat Glass (06865) up 3.25%, Xinyi Solar (00968) up 3.75%, and GCL-Poly Energy (03800) up 2.27%. The China Photovoltaic Industry Association stated that rumors about a polysilicon storage platform were false, aiming to malign the industry [1][2] - Energy storage concept stocks rose against the trend, with Longpan Technology (02465) up 17.09%, Ruipu Lanjun (00666) up 15.2%, and Zhongxin Innovation (03931) up 9.22%. Lithium hexafluorophosphate prices have surged, with some market quotes reaching 150,000 yuan/ton, doubling since mid-October [1] Group 2: Oil and Gas Stocks - Oil stocks collectively declined, with CNOOC (00883) down 3.14%, CNOOC Services (02883) down 2.98%, PetroChina (00857) down 2.09%, and Sinopec (00386) down 1.79%. OPEC's monthly report indicated a slight oversupply in the oil market by 2026, contrasting previous predictions of sustained demand [2] Group 3: Steel and Mining Stocks - Steel stocks saw a midday surge, with Maanshan Iron & Steel (00323) up 7.09%, Ansteel (00347) up 2.26%, and Chongqing Iron & Steel (01053) up 2.13%. The Simandou project in Guinea, which has the potential to become the fifth-largest mine globally, has commenced production [2] Group 4: Airline and Transportation Stocks - Southern Airlines (01055) rose over 3.9% after reporting a 2.2% year-on-year increase in revenue for the first three quarters of 2025 [2] Group 5: Biotechnology and Pharmaceuticals - Gilead Sciences (01672) increased over 5.7% as it announced the clinical development of new drugs ASC36 and ASC35 [3] - Zai Lab (02509) rose over 8.4% after announcing plans for continued related transactions for the commercialization of QX001S from 2026 to 2028 [4] Group 6: Gold Stocks - Gold stocks collectively rose, with China Gold International (02099) up 5.99%, Jihai Resources (02489) up 7.3%, and Lingbao Gold (03330) up 4.47%. Gold prices have surpassed $4,100 and are testing the $4,200 resistance level [4] Group 7: US Market Movements - Major tech stocks in the US fell, with Meta Platforms (META.US) down over 2.8%, Tesla (TSLA.US) down over 2%, and Amazon (AMZN.US) down over 1.9% [5] - Eli Lilly (LLY.US) rose 2.95%, reaching a historical high, after announcing a deal to lower GLP-1 drug prices to $245 per month, potentially opening a new market of 30 million people [5] - The US airline service sector saw gains, with United Airlines (UAL.US) up 5.29% and American Airlines (AAL.US) up 3.62%, as the government is expected to reopen soon [5] Group 8: Nuclear Energy Stocks - US nuclear energy stocks rose, with Oklo (OKLO.US) up 6.67% as the government plans to finance new nuclear power plants to meet the energy demands of AI development [6] Group 9: Company-Specific Developments - On Holding (ONON.US) surged over 17.9% after reporting Q3 net sales of 794.4 million Swiss francs, exceeding market expectations [7] - AMD (AMD.US) rose 9% as it projected a 35% annual growth rate in revenue over the next three to five years, driven by AI chip demand [7]

Core Insights - GlobalFoundries Inc. reported quarterly earnings that exceeded analyst expectations, driven by strong performance in its automotive and communications infrastructure sectors [1][2] Financial Performance - The company posted adjusted earnings per share of $0.41 for Q3, surpassing the consensus forecast of $0.38 [2] - Revenue for the third quarter was $1.69 billion, slightly above the expected $1.68 billion, but down 3% year-over-year from $1.74 billion [2] Future Projections - For Q4, GlobalFoundries projected revenue between $1.775 billion and $1.825 billion, aligning with Wall Street expectations of $1.79 billion [3] - The company forecast adjusted earnings per share in the range of $0.42 to $0.52, compared to consensus estimates of $0.47 [3]

Core Viewpoint - The U.S. stock market saw a significant rise in semiconductor stocks, with the Philadelphia Semiconductor Index increasing by over 2%, driven by strong performance expectations from companies like AMD and GlobalFoundries [1][2][4]. Semiconductor Industry - AMD's stock surged nearly 10% after the company projected an annual revenue growth rate of approximately 35% over the next three to five years, with AI chip business growth potentially reaching 80% [2][4]. - AMD's CEO, Lisa Su, anticipates the AI chip market will reach $1 trillion by 2030, and the company aims to increase its market share [2][4]. - GlobalFoundries experienced a brief increase of nearly 7% but later saw a decline. The company reported Q3 revenue of $1.69 billion, a year-over-year decrease of 2.9%, exceeding expectations by $10 million [4]. - GlobalFoundries' CEO, Tim Breen, highlighted strong performance in automotive, communication infrastructure, and data center markets, achieving significant year-over-year growth [4]. Other Companies in the Semiconductor Sector - Microchip Technology rose over 3%, and ON Semiconductor increased by over 2%, while other companies like Marvell Technology, Texas Instruments, and Qualcomm saw gains of over 1% [6]. - The overall performance of the semiconductor sector reflects a positive sentiment in the market, particularly in relation to AI and data center investments [4][6]. Financial Sector - Financial stocks performed strongly, with Goldman Sachs, Morgan Stanley, and Citigroup all rising over 3%, while Wells Fargo and JPMorgan Chase increased by over 2% [7]. Technology Giants - Among the major tech companies, only NVIDIA saw a slight increase of 0.19%, while others like Microsoft, Amazon, Apple, Tesla, Meta, and Alphabet experienced declines [8]. Chinese Stocks - Chinese stocks showed weak performance, with the Nasdaq Golden Dragon China Index dropping over 1.6%, and specific companies like Tencent Music and Daqo New Energy seeing significant declines [9].

Core Insights - GlobalFoundries (GFS.US) shares rose over 5% to $36.47 following a strong Q3 earnings report that exceeded Wall Street expectations [1] Financial Performance - Q3 revenue reached $1.69 billion, a year-over-year decline of 2.9%, but surpassed expectations by $10 million [1] - Non-GAAP earnings per share were $0.41, exceeding expectations by $0.03 [1] Growth Areas - The company reported strong year-over-year growth in automotive, communication infrastructure, and data center end markets for the fourth consecutive quarter [1] - Gross margin, operating margin, and earnings per share all reached the high end of the expected range [1] - There was an increase in gross margin both quarter-over-quarter and year-over-year [1] - Key growth applications such as silicon photonics and FDX platforms showed strong customer growth momentum [1]

The S&P 500 Index ($SPX) (SPY) today is up +0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.77%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.21%.  December E-mini S&P futures (ESZ25) are up +0.22%, and December E-mini Nasdaq futures (NQZ25) are down -0.18%. US stock indexes are mostly higher today, with the S&P 500 posting a 1-week high and the Dow Jones Industrials posting a new all-time high. Stocks are climbing in anticipation that the US government shutdown could end as soon as tod ...

Core Viewpoint - GlobalFoundries (GFS.US) reported stronger-than-expected Q3 performance, with revenue and earnings exceeding Wall Street forecasts despite uneven demand for traditional processors [1] Financial Performance - Q3 revenue reached $1.69 billion, a year-over-year decline of 2.9%, but exceeded expectations by $10 million [1] - Non-GAAP earnings per share were $0.41, surpassing estimates by $0.03 [1] Growth Areas - The company achieved strong year-over-year growth in automotive, communication infrastructure, and data center end markets for the fourth consecutive quarter [1] - Gross margin, operating margin, and earnings per share all reached the high end of the expected range [1] - Key growth applications such as silicon photonics and FDX platform showed strong customer growth momentum [1]

- 1 - GLOBALFOUNDRIES Inc. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As of September 30, 2025 and December 31, 2024 (Unaudited, in millions, except share and per share amounts) | | | | As of | | | --- | --- | --- | --- | --- | | | | September 30 | | December 31 | | | | 2025 | | 2024 | | ASSETS | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 2,016 | $ | 2,192 | | Marketable securities | | 1,268 | | 1,194 | | Receivables, prepayments and other assets | | 1,397 | | ...