GlobalFoundries Downgraded to Neutral, Shares Drop 2.6%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 31 2025
0mins
Source: Benzinga
- Stock Decline: GlobalFoundries shares fell 2.6% to $35.18 on Wednesday, reflecting market concerns about its future performance amid a downturn in the semiconductor industry.
- Weakened Demand Outlook: Analysts noted that OEMs are reducing production numbers due to rising production costs, leading to a diminished demand forecast for consumer electronic devices, which poses direct risks to GlobalFoundries' revenue.
- Market Outlook Challenges: Despite a positive long-term outlook, analysts believe that weak market demand, particularly in industrial and automotive sectors, may impact sales expectations, especially since half of its revenue is tied to smart mobile devices and IoT.
- Strategic Advantages: GlobalFoundries' strategic positioning in the U.S. and Europe is seen as a fundamental strength, and its minimal exposure to China may provide a competitive edge as global customers seek to diversify their supply chains amid geopolitical risks.
Analyst Views on GFS
Wall Street analysts forecast GFS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GFS is 38.88 USD with a low forecast of 35.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 44.220
Low
35.00
Averages
38.88
High
45.00
Current: 44.220
Low
35.00
Averages
38.88
High
45.00
About GFS
GlobalFoundries Inc. is a semiconductor manufacturer. The Company offers a range of mainstream wafer fabrication services and technologies. It manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. Its specialized foundry manufacturing processes include a library consisting of qualified circuit-building block designs (known as IP titles or IP blocks), and advanced transistor and device technology. The Company's differentiated technology platforms include radio frequency (RF) silicon-on-insulator (SOI), Fin Field-Effect Transistor (FinFET), FDX, Complementary Metal-Oxide Semiconductor (CMOS), Silicon Germanium (SiGe), Gallium Nitride (GaN), Bipolar-CMOS-DMOS (BCD), and Silicon Photonics (SiPh).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
