Stock Price & Analysis

Based on the provided data and current market context, let me analyze GFS stock:

Technical Analysis

The stock is currently showing mixed signals:

• Price has been consolidating between $52-$54 range over the past month
• RSI(14) at 57.66 indicates neutral momentum
• MACD shows a slightly bullish crossover with positive histogram
• Stochastic RSI at 94.10 suggests overbought conditions in the near term

Fundamental Analysis

Recent financial performance shows:

• Revenue declined from $8.1B in FY2022 to $7.4B in FY2023
• Net income dropped from $1.45B to $1.02B
• Gross margin improved slightly from 27.6% to 28.0%
• Current ratio strengthened from 1.73 to 2.04

Recent Developments

The White House is reviewing CHIPS Act awards and may renegotiate terms with recipients including GFS. This creates some near-term uncertainty around the $406 million in government grants that GFS is set to receive later in 2025.

Analyst Sentiment

Recent analyst actions:

• Evercore ISI: Buy rating with $55 target
• TD Cowen: Buy rating with $50 target
• Morgan Stanley: Target raised to $42
• Overall consensus is Moderate Buy with average target of $46.17

Recommendation

SELL at current levels ($43.16) based on:

1. Overbought technical conditions
2. Regulatory uncertainty around CHIPS Act funding
3. Declining revenue and earnings trajectory
4. Current price near analyst targets suggesting limited upside

Consider re-entering around $37-38 support level if fundamentals improve.

Technical Analysis

Based on the recent price data and technical indicators, GFS is currently showing a mixed trend:

• Current price: $43.22 (as of Feb 14, 2025)
• RSI-14: 57.66 indicating neutral momentum
• MACD shows positive divergence with a bullish crossover
• Trading above 20-day SMA ($41.26) but below 200-day SMA ($45.12)

Price Target Analysis for 2025

Based on technical and fundamental factors, here are the projected price scenarios for GFS in 2025:

1. Base Case ($46-48):

• Trading above key moving averages
• Fibonacci resistance level at $45.86 suggests potential upside
• Current analyst consensus price target of $46.17

2. Bull Case ($50-55):

• Potential beneficiary of CHIPS Act funding
• Strong support at Fibonacci level $40.59
• Evercore ISI maintains Buy rating with $55 target

3. Bear Case ($35-40):

• Concerns over CHIPS Act terms renegotiation
• Fibonacci support levels at $37.33 and $35.32
• Global semiconductor market uncertainties

Key Drivers:

• CHIPS Act implementation and potential changes under new administration
• Semiconductor industry demand recovery
• Competition in foundry space
• Global manufacturing expansion plans

The most likely scenario points to a base case target of $46-48 by end of 2025, representing approximately 7-11% upside from current levels.

The S1 support level for GFS Stock is $37.78 ,The R1 resistant level for GFS Stock is $46.5.

As of the end of day on 2025-02-21, the price of GFS Stock was $42.43.

The target price for GFS Stock according to analyst rating is 49.11, with the highest price target at 66.00 and the lowest at 42.00. Analysts have a Moderate Buy rating on GFS Stock overall.

The market cap of GFS is $23.4B.

Based on the financial data, GFS appears to be overvalued at current levels, with deteriorating fundamentals showing in FY2023 compared to FY2022. Revenue declined by 8.8% to $7.39B, while net income dropped significantly by 29.6% to $1.02B. The company's valuation metrics have expanded considerably, with P/E ratio increasing from 20.54x to 33.03x and EV/EBITDA rising from 9.55x to 12.38x, suggesting premium pricing relative to historical levels. Net margin contracted from 17.83% to 13.77%, indicating reduced operational efficiency. The current stock price of $43.22 appears expensive given the weakening business performance and elevated valuation multiples.

GlobalFoundries Inc. is a semiconductor manufacturer. The Company offers a range of mainstream wafer fabrication services and technologies. The Company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. The Company's specialized foundry manufacturing processes include a library consisting of qualified circuit-building block designs (known as IP titles or IP blocks), and differentiated transistor and device technology. The Company's differentiated technology platforms include radio frequency (RF) silicon-on-insulator (SOI), Fin Field-Effect Transistor (FinFET), FDX fully depleted (FD) silicon-on-insulator (SOI), Complementary Metal-Oxide Semiconductor (CMOS), Silicon Germanium (SiGe) and Gallium Nitride (GaN) and Silicon Photonics (SiPh).

Based on GlobalFoundries' current market position and industry trends, GFS stock is projected to reach $85-90 by 2030, driven by the semiconductor industry's expected compound annual growth rate of 12% and the company's strategic position in specialized chip manufacturing. The company's focus on automotive, IoT, and industrial segments positions it well to capture growing demand in these high-margin markets. Technical analysis shows strong support levels and an upward trend channel, suggesting sustained growth potential despite near-term volatility.

GFS has a total of 12000 employees.