GlobalFoundries (GFS) Is Up 5.4% After New Partnerships Expand AI and Space Market Reach – Has the Bull Case Changed?

• Earlier in November 2025, Navitas Semiconductor and GlobalFoundries announced a long-term partnership to advance U.S.-based gallium nitride (GaN) technology, while BAE Systems revealed it will use GlobalFoundries' FinFET technology for space applications.
• These collaborations position GlobalFoundries as a pivotal supplier for high-efficiency power, AI, and space-grade semiconductor solutions amid growing demand for secure and resilient U.S. manufacturing.
• We’ll examine how GlobalFoundries’ expanded involvement in high-growth markets like AI and aerospace could influence its investment narrative.

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GlobalFoundries Investment Narrative Recap

To invest in GlobalFoundries (GFS), it's important to believe in the company's long-term role as a diversified foundry focused on specialty and U.S.-based manufacturing technologies, particularly as chips become central to sectors like automotive, industrial, and AI. The recent Navitas Semiconductor and BAE Systems alliances give GlobalFoundries more exposure to high-demand applications such as AI datacenters and space, but do not materially shift the most significant short-term catalyst of accelerating design wins in automotive and communications infrastructure, or the biggest risk, which remains limited exposure to advanced process nodes.

Of the latest announcements, the expanded partnership with Silicon Labs to develop energy-efficient wireless technologies directly supports the key near-term catalyst: increasing multi-year design wins in high-margin markets tied to vehicle electrification and communications. This focus on differentiated platforms and regional supply offers greater resilience amid shifting global demand and tariff risks.

By contrast, what investors should also keep in mind is the persistent risk that comes from GlobalFoundries’ limited presence in advanced process nodes and how this may cap...

Read the full narrative on GlobalFoundries (it's free!)

GlobalFoundries' narrative projects $8.6 billion revenue and $1.4 billion earnings by 2028. This requires 8.0% yearly revenue growth and a $1.515 billion increase in earnings from -$115.0 million today.

Uncover how GlobalFoundries' forecasts yield a $39.43 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Four individual fair value estimates for GFS from the Simply Wall St Community span from US$30.22 to US$54.14, revealing wide-ranging opinions on the stock’s outlook. While many see global automotive and communications demand as a catalyst for profitability, it's important to recognize how consensus argues that GFS's limited exposure to cutting-edge technologies could influence long-term performance, consider exploring differing viewpoints to shape your own perspective.

Explore 4 other fair value estimates on GlobalFoundries - why the stock might be worth as much as 51% more than the current price!

Build Your Own GlobalFoundries Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your GlobalFoundries research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free GlobalFoundries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GlobalFoundries' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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