The Bull Case For GlobalFoundries (GFS) Could Change Following Cirrus Logic Partnership Expansion Into Advanced US Manufacturing

• On August 19, 2025, Cirrus Logic announced the expansion of its long-standing collaboration with GlobalFoundries to accelerate the development and commercialization of advanced BCD and Gallium Nitride technologies, enhancing manufacturing capabilities at GlobalFoundries' US-based and international facilities.
• This expanded partnership not only supports innovation across mixed-signal and power technologies but also gives Cirrus Logic and its customers greater supply chain resilience and geographic diversity through new US manufacturing options.
• We'll explore how GlobalFoundries' strengthened US manufacturing presence in partnership with Cirrus Logic could influence its investment outlook.

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GlobalFoundries Investment Narrative Recap

To be a shareholder in GlobalFoundries, you need to believe in the value of a globally diversified manufacturing footprint and a differentiated technology focus, especially in automotive, industrial, and communications chips. The recent news of an expanded partnership with Cirrus Logic may meaningfully reinforce GlobalFoundries’ US manufacturing presence, supporting one of its top short-term catalysts: regionalized, resilient supply backed by government incentives. However, the biggest immediate risk, limited exposure to advanced process nodes, remains largely unchanged.

A significant recent development that aligns closely with this news is the June 2025 announcement of a US$16 billion investment to expand semiconductor manufacturing capacity, aimed at strengthening supply chains and diversifying the company’s customer base. This broad commitment to US-based capacity and new technology partnerships complements their efforts with Cirrus Logic, underlining GlobalFoundries’ emphasis on capturing growth in markets less reliant on leading-edge nodes.

Yet, despite these positive developments, investors should also be aware that heightened capital expenditure can put pressure on free cash flow if demand unexpectedly softens...

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

GlobalFoundries' outlook anticipates $8.6 billion in revenue and $1.4 billion in earnings by 2028. This scenario is based on an expected 8.0% annual revenue growth and a $1,515 million increase in earnings from the current -$115 million.

Uncover how GlobalFoundries' forecasts yield a $39.91 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community offered fair value estimates for GlobalFoundries, spanning a wide US$25.20 to US$54.14 range. While opinions vary, many point to manufacturing expansion and diversified supply chains as key to the company’s earnings and margin outlook.

Explore 5 other fair value estimates on GlobalFoundries - why the stock might be worth as much as 57% 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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