GLOBALFOUNDRIES Inc. (GFS): A Bull Case Theory 

We came across a bullish thesis on GLOBALFOUNDRIES Inc. on Ridire Research’s Substack. In this article, we will summarize the bulls’ thesis on GFS. GLOBALFOUNDRIES Inc.’s share was trading at $35.88 as of December 1st. GFS’s trailing and forward P/E were 28.10 and 18.02 respectively according to Yahoo Finance.

GlobalFoundries (GFS) sits at the heart of the United States’ effort to reestablish semiconductor self-sufficiency, a priority now framed as a national security imperative. As Washington mobilizes capital and incentives to secure domestic production of critical technologies, GFS has quietly become a cornerstone of this reshoring strategy. The company inherited its “trusted foundry” status from IBM’s microelectronics business in 2015, making it one of the few Department of Defense–designated suppliers authorized to produce secure chips for aerospace, communications, and military applications.

Its manufacturing footprint spans radio frequency, power management, and automotive semiconductors—areas that form the backbone of defense, infrastructure, and industrial systems previously reliant on foreign supply chains. GFS’s position is reinforced by federal policy: it has received over $1.5 billion in CHIPS Act funding along with government-backed loans to expand its U.S. fabs. Unlike peers still scaling into policy promises, GFS’s output is already embedded in mission-critical programs, with most capacity locked under long-term contracts with government and industrial clients, ensuring high visibility and stable cash flow.

The company exemplifies policy execution over projection, quietly fulfilling the mandate to produce secure, domestic semiconductors while others, like Intel, are still racing to operationalize their ambitions. This contrast underpins the conviction in the difference between tangible, policy-aligned delivery and aspirational repositioning. In an environment where security, reliability, and sovereign control define value, GFS represents the real embodiment of America’s semiconductor industrial policy—operational today, not theoretical tomorrow.

Previously we covered a bullish thesis on SkyWater Technology, Inc. (SKYT) by TheUndefinedMystic in January 2025, which highlighted its role as the only U.S.-owned pure-play silicon foundry advancing quantum and photonic chips. The stock has appreciated by 49.04% since our coverage as the thesis played out. The thesis still stands, while Ridire Research shares a similar view through GlobalFoundries (GFS), emphasizing policy-backed execution.

GLOBALFOUNDRIES Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held GFS at the end of the second quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of GFS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GFS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.