GLOBALFOUNDRIES Inc. (GFS): A Bull Case Theory

We came across a bullish thesis on GLOBALFOUNDRIES Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on GFS. GLOBALFOUNDRIES Inc.’s share was trading at $41.35 as of January 14th. GFS’s trailing and forward P/E were 28.10 and 20.79 respectively according to Yahoo Finance.

GlobalFoundry Systems (GFS) is a leading foundry specializing in the end-to-end manufacture of silicon photonics integrated circuits, positioning itself as a key player in the rapidly growing photonics and semiconductor markets. The company is experiencing steady growth, with estimated revenue and EBITDA increases of 6.0% and 6.3% respectively in FY26, supported by its technologically advanced manufacturing capabilities and strong client demand. GFS maintains healthy profitability, with a net income margin of 14.5%, reflecting efficient operations and a scalable production model.

Its valuation multiples are attractive relative to the sector, with an NTM EV/Sales of 2.9x, NTM EV/EBITDA of 8.6x, and NTM P/E of 22.8x, suggesting potential upside for investors as the market continues to recognize the value of its specialized offerings. Despite its steady growth profile, GFS benefits from structural tailwinds in silicon photonics, including increasing adoption across data centers, telecommunications, and high-performance computing applications. The company’s fully integrated manufacturing approach enables greater control over product quality, cost efficiency, and innovation cycles, giving it a competitive edge over competitors that rely on fragmented supply chains.

Given its combination of reliable growth, solid margins, and strategic positioning in a high-demand technology segment, GFS presents a compelling investment opportunity for both equity and credit investors seeking exposure to the semiconductor ecosystem. While the company may not offer explosive growth, its resilience, margin stability, and industry leadership in silicon photonics provide a favorable risk/reward profile, making it an attractive addition for investors focused on steady, technology-driven returns.

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 and strategic partnerships in quantum computing. SKYT’s stock has appreciated by 163.32% since our coverage. Oliver | MMMT Wealth shares a similar perspective but emphasizes GFS’s scale, steady growth, and margin stability in silicon photonics.

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Disclosure: None.