Is GFS a good stock to buy? We came across a bullish thesis on GLOBALFOUNDRIES Inc. on The Few Bets That Matter’s Substack. In this article, we will summarize the bulls’ thesis on GFS. GLOBALFOUNDRIES Inc.’s share was trading at $75.26 as of June 9th. GFS’s trailing and forward P/E were 51.10 and 39.37 respectively according to Yahoo Finance.
electronics-6055226_1280
GLOBALFOUNDRIES Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies in the United States and internationally. GFS is increasingly positioned as a structurally important player in silicon photonics and co-packaged optics (CPO) as AI-driven data center demand shifts toward high-volume optical connectivity solutions.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The company’s exposure to this opportunity is still relatively early, with silicon photonics representing a small portion of overall revenue (around ~5% implied), but management has outlined a clear ramp toward a $1B+ SiPho run rate by 2028, driven by accelerating adoption in optical networking and scale-out AI infrastructure.
Based on disclosed growth trajectories, this implies roughly ~50% CAGR over the next few years, supported by expanding wafer shipments and increasing customer reservations of capacity through 2028. Importantly, GlobalFoundries already reports ~ $1B exposure in optical networking, with SiPho positioned as a key acceleration layer within that broader mix. Unlike more specialized peers, GFS operates a diversified manufacturing base across multiple verticals, which includes legacy businesses that currently dilute headline growth but contribute to stable cash generation and operating resilience.
A key structural advantage lies in its owned-fab model, where GlobalFoundries controls its manufacturing footprint, including strategic US-based facilities, enabling long-term capacity expansion and supply assurance for customers in a supply-constrained semiconductor environment. The company is also investing in a dedicated silicon photonics and advanced packaging facility in Malta, New York, designed to create an end-to-end production flow from wafer fabrication to optical module output, significantly shortening manufacturing cycles and improving yield integration.
Management has explicitly emphasized scaling capability, stating plans for a fivefold increase in SiPho capacity by 2026 and strong pre-commitment levels from customers, with over 70% of capacity reserved or under reservation. While market perception still reflects slower headline growth relative to more specialized peers, the underlying trajectory points to accelerating adoption, expanding scale, and a potential rerating as silicon photonics transitions from early deployment to industrial-scale rollout in AI networking infrastructure.
Previously, we covered a bullish thesis on SkyWater Technology, Inc. (SKYT) by TheUndefinedMystic in January 2025, which highlighted quantum computing partnerships and silicon photonics integration via PsiQuantum and CHIPS Act tailwinds. SKYT’s stock price has appreciated by approximately 204.06% since our coverage. The Few Bets That Matter’s Substack shares a similar view but emphasizes AI-driven silicon photonics scale at GlobalFoundries (GFS) and industrial capacity expansion.
GLOBALFOUNDRIES Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held GFS at the end of the first quarter which was 37 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.
Disclosure: None.
