GlobalFoundries (NASDAQ:GFS) Shares Gap Down – What’s Next?

Shares of GlobalFoundries Inc. (NASDAQ:GFS) gapped down before the market opened on Wednesday . The stock had previously closed at $52.02, but opened at $48.14. GlobalFoundries shares last traded at $51.83, with a volume of 1,655,304 shares traded.

Key Headlines Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Second-quarter revenue rose 5.8% year over year to $1.79 billion, exceeding the $1.77 billion analyst consensus, while adjusted earnings of $0.46 per share topped estimates of approximately $0.43–$0.44. GlobalFoundries tops second quarter estimates on AI chip demand
• Positive Sentiment: Management cited increasing demand for chips used in data centers, including AI-related applications, as a key driver of the quarterly sales improvement. This supports the company’s exposure to long-term semiconductor and infrastructure growth. GlobalFoundries tops second quarter estimates on AI chip demand
• Neutral Sentiment: GlobalFoundries guided for third-quarter earnings of $0.46–$0.56 per share, with revenue expected at approximately $1.9 billion. The guidance midpoint is above the $0.47 consensus EPS estimate, while revenue guidance is broadly in line with expectations. GlobalFoundries Reports Second Quarter 2026 Financial Results
• Negative Sentiment: The shares dipped despite the earnings beat, suggesting investors may have expected a stronger outlook or more substantial upside from AI demand. The stock also trades at a relatively high valuation, with a reported P/E ratio of 36.6, leaving less room for execution disappointments. GlobalFoundries dips despite Q2 beat

Analysts Set New Price Targets

A number of research firms have issued reports on GFS. The Goldman Sachs Group reiterated a “neutral” rating and issued a $70.00 target price on shares of GlobalFoundries in a research report on Tuesday, May 5th. Morgan Stanley set a $57.00 target price on shares of GlobalFoundries in a report on Monday. Needham & Company LLC raised their price target on shares of GlobalFoundries from $55.00 to $80.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Robert W. Baird set a $100.00 price target on shares of GlobalFoundries in a report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of GlobalFoundries in a research report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $74.12.

GlobalFoundries Stock Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.87 and a current ratio of 2.59. The company has a market cap of $27.45 billion, a price-to-earnings ratio of 35.99, a P/E/G ratio of 1.77 and a beta of 1.80. The company has a fifty day moving average of $70.87 and a two-hundred day moving average of $58.73.

GlobalFoundries (NASDAQ:GFS) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. GlobalFoundries had a return on equity of 6.85% and a net margin of 11.40%.The business had revenue of $1.79 billion for the quarter, compared to analyst estimates of $1.77 billion. During the same quarter in the previous year, the company posted $0.42 EPS. GlobalFoundries’s quarterly revenue was up 5.8% compared to the same quarter last year. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. Equities research analysts anticipate that GlobalFoundries Inc. will post 1.38 EPS for the current year.

Insider Transactions at GlobalFoundries

In other news, insider Michael James Hogan sold 500 shares of the business’s stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $70.90, for a total transaction of $35,450.00. Following the sale, the insider directly owned 795 shares in the company, valued at approximately $56,365.50. The trade was a 38.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 335 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $77.36, for a total value of $25,915.60. Following the completion of the transaction, the insider directly owned 13,149 shares of the company’s stock, valued at $1,017,206.64. This represents a 2.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 19,450 shares of company stock worth $1,412,000.

Hedge Funds Weigh In On GlobalFoundries

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. WealthCollab LLC raised its stake in shares of GlobalFoundries by 674.7% during the fourth quarter. WealthCollab LLC now owns 705 shares of the company’s stock valued at $25,000 after acquiring an additional 614 shares during the last quarter. Covestor Ltd grew its stake in shares of GlobalFoundries by 57.6% in the fourth quarter. Covestor Ltd now owns 955 shares of the company’s stock worth $33,000 after purchasing an additional 349 shares during the last quarter. Atlas Capital Advisors Inc. bought a new stake in shares of GlobalFoundries in the fourth quarter worth $35,000. Strategic Advocates LLC increased its holdings in GlobalFoundries by 95.1% in the fourth quarter. Strategic Advocates LLC now owns 1,026 shares of the company’s stock valued at $37,000 after purchasing an additional 500 shares during the period. Finally, Parallel Advisors LLC increased its holdings in GlobalFoundries by 39.8% in the first quarter. Parallel Advisors LLC now owns 832 shares of the company’s stock valued at $37,000 after purchasing an additional 237 shares during the period.

GlobalFoundries Company Profile

GlobalFoundries, Inc (NASDAQ: GFS) is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.