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MALTA, N.Y. - GlobalFoundries (NASDAQ:GFS), a prominent player in the semiconductor industry with a market capitalization of $18.2 billion, announced Wednesday it has entered into an agreement with Apple to strengthen their collaboration on semiconductor technologies and enhance U.S. manufacturing capabilities. According to InvestingPro analysis, the company’s stock appears undervalued based on its Fair Value assessment.
The partnership will accelerate GlobalFoundries’ investments at its semiconductor manufacturing facility in Malta, New York, focusing on power-efficient, AI-enabling technologies for mobile computing and intelligent devices. The company maintains a strong financial position with a healthy current ratio of 2.63 and more cash than debt on its balance sheet.
"Today’s announcement is a significant milestone in our decade-long partnership with Apple, as we work together to manufacture critical wireless connectivity technologies and power management solutions," said Tim Breen, CEO of GlobalFoundries.
Apple’s Chief Operating Officer Sabih Khan noted this agreement is part of the company’s American Manufacturing Program and its $600 billion commitment to the U.S. over the next four years.
This collaboration builds upon GlobalFoundries’ June announcement of plans to invest $16 billion to expand semiconductor manufacturing and advanced packaging across its facilities in New York and Vermont. These expansion efforts align with the current administration’s policies prioritizing American leadership in AI and domestic semiconductor production. While the stock has experienced a 17% decline over the past week, analysts expect the company to return to profitability this year. Get deeper insights into GFS’s financial health and growth prospects with InvestingPro, which offers 12 additional exclusive tips and comprehensive analysis.
GlobalFoundries manufactures semiconductors for various high-growth markets including automotive, smart mobile devices, internet of things, and communications infrastructure. The company maintains manufacturing facilities across the United States, Europe, and Asia.
The information in this article is based on a press release statement from GlobalFoundries.
In other recent news, GlobalFoundries Inc. reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.42 compared to the projected $0.36. The company also reported revenue of $1.69 billion, slightly above the anticipated $1.68 billion. Despite these positive earnings results, GlobalFoundries faces challenges, as evidenced by Baird lowering its stock price target to $40 from $50 due to a year-over-year revenue decline in the third quarter and weaker demand. Raymond James also adjusted its price target for GlobalFoundries, reducing it to $50 from $55, while noting that the company’s June quarter results were "roughly in line" with expectations despite some volatility. Both Baird and Raymond James maintained an Outperform rating on the company. These developments reflect ongoing challenges in the semiconductor sector and specific issues impacting GlobalFoundries.
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