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MALTA, N.Y. - GlobalFoundries (NASDAQ:GFS), a prominent semiconductor manufacturer with an $18.57 billion market capitalization and annual revenue of $6.84 billion, has completed its acquisition of MIPS, a supplier of AI and processor intellectual property, the semiconductor manufacturer announced Thursday. According to InvestingPro, GFS maintains a strong financial position with more cash than debt on its balance sheet.
The transaction aims to enhance GlobalFoundries’ portfolio in artificial intelligence, edge computing and other high-growth markets, according to a company press release. Financial terms of the deal were not disclosed. The company’s solid liquidity position, evidenced by a healthy current ratio of 2.63, suggests strong capability for strategic investments.
MIPS will continue to operate as a standalone business within GlobalFoundries while maintaining its licensing model and serving customers across various technology sectors.
"The combination of GF and MIPS brings together decades of expertise in advanced semiconductor manufacturing and processor IP innovation," the company stated, noting that the integration would help deliver more differentiated solutions for energy-efficient, high-performance computing.
GlobalFoundries, which operates manufacturing facilities across the United States, Europe and Asia, serves customers in markets including automotive, smart mobile devices, internet of things, and communications infrastructure.
The acquisition comes as demand for specialized semiconductor solutions continues to grow, particularly for AI applications and edge computing devices that require optimized power efficiency and performance.
The company did not provide specific details about how the acquisition would impact its financial outlook or operations. However, InvestingPro analysis indicates the company is currently trading below its Fair Value, with analysts expecting net income growth this year. For deeper insights into GFS’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro along with 8 additional key insights about the company.
In other recent news, GlobalFoundries reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.42, compared to the forecasted $0.36. The company also reported revenue of $1.69 billion, slightly above the anticipated $1.68 billion. GlobalFoundries has announced an expanded partnership with Apple to advance wireless connectivity and power management technologies, which will accelerate investments at its semiconductor manufacturing facility in Malta, New York. This collaboration focuses on developing power-efficient, AI-enabling technologies for mobile computing and intelligent devices.
In terms of analyst assessments, Baird has lowered its price target for GlobalFoundries to $40 from $50, citing weaker demand and a year-over-year revenue decline in the third quarter. Despite this, Baird maintained an Outperform rating on the company. Similarly, Raymond James adjusted its price target to $50 from $55, describing the company’s June quarter results as "roughly in line" with expectations, despite some volatility in top-line performance. These developments highlight ongoing challenges and strategic shifts for GlobalFoundries in the semiconductor market.
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