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MALTA, N.Y./SAN JOSE, Calif. - GlobalFoundries (NASDAQ:GFS), a $21.6 billion semiconductor manufacturer with a strong balance sheet and more cash than debt, announced Tuesday it has entered into a definitive agreement to acquire MIPS, a supplier of AI and processor intellectual property, in a move to expand its customizable IP offerings. According to InvestingPro analysis, GFS currently trades below its Fair Value, suggesting potential upside for investors.
The acquisition will add MIPS’ RISC-V-based processor technology to GlobalFoundries’ portfolio, enhancing its capabilities in real-time computing for autonomous mobility, industrial automation, datacenter, and edge applications.
Following the acquisition, MIPS will continue to operate as a standalone business within GlobalFoundries while serving customers across various technologies. While GFS reported negative earnings in the last twelve months, InvestingPro data indicates analysts expect the company to turn profitable this year, with projected earnings of $1.64 per share.
"MIPS brings a strong heritage of delivering efficient, scalable compute IP tailored for performance-critical applications, which strategically aligns with the evolving demands of AI platforms across diverse markets," said Niels Anderskouv, president and chief operating officer at GlobalFoundries.
MIPS recently launched its Atlas portfolio, a suite of compute cores designed for real-time and application processing, as well as specialized AI edge processing cores based on the open RISC-V specification.
"Becoming part of GlobalFoundries marks the start of a bold new chapter for MIPS," said Sameer Wasson, CEO of MIPS.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the second half of 2025.
Financial terms of the acquisition were not disclosed in the press release statement.
MIPS has a 40-year history in RISC computing innovation and safety-capable processing, positioning it in the Physical AI space for industrial robotics and automotive applications. With a healthy current ratio of 2.51 and strong financial health metrics, GlobalFoundries appears well-positioned to integrate this acquisition. Discover more detailed insights and 8 additional key tips about GFS through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
In other recent news, GlobalFoundries Inc. reported its financial results for the first quarter of 2025, surpassing analysts’ expectations with an earnings per share of $0.34, compared to the forecasted $0.29. The company’s revenue also exceeded projections, reaching $1.59 billion against the expected $1.58 billion. In a strategic move, GlobalFoundries announced a $16 billion investment to expand its semiconductor manufacturing capabilities in the United States, focusing on facilities in New York and Vermont. This expansion is supported by major technology firms like Apple, SpaceX, and Qualcomm Technologies, Inc., highlighting the company’s role in reshoring semiconductor production. Additionally, GlobalFoundries has scheduled its 2025 Annual General Meeting of Shareholders, providing necessary materials for shareholder participation. The company’s strategic focus on automotive, communications infrastructure, and IoT sectors has driven significant design wins, with nearly 90% being sole-sourced. Despite these positive developments, GlobalFoundries’ stock experienced a decline, which may reflect broader market concerns. The company remains committed to advancing innovation and strengthening economic and supply chain resiliency.
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