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.

GlobalFoundries News Summary

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

Several research firms have weighed in on GFS. Weiss Ratings reissued a “hold (c)” rating on shares of GlobalFoundries in a report on Friday, May 29th. Evercore restated an “outperform” rating and set a $85.00 price objective on shares of GlobalFoundries in a report on Tuesday, May 19th. Morgan Stanley set a $57.00 target price on GlobalFoundries in a research report on Monday. Citigroup increased their target price on GlobalFoundries from $49.00 to $70.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Finally, Needham & Company LLC lifted their price target on GlobalFoundries from $55.00 to $80.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $74.12.

GlobalFoundries Price Performance

The firm has a market capitalization 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’s 50 day moving average is $70.87 and its 200 day moving average is $58.73. The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13.

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 the consensus estimate of $0.43 by $0.03. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The business had revenue of $1.79 billion during the quarter, compared to analysts’ expectations of $1.77 billion. During the same quarter in the previous year, the company earned $0.42 EPS. The business’s revenue was up 5.8% on a year-over-year basis. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. On average, equities research analysts anticipate that GlobalFoundries Inc. will post 1.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Glenda Dorchak sold 4,000 shares of the company’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $58.22, for a total transaction of $232,880.00. Following the completion of the sale, the director owned 14,867 shares of the company’s stock, valued at $865,556.74. This represents a 21.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 2,800 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $75.17, for a total transaction of $210,476.00. Following the sale, the insider owned 6,695 shares in the company, valued at $503,263.15. The trade was a 29.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 19,450 shares of company stock worth $1,412,000.

Institutional Trading of GlobalFoundries

A number of institutional investors and hedge funds have recently made changes to their positions in GFS. Royal Bank of Canada increased its stake in GlobalFoundries by 4.4% in the first quarter. Royal Bank of Canada now owns 15,583 shares of the company’s stock valued at $575,000 after acquiring an additional 660 shares during the last quarter. AQR Capital Management LLC lifted its stake in GlobalFoundries by 77.6% during the first quarter. AQR Capital Management LLC now owns 102,048 shares of the company’s stock worth $3,679,000 after purchasing an additional 44,599 shares during the last quarter. Jones Financial Companies Lllp lifted its stake in GlobalFoundries by 7,120.1% during the first quarter. Jones Financial Companies Lllp now owns 12,202 shares of the company’s stock worth $450,000 after purchasing an additional 12,033 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of GlobalFoundries by 3.4% in the 2nd quarter. American Century Companies Inc. now owns 27,606 shares of the company’s stock valued at $1,055,000 after purchasing an additional 903 shares in the last quarter. Finally, M&T Bank Corp acquired a new stake in shares of GlobalFoundries in the 2nd quarter valued at $269,000.

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.