• Loading stock data...
GFS Stock: Pure-Play Semi Stock | Learn More - WebTradeTalk Community
Monday, May 23, 2022
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • Login
WebTradeTalk Community
DigitalOcean Referral Badge
  • Home
  • Finance
    Why You (and I) Should Name a ‘Trusted Contact’

    Why You (and I) Should Name a ‘Trusted Contact’

    5 Things to Know About Truist Credit Cards

    5 Things to Know About Truist Credit Cards

    How to Sell Your Car Online

    How to Sell Your Car Online

    How to Book the Star Wars Hotel With Points

    How to Book the Star Wars Hotel With Points

    Lightspeed Restaurant Review 2021: Pricing, Features, Alternatives

    Charles Schwab vs. Robinhood: 2022 Comparison

    Is an Airbnb or a Hotel Right for Your Next Trip?

    Is an Airbnb or a Hotel Right for Your Next Trip?

    How to Insure Your Money When You’re Banking Over $250K

    How to Insure Your Money When You’re Banking Over $250K

    How Does AutoSlash Work? – webtradetalk.com

    How Does AutoSlash Work? – webtradetalk.com

    Smart Money Podcast: COVID Tests, and Reversing a Credit Score Drop

    Smart Money Podcast: The Tax Episode

  • Investing
    Best Stocks Under $5 That Pay Dividends

    Best Stocks Under $5 That Pay Dividends

    10 Best Oil Stocks to Buy Now

    10 Best Oil Stocks to Buy Now

    Best Platforms to Invest in Art

    Best Platforms to Invest in Art

    Hot Cash Stocks for 2022

    Hot Cash Stocks for 2022

    What is the DAX Stock Index?

    What is the DAX Stock Index?

    10 Smart Things To Do With Your Tax Refund

    10 Smart Things To Do With Your Tax Refund

    How to Spot a Crypto Scam (In-Depth Guide)

    How to Spot a Crypto Scam (In-Depth Guide)

    Why You Should Probably Keep Your Distance

    Why You Should Probably Keep Your Distance

    5 Factors To Look For When Investing In An NFT Project

    5 Factors To Look For When Investing In An NFT Project

  • Stock
  • Forex Trading
    Sterling slips in Brexit countdown, Aussie rallies By Reuters

    Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com

    Argentina Peso Tumbles on Bid to Tap $50 Billion IMF Line Faster By Bloomberg

    Argentina Tested as Peso Selloff Prompts Third Abrupt Increase By Bloomberg

    Dollar Drifts Lower as Treasury Yields Retreat By Investing.com

    Dollar Hits Fresh 4-Month High After Mixed Jobs Report By Investing.com

    Dollar Flat After Fed; Aussie Dollar Falls on Weak China PPI Data By Investing.com

    Dollar Eases From 2018 Highs as Wage Growth Woes ‘Puzzle’ Traders By Investing.com

    Virus worries buoy dollar, pound swung by Brexit gyrations By Reuters

    Forex – Weekly Outlook: May 7

    Dollar index at near four-month high after U.S. jobs data By Reuters

    Taiwan probes foreign banks over grain firms’ arbitrage By Reuters

    Forex – Dollar Steady at 4-month High; Aussie Up On Business Confidence By Investing.com

    Dollar Holds Near 4-Month High in 4th Week of Gains By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

  • Crypto
    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    GameFi – Play Hard, Earn Hard

    GameFi – Play Hard, Earn Hard

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Crypto Market Rebounds As Tech firms Boycott Russia

    Crypto Market Rebounds As Tech firms Boycott Russia

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    How 4DOT is making DeFi Accessible to Crypto Investors

    How 4DOT is making DeFi Accessible to Crypto Investors

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

  • Donate
No Result
View All Result
  • Home
  • Finance
    Why You (and I) Should Name a ‘Trusted Contact’

    Why You (and I) Should Name a ‘Trusted Contact’

    5 Things to Know About Truist Credit Cards

    5 Things to Know About Truist Credit Cards

    How to Sell Your Car Online

    How to Sell Your Car Online

    How to Book the Star Wars Hotel With Points

    How to Book the Star Wars Hotel With Points

    Lightspeed Restaurant Review 2021: Pricing, Features, Alternatives

    Charles Schwab vs. Robinhood: 2022 Comparison

    Is an Airbnb or a Hotel Right for Your Next Trip?

    Is an Airbnb or a Hotel Right for Your Next Trip?

    How to Insure Your Money When You’re Banking Over $250K

    How to Insure Your Money When You’re Banking Over $250K

    How Does AutoSlash Work? – webtradetalk.com

    How Does AutoSlash Work? – webtradetalk.com

    Smart Money Podcast: COVID Tests, and Reversing a Credit Score Drop

    Smart Money Podcast: The Tax Episode

  • Investing
    Best Stocks Under $5 That Pay Dividends

    Best Stocks Under $5 That Pay Dividends

    10 Best Oil Stocks to Buy Now

    10 Best Oil Stocks to Buy Now

    Best Platforms to Invest in Art

    Best Platforms to Invest in Art

    Hot Cash Stocks for 2022

    Hot Cash Stocks for 2022

    What is the DAX Stock Index?

    What is the DAX Stock Index?

    10 Smart Things To Do With Your Tax Refund

    10 Smart Things To Do With Your Tax Refund

    How to Spot a Crypto Scam (In-Depth Guide)

    How to Spot a Crypto Scam (In-Depth Guide)

    Why You Should Probably Keep Your Distance

    Why You Should Probably Keep Your Distance

    5 Factors To Look For When Investing In An NFT Project

    5 Factors To Look For When Investing In An NFT Project

  • Stock
  • Forex Trading
    Sterling slips in Brexit countdown, Aussie rallies By Reuters

    Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com

    Argentina Peso Tumbles on Bid to Tap $50 Billion IMF Line Faster By Bloomberg

    Argentina Tested as Peso Selloff Prompts Third Abrupt Increase By Bloomberg

    Dollar Drifts Lower as Treasury Yields Retreat By Investing.com

    Dollar Hits Fresh 4-Month High After Mixed Jobs Report By Investing.com

    Dollar Flat After Fed; Aussie Dollar Falls on Weak China PPI Data By Investing.com

    Dollar Eases From 2018 Highs as Wage Growth Woes ‘Puzzle’ Traders By Investing.com

    Virus worries buoy dollar, pound swung by Brexit gyrations By Reuters

    Forex – Weekly Outlook: May 7

    Dollar index at near four-month high after U.S. jobs data By Reuters

    Taiwan probes foreign banks over grain firms’ arbitrage By Reuters

    Forex – Dollar Steady at 4-month High; Aussie Up On Business Confidence By Investing.com

    Dollar Holds Near 4-Month High in 4th Week of Gains By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

  • Crypto
    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    GameFi – Play Hard, Earn Hard

    GameFi – Play Hard, Earn Hard

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Crypto Market Rebounds As Tech firms Boycott Russia

    Crypto Market Rebounds As Tech firms Boycott Russia

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    How 4DOT is making DeFi Accessible to Crypto Investors

    How 4DOT is making DeFi Accessible to Crypto Investors

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

  • Donate
No Result
View All Result
WebTradeTalk Community
No Result
View All Result
Home Investing

GFS Stock: Pure-Play Semi Stock | Learn More

Newsroom by Newsroom
February 13, 2022
in Investing
0
GFS Stock: Pure-Play Semi Stock | Learn More
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

GlobalFoundries (Nasdaq: GFS) is trending on Wall Street after impressive earnings growth amid the chip shortage. In fact, GFS stock is outperforming its peers as it continues ramping production.

The chip shortage is lasting longer than most experts predicted. The scarcity is causing drastic effects across the economy, with used car prices soaring 40.5%, leading to the highest inflation to 40-year highs. Yet other semiconductor stocks like AMD (Nasdaq: AMD) and Nvidia (Nasdaq: NVDA) are lagging as valuations come back into focus.

With the Fed changing its policy stance from pro-growth to slowing inflation, investors are reducing portfolio risk. As a result, highly valued growth stocks are losing in favor of value.

Although GlobalFoundries is far from a value stock, the company is becoming a Wall Street favorite as it looks to solve the chip shortage. Can the underdog company solve one of the biggest crises pressuring the global economy?

Let’s see how the company plans to do so and how GFS stock can benefit from this environment.

GlobalFoundries: The Next Chipmaking Powerhouse?

Computer chips are playing an ever-increasing role in our lives. They are now powering everything from smartphones to your vehicles. But making these devices is not easy. In fact, it involves hundreds of steps that can take months to produce.

Not only that, but the equipment costs millions of dollars and cannot be “infected” with outside air or dust. The chips are becoming increasingly more complex as technology continues progressing.

With this in mind, GlobalFoundries is stepping up to address the growing need. The company started as a manufacturing arm for AMD and is growing into a chipmaking powerhouse. That said, some of its biggest clients now include:

On top of this, the company is addressing growing markets like smartphones (5G), automotive and the internet of things (IoT). However, what makes GFS stock unique is that it is a semiconductor foundry.

A foundry makes computer chips for other businesses who need them to power their technology like Apple (Nasdaq: AAPL). That said, foundries play a vital role in the supply chain.

So, when new tech hits the market like 5G or self-driving cars, a foundry often supplies the chips. The largest and most well-known semi foundry is Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), with over $15.7B in revenue last quarter.

GlobalFoundries is the 3rd largest foundry, behind TSM and Samsung. The chipmaker has 14 locations in the U.S., Germany and Singapore, with over 200 customers.

Impressive Earnings Growth

After another big earnings beat, this marks the second quarter in a row of GlobalFoundries profitability. The chipmaker saw record growth across the board, with demand for semis not slowing.

  • Revenue up 74% to $1.85B.
  • Net Income up 108% to $43M.
  • Gross Profit up 276% to $384M.
  • Operating Profit up 118% to $87M.
  • Cash from operations up 571% to $947M.

As can be seen, the semi business is booming. That said, the company is ramping production to meet the ongoing demand. Most importantly, GFS stock is turning profitable with net income accelerating 760% from $5M in Q3 to $43M in Q4.

With this in mind, CEO Tom Caulfield believes the momentum will continue this year, saying:

“We are executing well, and believe we are on track to deliver another year of strong growth in revenue and profitability in 2022.”

Caulfield also attributed the company’s growth to signing long-term partnerships with key businesses. First, GF is extending its wafer supply agreement with AMD while extending supply through 2025. Secondly, GFS is partnering with BMW to secure long-term semi supplies. And lastly, GFS and Ford are collaborating to boost chip sales for the auto industry.

On top of this, the company is aggressively expanding its manufacturing ability. With 30 long-term partnership agreements committing over $3.2B, GFS is well-positioned to sustain the growth.

So far, GFS is already working on a new plant in Singapore and planning to build its most advanced facility in upstate New York. On top of this, the chipmaker is expanding capacity by 25% in Dresden.

GFS Stock Analysis

After its debut last October, GFS stock gained over 55% in a month as Wall Street bought into the business model. However, GFS shares are getting dragged down with overall market weakness since then.

Good setups in the market are hard to come by right now. In fact, semiconductors are one of the weakest performing groups. The VanEck Semi ETF (Nasdaq: SMH) lost 8% in the past month.

At the same time, computer chips are more essential than ever. Global semi sales are soaring, with total sales breaking an industry record last year with over 1 trillion. With this in mind, the tech selloff is rippling across the market, with software and semi’s leading the way down.

Although the company is experiencing solid growth, GFS stock is still subject to the overall market trends. Especially as a newly profitable company, GFS can be viewed as a riskier investment.

That being said, GFS stock has high institutional ownership at over 95% as Wall Street continues betting on the foundry.

Forecasting GFS Stock: Where Do We Go From Here

With GFS stock down over 25% from its highs, you would think it’s losing business. But GlobalFoundries is just getting started on its mission.

After an explosive year in 2021, GFS looks to continue building momentum this year. The foundry is partnering with some of the top brands globally to help ease the chip shortage while extending its reach.

It’s important to keep in mind semiconductors tend to be cyclical, with newer, more advanced chips constantly being developed.

However, GFS is making the most of the chip shortage by accelerating its business plan and capitalizing on the higher demand. With several long-term partnerships now under its belt, the company is on track to see continued growth.

And with several new facilities coming soon, they should have the ability to continue building these long-term partnerships to drive revenue. In the long run, GFS is positioning itself to become a chipmaking powerhouse with the ability to power advanced technologies.


Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.

Source link

Tags: GFSLearnPurePlaySemiStock
Previous Post

Coinbase vs. Crypto.com: 2022 Comparison

Next Post

Dollar slips ahead of Fed testimony By Reuters

Newsroom

Newsroom

Related Posts

Best Stocks Under $5 That Pay Dividends
Investing

Best Stocks Under $5 That Pay Dividends

by Newsroom
March 3, 2022
10 Best Oil Stocks to Buy Now
Investing

10 Best Oil Stocks to Buy Now

by Newsroom
March 3, 2022
Best Platforms to Invest in Art
Investing

Best Platforms to Invest in Art

by Newsroom
March 2, 2022
Hot Cash Stocks for 2022
Investing

Hot Cash Stocks for 2022

by Newsroom
March 2, 2022
What is the DAX Stock Index?
Investing

What is the DAX Stock Index?

by Newsroom
March 2, 2022
Next Post
Dollar Remains Weak; Democrats Take Hold of the Senate By Investing.com

Dollar slips ahead of Fed testimony By Reuters

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Articles

Sterling slips in Brexit countdown, Aussie rallies By Reuters

Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com

March 3, 2022
Why You (and I) Should Name a ‘Trusted Contact’

Why You (and I) Should Name a ‘Trusted Contact’

March 3, 2022
Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

March 3, 2022

Browse by Category

  • Crypto
  • Finance
  • Forex Trading
  • Investing
  • Stock

About us

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Personal Finance, Stock, Investing, Crypto, and more.

Categories

  • Crypto
  • Finance
  • Forex Trading
  • Investing
  • Stock

Recent Posts

  • Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com
  • Why You (and I) Should Name a ‘Trusted Contact’
  • Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours
  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2021 webtradetalk.com - All rights reserved

No Result
View All Result
  • Home
  • Finance
  • Investing
  • Stock
  • Forex Trading
  • Crypto
  • Donate

© 2021 webtradetalk.com - All rights reserved

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • bitcoinBitcoin(BTC)$60,736.00-1.05%
  • MMS Cash TokenMMS Cash Token(MCASH)$1.000.00%
  • ethereumEthereum(ETH)$4,240.29-1.27%
  • binancecoinBinance Coin(BNB)$516.85-0.75%
  • tetherTether(USDT)$1.00-0.09%
  • cardanoCardano(ADA)$1.96-0.75%
  • SolanaSolana(SOL)$196.662.08%
  • rippleXRP(XRP)$1.091.42%
  • polkadotPolkadot(DOT)$42.28-1.30%
  • Shiba InuShiba Inu(SHIB)$0.000067-5.05%
  • dogecoinDogecoin(DOGE)$0.261766-4.15%
  • usd-coinUSD Coin(USDC)$1.00-0.08%
  • TerraTerra(LUNA)$42.35-2.09%
  • AvalancheAvalanche(AVAX)$63.120.93%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$60,784.00-0.96%
  • chainlinkChainlink(LINK)$29.46-1.35%
  • Binance USDBinance USD(BUSD)$1.00-0.14%
  • litecoinLitecoin(LTC)$190.63-0.15%
  • UniswapUniswap(UNI)$24.680.07%
  • matic-networkPolygon(MATIC)$1.85-1.97%
  • algorandAlgorand(ALGO)$1.820.55%
  • bitcoin-cashBitcoin Cash(BCH)$593.931.51%
  • cosmosCosmos(ATOM)$36.33-3.38%
  • stellarStellar(XLM)$0.3666102.15%
  • vechainVeChain(VET)$0.130379-1.17%
  • Axie InfinityAxie Infinity(AXS)$137.08-5.29%
  • Internet ComputerInternet Computer(ICP)$45.074.39%
  • daiDai(DAI)$1.00-0.06%
  • filecoinFilecoin(FIL)$63.938.88%
  • tronTRON(TRX)$0.099972-0.89%
  • theta-tokenTheta Network(THETA)$7.12-7.47%
  • ethereum-classicEthereum Classic(ETC)$53.802.21%
  • FTX TokenFTX Token(FTT)$58.46-1.92%
  • FantomFantom(FTM)$2.68-1.66%
  • cETHcETH(CETH)$85.17-1.02%
  • VectoriumVectorium(VECT)$425.81-3.49%
  • HederaHedera(HBAR)$0.401606-3.25%
  • Lido Staked EtherLido Staked Ether(STETH)$4,218.57-0.97%
  • OKBOKB(OKB)$20.58-2.77%
  • tezosTezos(XTZ)$6.26-1.07%
  • ElrondElrond(EGLD)$264.881.10%
  • Crypto.com CoinCrypto.com Coin(CRO)$0.208427-3.29%
  • NearNear(NEAR)$9.86-6.89%
  • The GraphThe Graph(GRT)$0.995.37%
  • moneroMonero(XMR)$268.562.08%
  • eosEOS(EOS)$4.562.83%
  • FlowFlow(FLOW)$13.88-4.08%
  • PancakeSwapPancakeSwap(CAKE)$17.40-3.20%
  • AaveAave(AAVE)$310.80-2.66%
  • KlaytnKlaytn(KLAY)$1.58-1.86%