GlobalFoundries Inc. (NASDAQ: GFS) has been under pressure over the past year. The stock trades near $36/share, down roughly 17% as softer demand in consumer electronics and smartphones weighed on growth. Still, its focus on automotive, industrial, and defense applications continues to give analysts reason for optimism.
Recently, GlobalFoundries announced a multi-year partnership with the U.S. Department of Defense to supply secure semiconductor manufacturing, reinforcing its position as a critical domestic supplier. The company also expanded its Malta, New York facility to support automotive and 5G chip production, signaling confidence in long-term demand for specialty foundry capacity. These moves suggest GlobalFoundries is investing through the downturn to strengthen its strategic advantage.
This article explores where Wall Street analysts think GlobalFoundries could trade by 2027. We have pulled together consensus targets and valuation models to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
GlobalFoundries trades at about $36/share today. The average analyst price target is around $40/share, which points to roughly 10% upside from current levels. Forecasts remain close together, reflecting measured optimism after a challenging period for semiconductor demand:
- High estimate: ~$50/share
- Low estimate: ~$35/share
- Median target: ~$40/share
- Ratings: 7 Buys, 3 Outperforms, 11 Holds, 1 Sell
This range suggests analysts see modest upside, with the stock viewed as fairly valued in the near term. For investors, GlobalFoundries could outperform if end-market demand improves faster than expected or if new government-backed chip initiatives drive stronger domestic manufacturing growth.
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GlobalFoundries: Growth Outlook and Valuation
The company’s fundamentals are gradually strengthening:
- Revenue growth: ~5.6% annually through 2027
- Operating margins: ~18% forecast
- Forward P/E: ~21x
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 21x forward P/E suggests ~$49/share by 2027
- That implies about 36% total returns, or roughly 15% annualized
For investors, this setup looks solid for long-term compounding. The stock’s valuation appears fair relative to its profitability profile, but there is meaningful potential if GlobalFoundries expands its share in high-value automotive, industrial, and defense markets. Its strategic position in U.S. semiconductor manufacturing could also make it a steady beneficiary of reshoring and national security spending over time.
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What’s Driving the Optimism?
GlobalFoundries remains a critical player in global chip manufacturing, focusing on specialty and mature-node semiconductors used in automotive, industrial, and defense applications. These markets are less volatile than consumer electronics and provide more predictable, long-term demand.
Management has also been investing heavily in U.S. manufacturing capacity, supported by government incentives through the CHIPS Act. This expansion helps secure future production contracts and positions GlobalFoundries as a key beneficiary of supply chain reshoring.
For investors, these strengths suggest GlobalFoundries can steadily improve margins and free cash flow as capacity utilization rises. The company’s focus on stable, high-value customers provides a durable base for long-term compounding.
Bear Case: Cyclicality and Competitive Pressure
Even with these positives, risks remain. GlobalFoundries still serves end markets like PCs and smartphones, which are highly cyclical and slow to recover. If demand in these areas stays weak, near-term revenue growth could stall.
Competition from larger foundries like TSMC and Samsung also presents challenges. These rivals continue to expand aggressively and benefit from stronger pricing leverage. Valuation is another concern, as the stock already trades at about 21x forward earnings, leaving limited room for error if margins or volumes disappoint.
For investors, this means GlobalFoundries offers stability, but not immunity to broader industry swings. The company must continue executing well to justify its current valuation.
Outlook for 2027: What Could GlobalFoundries Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 21x forward P/E suggests GlobalFoundries could trade near $49/share by 2027. That represents roughly 36% total returns, or about 15% annualized from current levels around $36/share.
This scenario assumes moderate revenue growth and improving margins as supply-demand conditions normalize. For investors, that implies a steady compounding story rather than an explosive one. Upside beyond this would likely depend on stronger execution in automotive and defense segments or higher-than-expected utilization rates across its U.S. fabs.
In short, GlobalFoundries looks like a disciplined, cash-generating foundry positioned for consistent long-term growth. The stock offers a balanced setup, not a high-flyer, but a steady operator with credible upside as semiconductor demand stabilizes globally.
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