2023: Is The CHIPS Act Accepting Applications Making GlobalFoundries Stock a Buy?

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GLOBALFOUNDRIES ($NASDAQ:GFS): As of 2023, GlobalFoundries Inc. is one of the largest semiconductor manufacturers in the world and its stock is an attractive option for investors. The CHIPS Act, which was recently passed by the U.S. Congress and signed into law, is an incentive program that will provide financial support to companies like GlobalFoundries for the development of new chip designs. With the potential for increased investments in GlobalFoundries stock, many investors are wondering if investing in GlobalFoundries is a good idea now that the CHIPS Act is accepting applications. The answer depends on a number of factors, including the size and growth potential of GlobalFoundries and its financial health.

In addition, the company has a strong balance sheet and an impressive list of partners and customers. These factors point to a bright future for GlobalFoundries and suggest that investing in its stock now may be a wise move. The CHIPS Act is also a positive sign for GlobalFoundries stock as it provides financial support that could further enable the company’s growth. The act could lead to increased investments in GlobalFoundries and may result in more opportunities for the company in the future. Although there is no guarantee that investing in GlobalFoundries stock now will be profitable, it could prove to be a beneficial investment for investors with an appetite for risk. Overall, there is evidence to suggest that investing in GlobalFoundries stock now may be a good idea as the company has solid financials, strong partnerships, and the potential for additional investments due to the CHIPS Act. While there are no guarantees, investors should consider GlobalFoundries as a possible option when deciding how to invest their money.

Share Price

With the recently proposed CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act making headlines, there is mixed news coverage on whether or not it will impact GLOBALFOUNDRIES INC stock. On Friday, GLOBALFOUNDRIES INC opened at $69.4 and closed at $69.0, down by a margin of 1.0% from its last closing price of 69.7. Investors are now wondering if the CHIPS Act could potentially provide a surge in growth and make GLOBALFOUNDRIES INC stock a buy. With the Act’s potential to boost the semiconductor industry, only time will tell if GLOBALFOUNDRIES INC stock will be a lucrative investment. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Globalfoundries Inc are shown below. More…

Analysis

GoodWhale recently conducted an analysis of GLOBALFOUNDRIES INC‘s wellbeing. Our findings have been displayed in a ‘Star Chart’ which shows that GLOBALFOUNDRIES INC is strong in assets, medium in growth, profitability and weak in dividends. GLOBALFOUNDRIES INC has a high health score of 8/10 with regard to its cashflows and debt, and is capable of paying off debts and funding future operations. We have classified GLOBALFOUNDRIES INC as a ‘cheetah’ type of company – one that has achieved high revenue or earnings growth but is considered to be less stable due to lower profitability. Given the nature of GLOBALFOUNDRIES INC as a cheetah, we believe that certain types of investors may be interested in such a company. Investors looking for short-term returns may be attracted by GLOBALFOUNDRIES INC’s high revenue and earnings growth, while investors interested in long-term stability may want to be more cautious when investing in such a company. Ultimately, it is up to the individual investor to decide what type of investment suits them most. More…

Peers

With the technological advances in the semiconductor industry, the competition between foundries has become increasingly fierce. GLOBALFOUNDRIES Inc, a leading foundry company, has been locked in a battle with its competitors, Advanced Micro Devices Inc, Taiwan Semiconductor Manufacturing Co Ltd, and Intel Corp. In order to maintain its competitive edge, GLOBALFOUNDRIES has made significant investments in cutting-edge manufacturing technologies and has been aggressively expanding its production capacity.

– Advanced Micro Devices Inc ($NASDAQ:AMD)

Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. AMD’s main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.

As of 2022, AMD has a market cap of $93.57 billion and a return on equity (ROE) of 4.13%. The company’s products are used in a variety of electronic devices, including personal computers, game consoles, and servers. AMD is a leading supplier of microprocessor technology for the PC market.

– Taiwan Semiconductor Manufacturing Co Ltd ($TWSE:2330)

Taiwan Semiconductor Manufacturing Co Ltd is a semiconductor foundry. The company has a market cap of 10.29T as of 2022 and a Return on Equity of 22.34%. Taiwan Semiconductor Manufacturing Co Ltd is the world’s largest dedicated semiconductor foundry and one of the largest fabless semiconductor companies. The company offers a comprehensive set of IC design enablement tools, libraries, IPs, design services, advanced packaging, test and yield optimization solutions to help customers accelerate time-to-market.

– Intel Corp ($NASDAQ:INTC)

Intel Corp. is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world’s largest and highest valued semiconductor chip manufacturer based on revenue and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.

The company’s market cap is $108.48B as of 2022 and has a return on equity of 19.16%. Intel Corp is a technology company that designs and manufactures computer processors and other components. The company is headquartered in Santa Clara, California, in the Silicon Valley.

Summary

GlobalFoundries Inc. is a semiconductor foundry that manufactures processors for various industries including automotive, consumer, industrial, and communication. Analysis of investing in the company suggests that it is a favorable option for investors due to its relatively high dividend yield, a resilient balance sheet, and long-term growth potential. Despite some recent hiccups, GLOBALFOUNDRIES Inc. remains a strong option for investors looking for mid to long term capital gains.

The company has strong market visibility and is expected to continue to grow in the coming years. Investors should keep an eye on the CHIPS Act, as it could open up additional investment opportunities for those interested in GlobalFoundries.