As we navigate the dynamic semiconductor industry, I find it essential to evaluate key players shaping the market. In this analysis, I’ll compare Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS). Both companies operate within the semiconductor sector, yet they adopt distinct approaches to innovation and market strategy. Texas Instruments focuses on analog and embedded processing, while GLOBALFOUNDRIES specializes in foundry services for various integrated circuits. Join me as I uncover which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Texas Instruments Overview
Texas Instruments Incorporated (TXN) is a leading semiconductor company that focuses on designing, manufacturing, and selling a wide array of semiconductor products to electronics designers and manufacturers globally. Established in 1930 and headquartered in Dallas, Texas, Texas Instruments operates primarily in two segments: Analog and Embedded Processing. The company’s Analog segment provides essential power and signal conditioning products, while the Embedded Processing segment delivers microcontrollers and digital signal processors vital for various applications, including industrial and automotive systems. With a market cap of approximately $145B, Texas Instruments has built a strong reputation for innovation and reliability in the semiconductor industry.
GLOBALFOUNDRIES Overview
GLOBALFOUNDRIES Inc. (GFS) is a significant player in the semiconductor foundry market, enabling the production of integrated circuits that power a myriad of electronic devices. Founded in 2009 and based in Malta, New York, the company specializes in manufacturing a diverse range of semiconductor devices, including microprocessors and power management units. With a market cap of around $18.8B, GLOBALFOUNDRIES focuses on providing mainstream wafer fabrication services and technologies to meet the increasing demand for advanced semiconductor solutions.
Key Similarities and Differences
Both Texas Instruments and GLOBALFOUNDRIES operate within the semiconductor industry, yet they adopt distinct business models. Texas Instruments is primarily a designer and manufacturer of its semiconductor products, whereas GLOBALFOUNDRIES functions as a foundry, manufacturing chips for other companies. This differentiation underscores their respective roles in the semiconductor supply chain, reflecting their unique contributions to the market.
Income Statement Comparison
The following table presents the income statement comparison between Texas Instruments (TXN) and GLOBALFOUNDRIES (GFS) for the fiscal year 2024, highlighting key financial metrics.
| Metric | TXN | GFS |
|---|---|---|
| Revenue | 15.64B | 6.75B |
| EBITDA | 7.54B | 1.50B |
| EBIT | 5.96B | -64M |
| Net Income | 4.80B | -265M |
| EPS | 5.24 | -0.48 |
Interpretation of Income Statement
In 2024, Texas Instruments displayed a decline in revenue from 17.52B in 2023 to 15.64B, while net income also reduced significantly from 6.51B to 4.80B, indicating a challenging year. Despite a dip in overall performance, TXN maintained robust margins relative to GFS, which struggled with a negative EBIT and net income, reflecting deeper operational issues. GFS’s revenue also decreased from 7.39B to 6.75B, suggesting it faced significant market pressures. Overall, while TXN showed resilience, GFS’s financial health warrants close scrutiny due to ongoing losses.
Financial Ratios Comparison
The following table presents a comparative analysis of the most recent revenue and financial ratios for Texas Instruments (TXN) and GLOBALFOUNDRIES (GFS). This data aids in understanding each company’s financial health and investment potential.
| Metric | TXN | GFS |
|---|---|---|
| ROE | 28.39% | -2.46% |
| ROIC | 14.75% | -2.26% |
| P/E | 35.63 | -89.54 |
| P/B | 10.12 | 2.20 |
| Current Ratio | 4.12 | 2.11 |
| Quick Ratio | 2.88 | 1.57 |
| D/E | 0.80 | 0.22 |
| Debt-to-Assets | 38.29% | 13.81% |
| Interest Coverage | 10.76 | -1.48 |
| Asset Turnover | 0.44 | 0.40 |
| Fixed Asset Turnover | 1.38 | 0.82 |
| Payout ratio | 99.92% | 0% |
| Dividend yield | 2.80% | 0% |
Interpretation of Financial Ratios
Texas Instruments exhibits strong financial metrics, particularly in profitability and liquidity, with a high return on equity (ROE) and a solid current ratio, indicating good financial health. In contrast, GLOBALFOUNDRIES struggles, evident from its negative ROE and P/E ratio, suggesting it may be facing operational challenges. Investors should exercise caution with GFS due to its weak financial standing and absence of dividends.
Dividend and Shareholder Returns
Texas Instruments (TXN) maintains a solid dividend policy with a payout ratio of about 99% and a yield of approximately 2.8%. They also engage in share buybacks, indicating a commitment to returning value to shareholders. In contrast, GLOBALFOUNDRIES (GFS) does not pay dividends, likely due to reinvestment strategies focused on growth and R&D. While they do not distribute earnings, they also conduct share buybacks. Ultimately, TXN’s approach supports sustainable value creation, whereas GFS’s strategy hinges on future growth potential.
Strategic Positioning
Texas Instruments (TXN) holds a significant market share in the semiconductor sector, particularly in analog and embedded processing solutions. With a market cap of 145B, its diverse product offerings face competitive pressure from newer entrants like GLOBALFOUNDRIES (GFS), which specializes in semiconductor manufacturing. GFS, valued at 19B, is experiencing growth through technological advancements and expanding its foundry services. Both companies must continuously innovate to mitigate the risks of technological disruption in this rapidly evolving industry.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS) over the past year, highlighting key price dynamics and trends that could influence investment decisions.
Trend Analysis
Texas Instruments (TXN) Over the past year, TXN has experienced a price change of -6.49%, indicating a bearish trend. The stock has shown notable highs at 221.25 and lows at 147.6, with a standard deviation of 16.86 suggesting significant volatility. More recently, from September 7, 2025, to November 23, 2025, the stock declined by 15.18% with a deceleration in its trend.
GLOBALFOUNDRIES (GFS) GFS has seen a substantial decline of -43.91% over the past year, categorizing it as a bearish trend as well. The stock reached a high of 60.6 and a low of 31.54, with a standard deviation of 7.56 reflecting moderate volatility. However, in the recent analysis period from September 7, 2025, to November 23, 2025, GFS has slightly rebounded with a price change of 2.1%, indicating a neutral trend. The acceleration in recent performance may suggest a potential stabilization.
In summary, both stocks currently reflect bearish trends over the long term, with TXN showing signs of deceleration and GFS indicating a neutral trend in the short term. Investors should proceed with caution given the significant declines and volatility observed.
Analyst Opinions
Recent recommendations for Texas Instruments (TXN) indicate a “Buy” rating, with analysts highlighting strong return on equity and assets, as noted by a prominent analyst. In contrast, GLOBALFOUNDRIES (GFS) has a “Hold” rating, reflecting concerns over lower profitability metrics, particularly in return on equity and assets. The consensus for TXN is bullish, while GFS remains neutral. As an investor, I suggest focusing on TXN for potential growth, while closely monitoring GFS for future opportunities.
Stock Grades
In this section, I will present the most recent stock ratings for Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS) based on credible grading companies.
Texas Instruments Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | maintain | Positive | 2025-10-22 |
| Rosenblatt | maintain | Buy | 2025-10-22 |
| Truist Securities | maintain | Hold | 2025-10-22 |
| Wells Fargo | maintain | Equal Weight | 2025-10-22 |
| Goldman Sachs | maintain | Buy | 2025-10-22 |
| JP Morgan | maintain | Overweight | 2025-10-22 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-22 |
| Stifel | maintain | Hold | 2025-10-22 |
| TD Cowen | maintain | Buy | 2025-10-22 |
| Mizuho | downgrade | Underperform | 2025-10-20 |
GLOBALFOUNDRIES Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wedbush | maintain | Outperform | 2025-11-13 |
| JP Morgan | maintain | Neutral | 2025-11-13 |
| Citigroup | maintain | Neutral | 2025-11-13 |
| Evercore ISI Group | maintain | Outperform | 2025-11-13 |
| B of A Securities | downgrade | Underperform | 2025-10-13 |
| UBS | maintain | Neutral | 2025-08-06 |
| Wedbush | maintain | Outperform | 2025-08-06 |
| Morgan Stanley | maintain | Equal Weight | 2025-08-06 |
| UBS | maintain | Neutral | 2025-07-28 |
| Citigroup | maintain | Neutral | 2025-07-07 |
Overall, both companies exhibit a mix of maintained and downgraded ratings. TXN has a strong foundation with multiple “Buy” ratings, although it faced a recent downgrade. GFS shows a stable outlook with several “Outperform” ratings, though it also has a downgrade from B of A Securities. This indicates a cautious approach for investors, emphasizing the importance of monitoring these trends closely.
Target Prices
Reliable target price data has been identified for both Texas Instruments and GLOBALFOUNDRIES.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Texas Instruments Incorporated | 245 | 145 | 190.45 |
| GLOBALFOUNDRIES Inc. | 37 | 37 | 37 |
Analysts expect Texas Instruments to reach a consensus target price of 190.45, significantly above its current price of 159.4. GLOBALFOUNDRIES, with a consensus of 37, is also positioned above its current price of 33.99, indicating positive sentiment from analysts.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Texas Instruments (TXN) and GLOBALFOUNDRIES (GFS) based on the most recent data available.
| Criterion | Texas Instruments (TXN) | GLOBALFOUNDRIES (GFS) |
|---|---|---|
| Diversification | High (multiple segments) | Moderate (focused foundry) |
| Profitability | Strong (net margin: 37%) | Low (net margin: 14%) |
| Innovation | High (R&D investment) | Moderate (emerging tech) |
| Global presence | Extensive (global sales) | Growing (expanding internationally) |
| Market Share | Significant (leading in analog) | Emerging (growing market) |
| Debt level | Moderate (debt/equity: 0.66) | Low (debt/equity: 0.25) |
Key takeaways indicate that Texas Instruments boasts strong profitability and a high level of diversification, making it a robust choice for investors. In contrast, while GLOBALFOUNDRIES shows potential, its profitability and market share are still developing, which could entail higher risks.
Risk Analysis
The following table outlines key risks associated with Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS).
| Metric | TXN | GFS |
|---|---|---|
| Market Risk | Medium | High |
| Regulatory Risk | Low | Medium |
| Operational Risk | Medium | High |
| Environmental Risk | Low | Medium |
| Geopolitical Risk | Medium | High |
Both companies face significant market and operational risks. For TXN, the demand for semiconductors fluctuates with global economic conditions, while GFS contends with regulatory scrutiny and geopolitical tensions that could impact supply chains and operations.
Which one to choose?
When comparing Texas Instruments (TXN) and GLOBALFOUNDRIES (GFS), the fundamentals show a clear distinction. TXN boasts a higher gross profit margin of 58.14% and a robust net profit margin of 30.68%, alongside a higher rating of B compared to GFS’s C+. Analyst opinions favor TXN for its consistent return on equity (ROE) of 38.53% and stable operating cash flow. In contrast, GFS struggles with negative margins and a lower overall score, reflecting its ongoing challenges in profitability.
Investors focused on growth may prefer TXN for its strong fundamentals and market presence, while those willing to take on more risk for potential upside could find GFS appealing, despite its volatility. However, GFS’s competitive landscape and reliance on the semiconductor sector present significant risks.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Texas Instruments Incorporated and GLOBALFOUNDRIES Inc. to enhance your investment decisions:
