In the dynamic landscape of the semiconductor industry, two prominent players, Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS), stand out with their distinct business models and innovation strategies. While AMD focuses on designing cutting-edge processors and graphics technologies, GFS operates as a foundry, manufacturing semiconductor components for various applications. This comparison aims to shed light on their market positions and growth trajectories, helping investors like you decide which company could be the more compelling addition to your portfolio.
Table of contents
Company Overview
Advanced Micro Devices, Inc. Overview
Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company that specializes in designing and manufacturing high-performance microprocessors and graphics solutions. Founded in 1969 and headquartered in Santa Clara, California, AMD operates primarily in two segments: Computing and Graphics, and Enterprise, Embedded, and Semi-Custom Solutions. The company’s diverse lineup includes popular product lines such as AMD Ryzen processors and Radeon graphics cards, which are integral to personal computing, gaming, and data center applications. As of 2025, AMD maintains a market capitalization of approximately $331B, reflecting its substantial presence in the technology sector.
GLOBALFOUNDRIES Inc. Overview
GLOBALFOUNDRIES Inc. is a prominent semiconductor foundry that provides manufacturing services for integrated circuits globally. Established in 2009 and based in Malta, New York, the company focuses on producing a wide array of semiconductor devices including microprocessors, mobile application processors, and more. With a market cap of around $18B, GLOBALFOUNDRIES plays a crucial role in the supply chain for electronic devices, catering to a variety of industries. The company’s commitment to advanced manufacturing technologies allows it to meet the growing demands of the semiconductor market.
Key similarities between AMD and GLOBALFOUNDRIES lie in their focus on the semiconductor industry and their contributions to technology. However, while AMD designs and sells semiconductor products, GLOBALFOUNDRIES primarily provides manufacturing services, positioning them differently within the market ecosystem.
Income Statement Comparison
In the table below, I present the income statements for Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS) for the most recent fiscal year. This comparison will help us assess their financial performance.
| Metric | AMD | GFS |
|---|---|---|
| Revenue | 25.79B | 6.75B |
| EBITDA | 5.26B | 1.50B |
| EBIT | 2.08B | -64M |
| Net Income | 1.64B | -265M |
| EPS | 1.01 | -0.48 |
Interpretation of Income Statement
In the most recent year, AMD exhibited a significant increase in revenue, growing from 22.68B to 25.79B, alongside a rise in net income from 854M to 1.64B. This translates to improved profitability margins, suggesting effective cost management. On the other hand, GFS faced challenges, experiencing a decline in revenue from 7.39B to 6.75B, leading to a net loss of 265M. The negative EBIT and EPS highlight the need for GFS to reassess its operational strategies to regain profitability in future periods.
Financial Ratios Comparison
In this section, I present a comparative analysis of the most recent revenue and key financial ratios for Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS).
| Metric | AMD | GFS |
|---|---|---|
| ROE | 2.85% | -2.46% |
| ROIC | 2.48% | -2.26% |
| P/E | 123.6 | -89.5 |
| P/B | 3.52 | 2.20 |
| Current Ratio | 2.62 | 2.11 |
| Quick Ratio | 1.83 | 1.57 |
| D/E | 0.04 | 0.22 |
| Debt-to-Assets | 0.03 | 0.15 |
| Interest Coverage | 20.65 | -1.48 |
| Asset Turnover | 0.37 | 0.40 |
| Fixed Asset Turnover | 10.63 | 0.82 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios reveal significant differences between AMD and GFS. AMD shows strong performance with a favorable ROE, ROIC, and high interest coverage, indicating solid profitability and lower financial risk. In contrast, GFS’s negative ROE and interest coverage raise concerns about its profitability and ability to meet interest obligations. Both companies have no dividend payouts, suggesting a focus on growth rather than shareholder returns. Caution is advised when considering GFS due to its higher debt levels and negative margins.
Dividend and Shareholder Returns
Neither Advanced Micro Devices, Inc. (AMD) nor GLOBALFOUNDRIES Inc. (GFS) currently pays dividends, indicating a preference for reinvestment in growth initiatives. AMD’s strategy focuses on R&D and market expansion, while GFS is still navigating financial challenges with negative net income. Both companies do engage in share buyback programs, which could enhance shareholder value. However, the lack of dividends may raise questions about sustainable long-term value creation. Investors should consider these strategies carefully in their investment decisions.
Strategic Positioning
In the semiconductor market, Advanced Micro Devices, Inc. (AMD) holds a substantial market share, particularly in the computing and graphics segments, leveraging its strong product portfolio to mitigate competitive pressures. With a market cap of 331B and a robust innovation pipeline, AMD faces challenges from rivals like GLOBALFOUNDRIES Inc. (GFS), which excels in foundry services. However, GFS’s focus on wafer fabrication and a market cap of 19B allows it to thrive amidst technological disruptions. Both companies must navigate evolving industry dynamics to maintain their competitive edge.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS) over the past year, highlighting key price dynamics.
Trend Analysis
Advanced Micro Devices, Inc. (AMD) Over the past year, AMD’s stock has experienced a remarkable price change of +38.24%, indicating a bullish trend. The stock has shown acceleration, with notable highs reaching 256.12 and lows at 85.76. The standard deviation of 35.18 suggests moderate volatility in price movements.
In the recent period from September 7, 2025, to November 23, 2025, the price change was +34.83%, with a standard deviation of 40.13, indicating a continued bullish momentum.
GLOBALFOUNDRIES Inc. (GFS) Conversely, GFS’s stock has faced significant challenges, reflecting a bearish trend with a price change of -43.91% over the past year. The acceleration status further emphasizes the downward trajectory, with highs of 60.6 and lows of 31.54. A lower standard deviation of 7.56 points to reduced volatility compared to AMD.
In the recent analysis period from September 7, 2025, to November 23, 2025, GFS’s stock showed a minimal price change of +2.1%, indicating a neutral trend with little movement during this timeframe.
In summary, AMD displays strong performance with bullish indicators, while GFS continues to struggle under a bearish trend.
Analyst Opinions
Recent analyst recommendations indicate a mixed sentiment towards AMD and GLOBALFOUNDRIES. AMD has received a “B” rating, with analysts highlighting strong return on assets (4) and solid overall performance but cautioning on its price-to-earnings score (1). In contrast, GFS has a “C+” rating, facing challenges in return on equity (1) and return on assets (1), though it scores well on price-to-book (4). The consensus for AMD leans towards a buy, while GFS suggests a hold for cautious investors.
Stock Grades
Here are the latest stock ratings for Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS) from reputable grading companies.
Advanced Micro Devices, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | maintain | Overweight | 2025-11-12 |
| B of A Securities | maintain | Buy | 2025-11-12 |
| Wells Fargo | maintain | Overweight | 2025-11-12 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-12 |
| Wedbush | maintain | Outperform | 2025-11-12 |
| Roth Capital | maintain | Buy | 2025-11-12 |
| Rosenblatt | maintain | Buy | 2025-11-12 |
| Mizuho | maintain | Outperform | 2025-11-12 |
| Evercore ISI Group | maintain | Outperform | 2025-11-12 |
| Wedbush | maintain | Outperform | 2025-11-10 |
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, AMD continues to receive strong ratings with several “Overweight” and “Buy” recommendations, indicating confidence in its performance. In contrast, GFS has maintained a mix of “Neutral” and “Outperform” ratings, though it has seen a downgrade to “Underperform” from B of A Securities, which may signal caution for investors.
Target Prices
The consensus target prices from reliable analysts indicate positive expectations for both Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Advanced Micro Devices | 380 | 200 | 295.24 |
| GLOBALFOUNDRIES | 37 | 37 | 37 |
For AMD, the target consensus of 295.24 suggests a significant upside potential compared to its current price of 203.78. In contrast, GFS’s consensus of 37 closely aligns with its current price of 33.99, indicating a more stable outlook.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS) based on the most recent data.
| Criterion | AMD | GFS |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Moderate | Low |
| Innovation | Strong | Moderate |
| Global presence | Strong | Moderate |
| Market Share | 20% | 9% |
| Debt level | Low | Moderate |
Key takeaways: AMD demonstrates strengths in diversification, innovation, and global presence, while GFS struggles with profitability and market share. Investors should weigh these factors when considering potential investments.
Risk Analysis
The following table summarizes key risks associated with Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS):
| Metric | AMD | GFS |
|---|---|---|
| Market Risk | High (Beta: 1.913) | Moderate (Beta: 1.485) |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | High | Moderate |
Both companies face significant market risks, with AMD exhibiting greater volatility (Beta of 1.913) compared to GFS. Regulatory challenges are notably pronounced for GFS, while operational risks are a concern for both, especially GFS, given its recent financial performance and challenges in profitability.
Which one to choose?
When comparing Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS), AMD demonstrates stronger fundamentals. AMD has a market cap of approximately $203B, a net profit margin of 6.36%, and a bullish stock trend with a price change of +38.24% over the past year. Analysts have rated AMD with a “B”, indicating favorable conditions for growth investors. In contrast, GFS, with a market cap of $24B, recorded a net loss, a bearish trend with a -43.91% price change, and a C+ rating, reflecting greater operational challenges.
For growth-focused investors, I recommend AMD due to its promising growth trajectory and solid profitability metrics. Conversely, conservative investors seeking stability might find GFS appealing for its lower valuation ratios, though it carries higher operational 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 Advanced Micro Devices, Inc. and GLOBALFOUNDRIES Inc. to enhance your investment decisions:
