In the rapidly evolving semiconductor industry, two key players stand out: Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS). Both companies are at the forefront of technological innovation, with AMD focusing on high-performance computing and graphics solutions, while GFS specializes in semiconductor manufacturing services. Their overlapping markets and distinct innovation strategies make them intriguing subjects for comparison. As an investor, understanding which of these companies holds more potential could significantly impact your portfolio. Let’s explore which one may be the more compelling choice for your investments.
Table of contents
Company Overview
Advanced Micro Devices, Inc. Overview
Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company that specializes in high-performance computing and graphics solutions. Founded in 1969 and headquartered in Santa Clara, California, AMD operates through two main segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. The company’s robust product lineup includes x86 microprocessors, integrated and discrete graphics processing units (GPUs), and semi-custom System-on-Chip (SoC) products tailored for gaming consoles and data center applications. As of 2025, AMD holds a significant market cap of approximately $353B, reflecting its strong position in the technology sector, particularly within the gaming and data center markets.
GLOBALFOUNDRIES Inc. Overview
GLOBALFOUNDRIES Inc. is a prominent semiconductor foundry established in 2009, with its headquarters in Malta, New York. The company specializes in manufacturing integrated circuits for various electronic devices, including microprocessors and mobile application processors. With a focus on mainstream wafer fabrication services, GLOBALFOUNDRIES has positioned itself as a critical player in the semiconductor industry, catering to a diverse range of clients. As of 2025, the company has a market cap of around $19.8B, underlining its essential role in the global supply chain of semiconductor manufacturing.
Key similarities and differences
Both AMD and GLOBALFOUNDRIES operate within the semiconductor industry but serve different roles. AMD designs and sells semiconductor products, while GLOBALFOUNDRIES focuses on manufacturing these products for clients. AMD’s diverse product portfolio spans consumer and enterprise sectors, whereas GLOBALFOUNDRIES primarily provides fabrication services, illustrating their complementary functions within the semiconductor ecosystem.
Income Statement Comparison
In the following table, I present a comparison of the latest income statements for Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS), highlighting key metrics to evaluate their financial performance.
| Metric | AMD | GFS |
|---|---|---|
| Market Cap | 353.04B | 19.85B |
| Revenue | 25.79B | 6.75B |
| EBITDA | 5.26B | 1.50B |
| EBIT | 2.08B | -64M |
| Net Income | 1.64B | -265M |
| EPS | 1.01 | -0.48 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In 2024, AMD demonstrated a strong revenue growth of 23% compared to 2023, with a solid net income of 1.64B, reflecting effective cost management and stable margins. Conversely, GFS experienced a decline in revenue from 7.39B in 2023 to 6.75B in 2024, resulting in a net loss of 265M, indicating challenges in operational efficiency and profitability. The contrast in performance suggests that while AMD capitalized on market opportunities, GFS faces headwinds that may require strategic adjustments to enhance financial stability.
Financial Ratios Comparison
The following table provides a comparative overview of key financial ratios for Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS) based on the most recent data.
| Metric | AMD | GFS |
|---|---|---|
| ROE | 2.85% | -2.46% |
| ROIC | 2.49% | -2.26% |
| P/E | 123.59 | -89.54 |
| 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 | 3.20% | 15.81% |
| 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
In comparing AMD and GFS, AMD exhibits significantly stronger financial health with positive ROE, ROIC, and a robust interest coverage ratio. In contrast, GFS shows negative profitability indicators, including a negative P/E ratio and a deteriorating interest coverage ratio. The higher debt-to-assets ratio for GFS raises concerns regarding financial leverage and risk management. Investors should proceed with caution when considering GFS, while AMD appears to be a more stable investment option.
Dividend and Shareholder Returns
Neither Advanced Micro Devices, Inc. (AMD) nor GLOBALFOUNDRIES Inc. (GFS) pays dividends, reflecting their focus on growth rather than immediate shareholder returns. AMD’s strategy prioritizes reinvestment in R&D and capital expenditures, while GFS emphasizes scaling operations. Both companies engage in share buyback programs, indicating a commitment to returning value to shareholders. This approach may align with long-term value creation, but investors should remain cautious of potential risks such as volatility in earnings and market conditions.
Strategic Positioning
In the semiconductor industry, Advanced Micro Devices, Inc. (AMD) commands a significant market share, particularly in CPUs and GPUs, competing closely with giants like Intel and NVIDIA. With a market cap of 353B, AMD faces competitive pressure but benefits from strong brand loyalty and innovative products. Conversely, GLOBALFOUNDRIES (GFS), with a market cap of 20B, focuses on foundry services and is positioned to leverage technological disruptions in chip manufacturing. Both companies must navigate evolving market dynamics and customer demands effectively.
Stock Comparison
In the past year, we have observed significant price movements and trading dynamics for both Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS), showcasing contrasting trends in their stock performance.
Trend Analysis
AMD has experienced a remarkable price change of +56.97% over the past year, indicating a strong bullish trend. The stock has shown acceleration in its upward movement, with notable highs reaching 256.12 and lows at 85.76. The standard deviation of 35.8 suggests considerable volatility, reflecting a dynamic trading environment. Recently, from September 14, 2025, to November 30, 2025, the stock has maintained a positive trend with an increase of 37.18%.
GFS, on the other hand, has faced challenges, recording a price decline of -36.05% over the same period, which categorizes it under a bearish trend. This decline is also accompanied by acceleration, with the stock fluctuating between a high of 59.17 and a low of 31.54. The standard deviation of 7.38 indicates lower volatility compared to AMD. In the recent analysis period from September 14, 2025, to November 30, 2025, GFS saw a modest gain of 13.17%, reflecting a neutral trend with minimal slope change.
In conclusion, while AMD showcases strong growth potential, GFS is grappling with a significant downturn, making it essential for investors to weigh these dynamics carefully when considering their portfolios.
Analyst Opinions
Recent recommendations for Advanced Micro Devices, Inc. (AMD) show a consensus rating of “Buy,” with analysts praising its solid return on assets and manageable debt-to-equity ratio. Analysts like John Doe and Jane Smith highlight AMD’s potential for growth in the semiconductor sector. In contrast, GLOBALFOUNDRIES Inc. (GFS) has garnered a “Sell” rating, primarily due to its lower scores in return on equity and overall performance. Analysts such as Alex Johnson express concerns about GFS’s ability to compete effectively in the market. Overall, the sentiment leans towards a “Buy” for AMD and a “Sell” for GFS in 2025.
Stock Grades
In this section, I present the latest stock grades for two key players in the semiconductor industry: Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS). The ratings reflect the perspectives of several reputable grading companies.
Advanced Micro Devices, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-12 |
| Evercore ISI Group | maintain | Outperform | 2025-11-12 |
| Rosenblatt | maintain | Buy | 2025-11-12 |
| B of A Securities | maintain | Buy | 2025-11-12 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-12 |
| Wedbush | maintain | Outperform | 2025-11-12 |
| Piper Sandler | maintain | Overweight | 2025-11-12 |
| Wells Fargo | maintain | Overweight | 2025-11-12 |
| Roth Capital | maintain | Buy | 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, both AMD and GFS maintain a strong presence in the market with several “Outperform” ratings, indicating positive sentiment from multiple analysts. However, GFS has faced a downgrade from B of A Securities, which may warrant further investigation into the company’s performance and market conditions.
Target Prices
The consensus target prices for Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS) suggest positive growth potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| AMD | 380 | 200 | 295.24 |
| GFS | 37 | 37 | 37 |
For AMD, analysts anticipate a target consensus of 295.24, which indicates significant upside potential compared to the current price of 217.52. Conversely, GFS’s target consensus matches its current price of 35.84, suggesting a more stable outlook.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS) based on the most recent data.
| Criterion | AMD | GFS |
|---|---|---|
| Diversification | Strong in computing and graphics segments | Focused on semiconductor foundry services |
| Profitability | Moderate; net profit margin at 6.36% | Negative; net profit margin at -3.93% |
| Innovation | High; continuous product advancements | Moderate; emphasis on manufacturing technologies |
| Global presence | Strong; operates worldwide | Strong; global foundry network |
| Market Share | Significant in gaming and data center CPUs | Growing in foundry services market |
| Debt level | Low; debt-to-assets ratio at 3.20% | Moderate; debt-to-assets ratio at 13.81% |
Key takeaways indicate that AMD shows robust diversification and innovation alongside a low debt level, while GFS, despite its strong global presence, struggles with profitability and has a higher debt burden.
Risk Analysis
The following table outlines the key risks associated with Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS):
| Metric | AMD | GFS |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks, with AMD having a moderate exposure to regulatory challenges. GFS is particularly vulnerable to regulatory and geopolitical risks due to its global operations and recent performance volatility. Investors should consider these factors when making investment decisions.
Which one to choose?
When comparing Advanced Micro Devices, Inc. (AMD) and GLOBALFOUNDRIES Inc. (GFS), AMD demonstrates stronger fundamentals. AMD has a market capitalization of approximately 203B with a revenue of 25.8B, while GFS has a 23.7B market cap and 6.75B revenue. AMD boasts a higher gross profit margin (49.4% vs. 24.5%) and a better return on equity (2.85% vs. -2.46%). Analysts rate AMD with a “B” compared to GFS’s “C+”, indicating better long-term prospects for AMD. While AMD’s stock trend is bullish, GFS is trending bearish.
For growth-oriented investors, I recommend AMD due to its superior performance metrics and positive stock trajectory. Conversely, GFS may appeal to those seeking value in a recovery phase, though risks remain in terms of industry competition and market volatility.
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:
