In the dynamic semiconductor industry, GLOBALFOUNDRIES Inc. (GFS) and Ambarella, Inc. (AMBA) stand out for their distinctive innovation strategies and market focus. GFS specializes in wafer fabrication and integrated circuits, while AMBA excels in advanced video processing chips for AI-driven applications. This comparison highlights their market overlap and technological strengths, guiding investors toward the most compelling opportunity in this fast-evolving sector. Let’s explore which company offers the best investment potential.
Table of contents
Companies Overview
I will begin the comparison between GLOBALFOUNDRIES Inc. and Ambarella, Inc. by providing an overview of these two companies and their main differences.
GLOBALFOUNDRIES Overview
GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide, manufacturing integrated circuits that power various electronic devices. Founded in 2009 and based in Malta, New York, the company produces a diverse range of semiconductor devices, including microprocessors, mobile application processors, and power management units. It provides mainstream wafer fabrication services and technologies, positioning itself as a key player in the semiconductor manufacturing industry.
Ambarella Overview
Ambarella, Inc., headquartered in Santa Clara, California, develops semiconductor solutions focused on video processing and compression. Since its incorporation in 2004, it has specialized in system-on-a-chip designs that integrate HD video and image processing with AI capabilities. Ambarella’s products target automotive cameras, security systems, robotics, and consumer electronics, emphasizing low power consumption and advanced computer vision functionalities.
Key similarities and differences
Both GLOBALFOUNDRIES and Ambarella operate in the semiconductor industry and are listed on NASDAQ. However, GLOBALFOUNDRIES focuses on semiconductor manufacturing and wafer fabrication for a broad range of integrated circuits, while Ambarella concentrates on specialized video processing chips with embedded AI for niche markets like automotive and security cameras. The companies differ significantly in scale, with GLOBALFOUNDRIES employing 13,000 staff compared to Ambarella’s 941 employees.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for GLOBALFOUNDRIES Inc. and Ambarella, Inc. for their most recent fiscal years.
| Metric | GLOBALFOUNDRIES Inc. (GFS) | Ambarella, Inc. (AMBA) |
|---|---|---|
| Market Cap | 23B | 2.7B |
| Revenue | 6.75B (2024) | 285M (2025) |
| EBITDA | 1.5B (2024) | -101M (2025) |
| EBIT | -64M (2024) | -127M (2025) |
| Net Income | -265M (2024) | -117M (2025) |
| EPS | -0.48 (2024) | -2.84 (2025) |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
GLOBALFOUNDRIES Inc.
GLOBALFOUNDRIES showed a positive revenue trend with a 39.15% increase from 2020 to 2024 but experienced a decline of 8.69% in the last year. Net income followed a similar pattern, growing 80.37% overall but turning negative in 2024 with a net loss of $265M. Margins weakened recently, with a gross margin of 24.46% but negative EBIT and net margins, reflecting operational challenges in 2024.
Ambarella, Inc.
Ambarella’s revenue grew by 27.75% over 2021-2025, accelerating 25.78% in the last year to $285M. However, net income suffered a severe overall decline of 95.91% and remained negative at -$117M in 2025. The company maintains a strong gross margin of 60.5% but posts a sharply negative EBIT margin of -44.44%, although recent margin improvements suggest operational recovery.
Which one has the stronger fundamentals?
GLOBALFOUNDRIES benefits from higher absolute revenues and net income growth over the period, but recent negative margins and shrinking profits raise concerns. Ambarella shows better margin stability and recent revenue and margin growth but struggles with persistent net losses and long-term income decline. Each company exhibits mixed income statement fundamentals requiring careful risk management.
Financial Ratios Comparison
The table below presents key financial ratios for GLOBALFOUNDRIES Inc. (GFS) and Ambarella, Inc. (AMBA) based on their most recent fiscal year data, facilitating a straightforward comparison.
| Ratios | GLOBALFOUNDRIES Inc. (2024) | Ambarella, Inc. (2025) |
|---|---|---|
| ROE | -2.46% | -20.86% |
| ROIC | -1.47% | -21.96% |
| P/E | -89.54 | -27.05 |
| P/B | 2.20 | 5.64 |
| Current Ratio | 2.11 | 2.65 |
| Quick Ratio | 1.57 | 2.36 |
| D/E (Debt-to-Equity) | 0.22 | 0.009 |
| Debt-to-Assets | 13.81% | 0.76% |
| Interest Coverage | -1.48 | 0 |
| Asset Turnover | 0.40 | 0.41 |
| Fixed Asset Turnover | 0.82 | 19.96 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
GLOBALFOUNDRIES Inc.
GLOBALFOUNDRIES shows a mixed ratio profile with significant weaknesses: negative net margin (-3.93%), ROE (-2.46%), and ROIC (-1.47%) indicate profitability challenges. Positive aspects include a strong current ratio (2.11), low debt levels (debt/equity 0.22), and favorable liquidity. The company does not pay dividends, reflecting a possible reinvestment strategy or growth focus given the absence of payout.
Ambarella, Inc.
Ambarella presents predominantly unfavorable profitability ratios, including a large negative net margin (-41.12%) and ROE (-20.86%), signaling ongoing losses. However, liquidity ratios like current ratio (2.65) and quick ratio (2.36) are favorable, alongside minimal debt (debt/equity 0.01). Ambarella also pays no dividend, likely due to negative earnings and prioritization of R&D and expansion efforts.
Which one has the best ratios?
Both GLOBALFOUNDRIES and Ambarella have unfavorable overall ratio evaluations, with Ambarella showing slightly higher liquidity and asset turnover strengths. GLOBALFOUNDRIES exhibits better leverage management but struggles with profitability and interest coverage. Given the balance of strengths and weaknesses, neither company displays decisively superior financial ratios at this time.
Strategic Positioning
This section compares the strategic positioning of GLOBALFOUNDRIES Inc. and Ambarella, Inc., including market position, key segments, and exposure to technological disruption:
GLOBALFOUNDRIES Inc.
- Large market cap with significant competitive pressure in semiconductors foundry services globally.
- Focuses on wafer fabrication and engineering pre-fabrication services for integrated circuits.
- Moderate exposure to technological disruption through semiconductor manufacturing innovations.
Ambarella, Inc.
- Smaller market cap, facing intense competition in semiconductor solutions for video and AI processing.
- Concentrated on semiconductor system-on-chip designs for video, AI, automotive, and industrial cameras.
- High exposure to disruption via AI-driven video processing and advanced imaging technologies.
GLOBALFOUNDRIES Inc. vs Ambarella, Inc. Positioning
GLOBALFOUNDRIES offers diversified semiconductor manufacturing services, supporting multiple device types, while Ambarella concentrates on video and AI semiconductor chips. GLOBALFOUNDRIES has broader business drivers; Ambarella’s niche focus may limit scale but targets innovative applications.
Which has the best competitive advantage?
GLOBALFOUNDRIES shows a slightly unfavorable moat with growing ROIC but still shedding value, whereas Ambarella has a very unfavorable moat with declining ROIC, indicating GLOBALFOUNDRIES currently holds a relatively stronger competitive advantage.
Stock Comparison
The stock price movements of GLOBALFOUNDRIES Inc. and Ambarella, Inc. over the past 12 months reveal contrasting trajectories, with notable shifts in momentum and trading volumes during recent weeks.
Trend Analysis
GLOBALFOUNDRIES Inc. experienced a bearish trend over the past year, with a price decline of 21.86% and accelerating downward momentum. The stock oscillated between a high of 55.66 and a low of 31.54, showing moderate volatility.
Ambarella, Inc. showed a bullish trend over the same period, gaining 16.9%, though with decelerating momentum. The stock traded within a wide range from 40.99 to 89.67, reflecting higher volatility compared to GLOBALFOUNDRIES.
Comparing both stocks, Ambarella delivered the highest market performance with a positive 16.9% price change, while GLOBALFOUNDRIES posted a significant negative return over the past year.
Target Prices
Here is the current target price consensus from recognized analysts for these semiconductor companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. | 40 | 37 | 38.5 |
| Ambarella, Inc. | 115 | 80 | 97.5 |
Analysts expect Ambarella to have significant upside potential compared to its current price of $64.6, while GLOBALFOUNDRIES’ target consensus slightly undercuts its current price of $41.53. This suggests a cautiously optimistic outlook on both stocks with differentiated risk-return profiles.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for GLOBALFOUNDRIES Inc. and Ambarella, Inc.:
Rating Comparison
GFS Rating
- Rating: C+, considered very favorable by analysts.
- Discounted Cash Flow Score: 3, a moderate score indicating fair valuation.
- ROE Score: 1, very unfavorable, showing weak efficiency in generating equity profit.
- ROA Score: 1, very unfavorable, suggesting poor asset utilization.
- Debt To Equity Score: 3, moderate level of financial risk.
- Overall Score: 2, moderate overall financial standing.
AMBA Rating
- Rating: C+, considered very favorable by analysts.
- Discounted Cash Flow Score: 3, also moderate, reflecting similar valuation.
- ROE Score: 1, very unfavorable, indicating low profit generation from equity.
- ROA Score: 1, very unfavorable, also showing poor asset efficiency.
- Debt To Equity Score: 4, favorable, indicating a stronger balance sheet.
- Overall Score: 2, moderate overall financial standing.
Which one is the best rated?
Both GLOBALFOUNDRIES and Ambarella share the same overall rating of C+ and moderate overall scores. Ambarella has a slight advantage in debt-to-equity, indicating lower financial risk, but both have very unfavorable returns on equity and assets.
Scores Comparison
Here is a comparison of GLOBALFOUNDRIES Inc. and Ambarella, Inc. scores:
GLOBALFOUNDRIES Inc. Scores
- Altman Z-Score: 2.61, classified in the grey zone, indicating moderate bankruptcy risk.
- Piotroski Score: 6, considered average financial strength.
Ambarella, Inc. Scores
- Altman Z-Score: 10.69, in the safe zone, indicating low bankruptcy risk.
- Piotroski Score: 3, considered very weak financial strength.
Which company has the best scores?
Ambarella has a significantly higher Altman Z-Score indicating lower bankruptcy risk, but GLOBALFOUNDRIES shows a stronger Piotroski score, suggesting better overall financial health.
Grades Comparison
The following analysis compares the latest available grades for GLOBALFOUNDRIES Inc. and Ambarella, Inc.:
GLOBALFOUNDRIES Inc. Grades
This table summarizes recent grades assigned to GLOBALFOUNDRIES by reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wedbush | Downgrade | Neutral | 2025-12-31 |
| B of A Securities | Maintain | Underperform | 2025-12-04 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-13 |
| JP Morgan | Maintain | Neutral | 2025-11-13 |
| Citigroup | Maintain | Neutral | 2025-11-13 |
| Wedbush | Maintain | Outperform | 2025-11-13 |
| B of A Securities | Downgrade | Underperform | 2025-10-13 |
| Deutsche Bank | Maintain | Buy | 2025-08-06 |
| Morgan Stanley | Maintain | Equal Weight | 2025-08-06 |
| Wedbush | Maintain | Outperform | 2025-08-06 |
GLOBALFOUNDRIES has a mixed grade trend, with recent downgrades to Neutral and Underperform contrasting earlier Outperform and Buy ratings.
Ambarella, Inc. Grades
This table presents recent grades awarded to Ambarella by established grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Neutral | 2025-11-26 |
| Needham | Maintain | Buy | 2025-11-26 |
| Stifel | Maintain | Buy | 2025-11-26 |
| Rosenblatt | Maintain | Buy | 2025-11-26 |
| Rosenblatt | Maintain | Buy | 2025-11-24 |
| Stifel | Maintain | Buy | 2025-08-29 |
| Needham | Maintain | Buy | 2025-08-29 |
| Northland Capital Markets | Maintain | Outperform | 2025-08-29 |
| Morgan Stanley | Maintain | Overweight | 2025-08-29 |
| Oppenheimer | Maintain | Perform | 2025-08-29 |
Ambarella’s grades show a consistent Buy or Outperform consensus, with no recent downgrades.
Which company has the best grades?
Ambarella, Inc. has received generally stronger and more consistent Buy and Outperform ratings compared to GLOBALFOUNDRIES, which faces downgrades and mixed opinions. This difference may affect investor perception of growth potential and risk.
Strengths and Weaknesses
Below is a comparison table summarizing the main strengths and weaknesses of GLOBALFOUNDRIES Inc. (GFS) and Ambarella, Inc. (AMBA) based on recent financial health, market position, and innovation metrics.
| Criterion | GLOBALFOUNDRIES Inc. (GFS) | Ambarella, Inc. (AMBA) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from Water Fabrication (~$6.1B in 2024) and Engineering Services ($652M) | Limited: Focused product range in semiconductor solutions |
| Profitability | Low: Negative net margin (-3.93%) and ROIC (-1.47%), value destroying but improving ROIC trend | Very low: Negative net margin (-41.12%), ROIC (-21.96%), declining profitability |
| Innovation | Moderate: Engineering services contribute but overall returns below cost of capital | Mixed: High fixed asset turnover (19.96) but declining ROIC indicates challenges |
| Global presence | Strong: Large-scale water fabrication capacity with global clientele | Moderate: Niche semiconductor market presence |
| Market Share | Significant in semiconductor manufacturing | Smaller niche market share with specialized products |
Key takeaways: Both companies are currently value destroyers, with profitability metrics below their cost of capital. GLOBALFOUNDRIES shows a positive ROIC trend indicating potential improvement, while Ambarella faces more severe profitability declines. Investors should weigh growth prospects and risk tolerance carefully.
Risk Analysis
Below is a comparative overview of key risks facing GLOBALFOUNDRIES Inc. (GFS) and Ambarella, Inc. (AMBA) as of 2026:
| Metric | GLOBALFOUNDRIES Inc. (GFS) | Ambarella, Inc. (AMBA) |
|---|---|---|
| Market Risk | High beta 1.485; semiconductor cyclicality affects demand | Very high beta 1.953; volatile demand in niche markets |
| Debt level | Moderate debt-to-equity 0.22; manageable leverage | Very low debt-to-equity 0.01; strong balance sheet |
| Regulatory Risk | US-based with exposure to export controls and tech regulations | US-based; faces regulatory scrutiny in AI and video tech |
| Operational Risk | Large-scale fabs with complexity; supply chain dependency | Smaller scale; reliance on innovation and chip design success |
| Environmental Risk | Moderate; semiconductor manufacturing has notable environmental impact | Lower impact; chip design focus reduces environmental footprint |
| Geopolitical Risk | Potential exposure to US-China tech tensions affecting supply | Less direct exposure but sensitive to global tech trade policies |
The most impactful risks here are market volatility and operational complexity for GLOBALFOUNDRIES, given its large manufacturing footprint and semiconductor cycle exposure. Ambarella’s critical risks center on market volatility and innovation success given its high beta and niche product focus. Both companies have favorable debt profiles, which reduces financial distress risks.
Which Stock to Choose?
GLOBALFOUNDRIES Inc. (GFS) shows a mixed income evolution with recent declines but overall growth since 2020. Financial ratios reveal mostly unfavorable profitability metrics yet favorable liquidity and debt levels. The company has a slightly unfavorable moat rating and a very favorable overall rating.
Ambarella, Inc. (AMBA) demonstrates favorable recent revenue and profit growth but negative long-term net income trends. Its financial ratios are globally unfavorable, despite strong liquidity and low debt. The company has a very unfavorable moat and a very favorable overall rating.
For investors, GFS might appear more suitable for those prioritizing improving profitability and moderate risk tolerance, whereas AMBA could be seen as fitting for those focused on recent growth trends but accepting higher profitability challenges. The choice could depend on the investor’s preference for stability versus growth potential.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of GLOBALFOUNDRIES Inc. and Ambarella, Inc. to enhance your investment decisions:
