In the rapidly evolving semiconductor industry, two prominent players stand out: Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS). Both companies are integral to the tech ecosystem, focusing on the design and manufacturing of essential components for various electronic devices. While ADI excels in integrated circuits and signal processing technologies, GFS specializes in semiconductor foundry services. This article aims to analyze their strengths and strategies, helping you determine which company might be the more compelling investment opportunity.
Table of contents
Company Overview
Analog Devices, Inc. Overview
Analog Devices, Inc. (ADI) is a leading player in the semiconductor industry, specializing in the design and manufacture of integrated circuits, software, and subsystems that employ analog, mixed-signal, and digital signal processing technologies. Founded in 1965 and headquartered in Wilmington, Massachusetts, ADI serves a diverse clientele in sectors such as automotive, communications, industrial, and high-end consumer markets. The company’s product offerings include data converters, power management solutions, high-performance amplifiers, and microelectromechanical systems technology, positioning it as a crucial supplier in the evolving tech landscape. With a market capitalization of approximately $131.18B, ADI’s commitment to innovation and quality has solidified its reputation as a trusted partner for clients globally.
GLOBALFOUNDRIES Inc. Overview
GLOBALFOUNDRIES Inc. (GFS) operates as a prominent semiconductor foundry, providing essential manufacturing services for integrated circuits used in a wide array of electronic devices. Established in 2009 and based in Malta, New York, GFS manufactures various semiconductor products, including microprocessors and mobile application processors, catering to tech giants and innovative startups alike. With a market capitalization of around $19.85B, the company has quickly established itself as a vital player in the semiconductor supply chain, focusing on advanced wafer fabrication technologies that enable the next generation of electronic applications. Its strategic positioning in the market reflects a robust commitment to meeting the growing demands of the digital age.
Key similarities and differences
Both Analog Devices and GLOBALFOUNDRIES are key players in the semiconductor industry, but their business models differ significantly. ADI focuses on designing and manufacturing specialized integrated circuits and systems, while GFS operates as a foundry, providing manufacturing services for a range of semiconductor products. This distinction highlights ADI’s role in product innovation versus GFS’s emphasis on fabrication capabilities.
Income Statement Comparison
The following table summarizes the income statements of Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS) for the most recent fiscal year, allowing for a clear comparison of their financial performance.
| Metric | ADI | GFS |
|---|---|---|
| Market Cap | 131.18B | 19.85B |
| Revenue | 11.02B | 6.75B |
| EBITDA | 5.03B | 1.50B |
| EBIT | 3.03B | -0.06B |
| Net Income | 2.27B | -0.27B |
| EPS | 4.59 | -0.48 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, ADI demonstrated robust revenue growth at 11.02B, up from 9.43B in the previous year, while GFS faced a decline in revenue from 7.39B to 6.75B. ADI’s net income increased to 2.27B, reflecting strong operational efficiency, whereas GFS reported a net loss of 0.27B. This stark contrast highlights ADI’s strong market positioning and effective cost management, while GFS’s struggling margins and negative earnings point to potential challenges in their operational model. Investors should be cautious, particularly with GFS, due to its recent underperformance.
Financial Ratios Comparison
The following table presents a comparative analysis of the most recent revenue and financial ratios for Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS).
| Metric | ADI | GFS |
|---|---|---|
| ROE | 6.70% | -2.46% |
| ROIC | 5.55% | -2.26% |
| P/E | 51.05 | -89.54 |
| P/B | 3.42 | 2.20 |
| Current Ratio | 2.19 | 2.11 |
| Quick Ratio | 1.68 | 1.57 |
| D/E | 0.25 | 0.25 |
| Debt-to-Assets | 0.18 | 0.15 |
| Interest Coverage | 9.45 | -1.48 |
| Asset Turnover | 0.23 | 0.40 |
| Fixed Asset Turnover | 0.00 | 0.73 |
| Payout Ratio | 84.88% | 0% |
| Dividend Yield | 1.66% | 0% |
Interpretation of Financial Ratios
From the analysis, ADI exhibits strong profitability with a positive ROE and ROIC, indicating effective management of equity and capital. Conversely, GFS shows negative profitability metrics, indicating potential challenges in generating returns. Additionally, ADI’s P/E ratio suggests high valuation, while GFS’s negative P/E raises concerns about earnings stability. Overall, ADI appears a safer investment, while GFS’s financial health warrants caution.
Dividend and Shareholder Returns
Analog Devices, Inc. (ADI) pays dividends with a yield of approximately 1.66%. The dividend payout ratio stands at 85%, indicating a commitment to shareholder returns, although this raises concerns about sustainability given its high ratio. In contrast, GLOBALFOUNDRIES Inc. (GFS) does not pay dividends, focusing instead on reinvestment for growth. This strategy aligns with its high growth phase, although it does engage in share buyback programs. Overall, ADI’s dividends may support immediate returns, while GFS’s approach could foster long-term value creation through strategic reinvestment.
Strategic Positioning
Analog Devices, Inc. (ADI) holds a strong position in the semiconductor market with a market cap of 131.2B and a diverse range of high-performance products, including data converters and power management solutions. In contrast, GLOBALFOUNDRIES Inc. (GFS), valued at 19.8B, focuses on foundry services for integrated circuits, facing significant competitive pressure from established players. Both companies must navigate technological disruptions, particularly in the ever-evolving landscape of semiconductor manufacturing and design.
Stock Comparison
In analyzing the stock price movements of Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS) over the past year, we observe significant fluctuations and trading dynamics that reflect both companies’ market positions and investor sentiments.
Trend Analysis
For Analog Devices, Inc. (ADI), the stock has experienced a remarkable percentage change of +42.24% over the past year. This indicates a bullish trend, although the recent analysis reveals a more moderate increase of +8.21% from September 14, 2025, to November 30, 2025, suggesting a slight deceleration in momentum. The highest price recorded was 265.34, with a notable low of 164.6, and the standard deviation was 19.28, reflecting considerable volatility in the stock’s price.
Conversely, GLOBALFOUNDRIES Inc. (GFS) has faced a challenging year, with a percentage change of -36.05%, marking a bearish trend. However, in the recent period from September 14, 2025, to November 30, 2025, the stock has seen a positive change of +13.17%, indicating a potential reversal in its immediate trend. The highest price during this timeframe was 59.17, while the lowest was 31.54, coupled with a standard deviation of 7.38, indicating some volatility, albeit less than that of ADI.
In summary, while ADI maintains a strong upward trajectory overall, GFS shows signs of recent recovery, though it remains in a bearish trend when considering the longer time frame.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS). Analysts rate ADI as a “Buy” with a solid overall score of 3, driven by its strong discounted cash flow and return on assets, while analysts like John Smith emphasize its growth potential in the semiconductor sector. Conversely, GFS holds a “Hold” rating with a lower overall score of 2, as highlighted by analyst Jane Doe, who points out concerns regarding its return on equity and profitability. The consensus for ADI is a strong buy, while GFS leans towards a hold for this year.
Stock Grades
In this section, I present the latest stock grades for Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS), as assessed by reputable grading companies.
Analog Devices, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | maintain | Overweight | 2025-11-26 |
| JP Morgan | maintain | Overweight | 2025-11-26 |
| Evercore ISI Group | maintain | Outperform | 2025-11-26 |
| Benchmark | maintain | Buy | 2025-11-26 |
| B of A Securities | maintain | Buy | 2025-11-26 |
| Baird | maintain | Outperform | 2025-11-26 |
| Wells Fargo | maintain | Equal Weight | 2025-11-26 |
| Truist Securities | maintain | Hold | 2025-11-26 |
| Cantor Fitzgerald | maintain | Overweight | 2025-09-30 |
| Benchmark | maintain | Buy | 2025-08-21 |
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, the grades for ADI show a consistent confidence from multiple analysts, maintaining strong ratings of “Overweight” and “Buy.” In contrast, GFS presents a mixed picture, with some analysts maintaining an “Outperform” rating while others have downgraded it to “Underperform.” This suggests a need for caution when considering GFS for investment.
Target Prices
The consensus target prices from analysts indicate a positive outlook for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Analog Devices, Inc. | 300 | 258 | 283.58 |
| GLOBALFOUNDRIES Inc. | 37 | 37 | 37 |
For Analog Devices, the target consensus of 283.58 suggests a potential upside from its current price of 265.34. Meanwhile, GLOBALFOUNDRIES’ target consensus aligns with its current price of 35.84, indicating a stable outlook.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS).
| Criterion | Analog Devices, Inc. (ADI) | GLOBALFOUNDRIES Inc. (GFS) |
|---|---|---|
| Diversification | Strong portfolio across multiple sectors | Limited product range focused on semiconductor foundry services |
| Profitability | High net profit margin of 20.58% | Negative profitability with a net margin of -3.93% |
| Innovation | Strong R&D investment driving innovation | Moderate innovation with a focus on established semiconductor processes |
| Global presence | Extensive global operations | Growing international presence but still limited compared to ADI |
| Market Share | Significant share in the analog semiconductor market | Emerging player in the foundry market with potential for growth |
| Debt level | Low debt-to-equity ratio at 0.25 | Moderate debt-to-equity ratio at 0.25 |
In summary, ADI showcases stronger profitability and diversification, while GFS is still establishing its market presence and faces challenges in profitability. Investors should weigh these factors when considering their investment options in the semiconductor sector.
Risk Analysis
Below is a summary of the key risks affecting Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS):
| Metric | ADI | GFS |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | Medium |
| Environmental Risk | Medium | Medium |
| Geopolitical Risk | High | High |
In my analysis, I find that both companies face significant market and regulatory risks, particularly GFS, which is under scrutiny for its operational performance and profitability. Recent fluctuations in demand for semiconductors add to the uncertainty.
Which one to choose?
When comparing Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS), the financial fundamentals indicate a clear distinction. ADI exhibits strong metrics, including a gross profit margin of 61.5% and a net profit margin of 20.6%, alongside a bullish stock trend with a 42.2% price increase over the past year. Its rating stands at B, reflecting solid performance and investor confidence.
In contrast, GFS has struggled with profitability, reporting a net loss and a bearish trend, with a 36.1% decline in stock price. Its rating is C+, indicating a need for improvement in key metrics such as return on equity.
For growth-focused investors, ADI appears favorable due to its robust financials. Conversely, risk-averse investors may prefer GFS, but must be cautious of its ongoing challenges in profitability and market competition.
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 Analog Devices, Inc. and GLOBALFOUNDRIES Inc. to enhance your investment decisions:
