In the fast-evolving semiconductor industry, GLOBALFOUNDRIES Inc. (GFS) and SkyWater Technology, Inc. (SKYT) stand out as key players shaping innovation and manufacturing capabilities. Both companies operate in semiconductor fabrication but differ in scale, market focus, and technology strategies. This comparison aims to highlight their strengths and risks, helping you decide which stock might best enhance your investment portfolio in 2026. Let’s explore which company offers the most compelling opportunity for investors today.
Table of contents
Companies Overview
I will begin the comparison between GLOBALFOUNDRIES Inc. and SkyWater Technology, Inc. by providing an overview of these two companies and their main differences.
GLOBALFOUNDRIES Inc. Overview
GLOBALFOUNDRIES Inc. is a semiconductor foundry that manufactures integrated circuits worldwide. Its products include microprocessors, mobile application processors, network processors, and microelectromechanical systems, among others. Founded in 2009 and based in Malta, New York, the company plays a significant role in enabling various electronic devices through wafer fabrication services and semiconductor technologies.
SkyWater Technology, Inc. Overview
SkyWater Technology, Inc. provides semiconductor development and manufacturing services, focusing on engineering and process development support. Founded in 2017 and headquartered in Bloomington, Minnesota, it serves industries such as aerospace, automotive, bio-health, and consumer electronics. The company’s offerings include manufacturing silicon-based analog, mixed-signal, and rad-hard integrated circuits, catering to specialized customer needs.
Key similarities and differences
Both GLOBALFOUNDRIES and SkyWater operate in the semiconductor industry, focusing on manufacturing integrated circuits and related services. GLOBALFOUNDRIES is larger, with a broader product range and workforce, while SkyWater emphasizes co-creation and niche markets like aerospace and defense. Their business models align in semiconductor production but differ in scale, customer focus, and service specialization.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for GLOBALFOUNDRIES Inc. and SkyWater Technology, Inc. for the fiscal year 2024.
| Metric | GLOBALFOUNDRIES Inc. (GFS) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| Market Cap | 23B | 1.5B |
| Revenue | 6.75B | 342M |
| EBITDA | 1.5B | 25M |
| EBIT | -64M | 7M |
| Net Income | -265M | -7M |
| EPS | -0.48 | -0.14 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
GLOBALFOUNDRIES Inc.
GLOBALFOUNDRIES’ revenue grew 39.15% from 2020 to 2024 but declined 8.69% in 2024 alone, with net income following a similar pattern, growing overall by 80.37% but turning negative in the latest year. Gross margin remained relatively stable at 24.46%, though EBIT and net margins turned unfavorable in 2024, reflecting declining profitability and operational challenges in the most recent period.
SkyWater Technology, Inc.
SkyWater’s revenue increased significantly by 143.72% over 2020–2024, with a 19.39% rise in 2024. Net income also improved, though it remained negative, with a 67.05% overall increase and an 81.5% one-year margin growth. Gross margin hovered at 20.34%, with EBIT margin neutral at 1.92%. The company showed improving profitability and margin expansion in the latest fiscal year.
Which one has the stronger fundamentals?
SkyWater Technology demonstrates stronger fundamentals with predominantly favorable growth metrics, improved margins, and a positive EBIT margin, despite net losses. GLOBALFOUNDRIES shows solid long-term revenue and net income growth but suffered a marked decline in 2024 with negative margins and profitability. Overall, SkyWater’s recent improvements suggest better operational momentum.
Financial Ratios Comparison
Below is a comparison of key financial ratios for GLOBALFOUNDRIES Inc. (GFS) and SkyWater Technology, Inc. (SKYT) based on their most recent fiscal year data from 2024.
| Ratios | GLOBALFOUNDRIES Inc. (GFS) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| ROE | -2.46% | -11.79% |
| ROIC | -1.47% | 3.40% |
| P/E | -89.5 | -100.3 |
| P/B | 2.20 | 11.82 |
| Current Ratio | 2.11 | 0.86 |
| Quick Ratio | 1.57 | 0.76 |
| D/E | 0.22 | 1.33 |
| Debt-to-Assets | 13.8% | 24.5% |
| Interest Coverage | -1.48 | 0.74 |
| Asset Turnover | 0.40 | 1.09 |
| Fixed Asset Turnover | 0.82 | 2.07 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
GLOBALFOUNDRIES Inc.
GLOBALFOUNDRIES shows mixed financial ratios with unfavorable net margin (-3.93%) and return on equity (-2.46%), indicating profitability challenges. Its low debt-to-equity ratio (0.22) and strong liquidity (current ratio 2.11) are favorable. The company does not pay dividends, reflecting a focus on reinvestment or growth rather than shareholder payouts.
SkyWater Technology, Inc.
SkyWater Technology displays generally weak ratios with negative net margin (-1.98%) and return on equity (-11.79%). High debt-to-equity (1.33) and poor liquidity ratios (current ratio 0.86) raise concerns. The absence of dividends aligns with its ongoing investment phase, possibly prioritizing R&D and capital expenditures over distributions.
Which one has the best ratios?
Both companies show predominantly unfavorable ratios, yet GLOBALFOUNDRIES presents stronger liquidity and lower leverage compared to SkyWater Technology. Despite profitability issues, GLOBALFOUNDRIES’ financial structure appears more stable, while SkyWater faces greater liquidity and debt challenges. Overall, neither company demonstrates a clearly superior ratio profile.
Strategic Positioning
This section compares the strategic positioning of GLOBALFOUNDRIES Inc. and SkyWater Technology, Inc., including market position, key segments, and exposure to technological disruption:
GLOBALFOUNDRIES Inc.
- Large semiconductor foundry with significant market cap and NASDAQ Global Select listing; faces competitive pressure in mainstream fabrication.
- Key segments include wafer fabrication ($6.1B in 2024) and engineering/pre-fabrication services ($652M in 2024); broad semiconductor device manufacturing.
- Operates in established semiconductor foundry space; no explicit mention of disruption but competes amid evolving semiconductor technologies.
SkyWater Technology, Inc.
- Smaller semiconductor developer and manufacturer with lower market cap; trades on NASDAQ Capital Market with higher beta and volatility.
- Focuses on advanced technology services and wafer services totaling approximately $133M in 2024; serves niche sectors like aerospace, defense, and IoT.
- Provides engineering support and co-development with customers; exposed to innovation in mixed-signal, power discrete, and rad-hard circuits.
GLOBALFOUNDRIES Inc. vs SkyWater Technology, Inc. Positioning
GLOBALFOUNDRIES pursues a diversified semiconductor foundry model with large-scale wafer fabrication and engineering services, offering scale advantages. SkyWater focuses on specialized advanced technology services and niche markets, implying more concentrated exposure but potential agility in innovation.
Which has the best competitive advantage?
Both companies have a slightly unfavorable moat status, shedding value but with growing ROIC trends. Neither currently demonstrates a strong sustainable competitive advantage based on ROIC versus WACC, indicating caution in assessing long-term value creation.
Stock Comparison
The past year showcased contrasting stock dynamics for GLOBALFOUNDRIES Inc. (GFS) and SkyWater Technology, Inc. (SKYT), with GFS experiencing a bearish trend and SKYT a strong bullish trend marked by significant price gains and increasing trading volumes.
Trend Analysis
GLOBALFOUNDRIES Inc. (GFS) exhibited a bearish trend over the past 12 months, with a -21.86% price change and accelerating decline. The stock fluctuated between 31.54 and 55.66, showing elevated volatility (std deviation 6.45).
SkyWater Technology, Inc. (SKYT) demonstrated a bullish trend with a 236.8% price increase over the year and accelerating gains. Prices ranged from 6.1 to 32.03, accompanied by moderate volatility (std deviation 4.41).
Comparing both, SKYT delivered the highest market performance with a strong bullish trend and substantial price appreciation, while GFS showed a pronounced bearish trajectory.
Target Prices
The current consensus target prices for GLOBALFOUNDRIES Inc. and SkyWater Technology, Inc. reflect modest analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. | 40 | 37 | 38.5 |
| SkyWater Technology, Inc. | 25 | 25 | 25 |
Analysts expect GLOBALFOUNDRIES shares to trade slightly below the current price of $41.53, indicating limited upside. Conversely, SkyWater Technology’s consensus target of $25 is well below its current price of $32.03, suggesting a bearish outlook.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for GLOBALFOUNDRIES Inc. and SkyWater Technology, Inc.:
Rating Comparison
GLOBALFOUNDRIES Inc. Rating
- Rating: C+ with a very favorable status
- Discounted Cash Flow Score: 3 (moderate)
- ROE Score: 1 (very unfavorable)
- ROA Score: 1 (very unfavorable)
- Debt To Equity Score: 3 (moderate)
- Overall Score: 2 (moderate)
SkyWater Technology, Inc. Rating
- Rating: B+ with a very favorable status
- Discounted Cash Flow Score: 1 (very unfavorable)
- ROE Score: 5 (very favorable)
- ROA Score: 5 (very favorable)
- Debt To Equity Score: 1 (very unfavorable)
- Overall Score: 3 (moderate)
Which one is the best rated?
Based on the provided data, SkyWater Technology holds a higher overall rating (B+) and stronger ROE and ROA scores, while GLOBALFOUNDRIES has better scores on discounted cash flow and debt-to-equity measures. SkyWater’s overall score is slightly better.
Scores Comparison
The scores comparison of GLOBALFOUNDRIES Inc. and SkyWater Technology, Inc. highlights their financial stability and strength:
GFS Scores
- Altman Z-Score: 2.61, in the grey zone, indicating moderate bankruptcy risk.
- Piotroski Score: 6, classified as average financial strength.
SKYT Scores
- Altman Z-Score: 2.20, also in the grey zone, showing moderate bankruptcy risk.
- Piotroski Score: 5, classified as average financial strength.
Which company has the best scores?
Based solely on the provided scores, GLOBALFOUNDRIES shows a slightly higher Altman Z-Score and Piotroski Score than SkyWater, suggesting marginally better financial metrics within the same risk category.
Grades Comparison
The following presents the recent grades and rating trends for GLOBALFOUNDRIES Inc. and SkyWater Technology, Inc.:
GLOBALFOUNDRIES Inc. Grades
This table summarizes recent grades assigned by recognized financial institutions to GLOBALFOUNDRIES Inc.:
| 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 exhibits a mixed rating profile, with several neutral and underperform grades alongside consistent outperform and buy recommendations, indicating a varied analyst perspective.
SkyWater Technology, Inc. Grades
This table presents recent grades assigned by reputable firms to SkyWater Technology, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2025-11-06 |
| Piper Sandler | Maintain | Overweight | 2025-11-06 |
| TD Cowen | Maintain | Buy | 2025-11-06 |
| Needham | Maintain | Buy | 2025-08-07 |
| Needham | Maintain | Buy | 2025-05-08 |
| Needham | Maintain | Buy | 2025-02-27 |
| Needham | Maintain | Buy | 2024-11-11 |
| Piper Sandler | Maintain | Overweight | 2024-10-25 |
| Piper Sandler | Maintain | Overweight | 2024-08-08 |
| Needham | Maintain | Buy | 2024-05-09 |
SkyWater Technology shows a consistent pattern of buy and overweight ratings, reflecting a generally positive analyst consensus over time.
Which company has the best grades?
Both GLOBALFOUNDRIES and SkyWater Technology have a consensus rating of “Buy,” but SkyWater’s grades are more uniformly positive with repeated buy and overweight ratings. In contrast, GLOBALFOUNDRIES presents a wider range of ratings including some underperform and neutral grades, potentially indicating higher uncertainty for investors.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses of GLOBALFOUNDRIES Inc. (GFS) and SkyWater Technology, Inc. (SKYT) based on the most recent financial and operational data.
| Criterion | GLOBALFOUNDRIES Inc. (GFS) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| Diversification | Moderate: Focused mainly on Water Fabrication (6.1B USD in 2024) with smaller Engineering services segment (652M USD) | Moderate: Diverse advanced technology services and wafer services, but smaller scale (approx. 160M USD total) |
| Profitability | Unfavorable: Negative net margin (-3.93%), ROIC below WACC, value destroying but improving | Unfavorable: Negative net margin (-1.98%), ROIC below WACC, value destroying but improving |
| Innovation | Moderate: Growing ROIC suggests improving operational efficiency and potential innovation gains | Moderate: Strong ROIC growth trend indicates innovation and efficiency improvements |
| Global presence | Strong: Large scale operations with global reach in semiconductor fabrication | Smaller scale and less global exposure, more niche-focused |
| Market Share | Large: Significant revenue base in semiconductor manufacturing | Small: Niche market player with limited market share |
Key takeaways: Both companies are currently value destroyers with ROIC below WACC but show improving profitability trends. GLOBALFOUNDRIES has a larger global presence and market share, while SkyWater focuses on advanced technology services with a smaller footprint. Caution is advised given current profitability challenges.
Risk Analysis
Below is a comparative risk overview for GLOBALFOUNDRIES Inc. (GFS) and SkyWater Technology, Inc. (SKYT) based on the most recent 2024 data.
| Metric | GLOBALFOUNDRIES Inc. (GFS) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| Market Risk | Beta 1.49 (moderate volatility) | Beta 3.49 (high volatility) |
| Debt level | Debt/Equity 0.22 (low, favorable) | Debt/Equity 1.33 (high, unfavorable) |
| Regulatory Risk | Moderate (semiconductor industry regulations) | Moderate (same sector, defense exposure) |
| Operational Risk | Moderate (scale and complexity) | Elevated (smaller scale, niche manufacturing) |
| Environmental Risk | Moderate (semiconductor fabs have environmental impact) | Moderate (similar industry impact) |
| Geopolitical Risk | Elevated (global supply chain dependencies) | Elevated (defense and aerospace customers) |
The most likely and impactful risks stem from operational and geopolitical factors for both companies. SKYT’s higher beta and debt level imply greater financial and market volatility. GFS faces challenges in profitability with negative margins and returns, increasing operational risk despite lower leverage. Both companies operate in a sector sensitive to global trade tensions and supply chain disruptions.
Which Stock to Choose?
GLOBALFOUNDRIES Inc. (GFS) shows an unfavorable recent income evolution with declining revenue and profitability, reflected in a negative net margin of -3.93% and deteriorating EBIT margin. Financial ratios reveal mixed signals: favorable liquidity and low debt ratios but unfavorable returns on equity and assets. The company’s rating is moderate with a C+ grade, indicating some financial stability concerns.
SkyWater Technology, Inc. (SKYT) presents a favorable income evolution characterized by solid revenue and profit growth, though net margin remains negative at -1.98%. Its financial ratios largely remain unfavorable, including high debt-to-equity and weak liquidity, despite a favorable asset turnover. The company holds a B+ rating, suggesting a comparatively stronger financial standing.
Investors focused on growth may find SKYT’s improving income statement and higher rating suggestive of better momentum, while those prioritizing financial stability and moderate leverage might see GFS’s stronger liquidity and moderate rating as more favorable. Both companies display slightly unfavorable economic moats, indicating value destruction but improving profitability trends.
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 SkyWater Technology, Inc. to enhance your investment decisions:
