In the rapidly evolving semiconductor industry, two key players, Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS), stand out for their innovative strategies and market presence. While Intel has a long-standing history and diverse product offerings, GLOBALFOUNDRIES focuses on semiconductor manufacturing services. This comparison highlights their respective strengths and market overlaps, helping investors navigate the competitive landscape. Join me as we explore which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Intel Corporation Overview
Intel Corporation (ticker: INTC) is a pivotal player in the semiconductor industry, focused on designing, manufacturing, and selling a wide array of computer products and technologies globally. Founded in 1968 and headquartered in Santa Clara, California, Intel operates through multiple segments, including Client Computing, Data Center, Internet of Things, and Mobileye. The company’s extensive product lineup features central processing units, chipsets, and high-performance compute solutions tailored for various sectors, such as cloud services and autonomous driving. With a market capitalization of approximately $152B and a beta of 1.346, Intel remains a crucial supplier for original equipment manufacturers and cloud service providers, reinforcing its position as a technology leader.
GLOBALFOUNDRIES Inc. Overview
GLOBALFOUNDRIES Inc. (ticker: GFS), established in 2009 and based in Malta, New York, operates as a semiconductor foundry, specializing in manufacturing integrated circuits essential for a multitude of electronic devices. The company offers a broad spectrum of semiconductor devices, including microprocessors and mobile application processors, while also providing wafer fabrication services. With a market capitalization of about $18.8B and a beta of 1.485, GLOBALFOUNDRIES focuses on delivering advanced manufacturing technologies and plays a key role in the global supply chain for semiconductors.
Key Similarities and Differences
Both Intel and GLOBALFOUNDRIES operate within the semiconductor industry, yet their business models diverge significantly. Intel primarily designs and manufactures its products, targeting direct sales to end-users and OEMs, while GLOBALFOUNDRIES functions as a pure foundry, providing semiconductor manufacturing services to third parties. This distinction shapes their market strategies and operational scopes, reflecting their unique contributions to the semiconductor ecosystem.
Income Statement Comparison
The following table summarizes the key income metrics for Intel Corporation and GLOBALFOUNDRIES Inc. for the most recent fiscal year, providing insights into their financial performance.
| Metric | Intel Corporation (INTC) | GLOBALFOUNDRIES Inc. (GFS) |
|---|---|---|
| Revenue | 53.1B | 6.75B |
| EBITDA | 1.20B | 1.50B |
| EBIT | -10.18B | -0.06B |
| Net Income | -18.76B | -0.27B |
| EPS | -4.38 | -0.48 |
Interpretation of Income Statement
In the most recent fiscal year, Intel Corporation experienced a decline in revenue to 53.1B from 54.2B the previous year, resulting in a significant net loss of 18.76B. In contrast, GLOBALFOUNDRIES reported a drop in revenue to 6.75B from 7.39B, but managed to improve its EBITDA margin. Both companies are grappling with negative net incomes, reflecting challenges in managing costs and operational efficiency. The overall trend indicates a need for strategic adjustments to improve profitability and stabilize their financial positions moving forward.
Financial Ratios Comparison
The following table provides a comparative analysis of the most recent financial ratios for Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS).
| Metric | INTC | GFS |
|---|---|---|
| ROE | -0.189 | -0.025 |
| ROIC | -0.122 | -0.023 |
| P/E | -4.63 | -89.54 |
| P/B | 0.88 | 2.20 |
| Current Ratio | 1.33 | 2.11 |
| Quick Ratio | 0.98 | 1.57 |
| D/E | 0.50 | 0.22 |
| Debt-to-Assets | 0.25 | 0.14 |
| Interest Coverage | -14.17 | -1.48 |
| Asset Turnover | 0.27 | 0.40 |
| Fixed Asset Turnover | 0.49 | 0.82 |
| Payout Ratio | -0.085 | 0 |
| Dividend Yield | 1.84% | 0% |
Interpretation of Financial Ratios
The financial ratios reveal significant challenges for both companies. INTC’s negative ROE and ROIC indicate poor profitability and efficiency in utilizing capital. GFS also shows negative profitability metrics and a high P/E ratio, suggesting overvaluation relative to its earnings. Both companies maintain reasonable liquidity, but high debt levels relative to their assets and negative interest coverage ratios raise concerns about their ability to manage debt obligations effectively. Caution is warranted for potential investors.
Dividend and Shareholder Returns
Intel Corporation (INTC) continues to pay dividends, currently yielding 1.84% with a payout ratio of approximately 1.83. However, the negative net income raises concerns about sustainability. Share buybacks are also in place, which may be beneficial if executed prudently. Conversely, GLOBALFOUNDRIES Inc. (GFS) does not pay dividends, focusing instead on reinvestment strategies during its growth phase, with share buybacks to enhance shareholder value. This approach may align with long-term value creation, but the absence of dividends can deter income-focused investors.
Strategic Positioning
Intel Corporation (INTC) holds a significant market share in the semiconductor sector, leveraging its extensive product range and established reputation. With a market cap of $151.7B, it faces competitive pressure from GLOBALFOUNDRIES Inc. (GFS), which, despite a smaller market cap of $18.8B, has been gaining traction in the foundry space. Both companies are navigating technological disruptions and must innovate continuously to maintain their positions. As industry dynamics evolve, strategic partnerships and advancements in AI and manufacturing processes will be critical for sustained growth.
Stock Comparison
In this analysis, I will evaluate the weekly stock price movements of Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) over the past year, highlighting key price dynamics and trading patterns.
Trend Analysis
For Intel Corporation (INTC), the stock has experienced a significant decline of -31.34% over the past year. This bearish trend is characterized by an acceleration, with notable price fluctuations as it reached a high of 50.25 and a low of 18.89. The standard deviation of 8.72 indicates a considerable level of volatility in its price movements.
In the recent period from September 7, 2025, to November 23, 2025, INTC has shown a positive price change of 40.87%, suggesting a short-term rally amid its overall downtrend. However, the trend slope of 1.05 indicates a strong upward movement during this timeframe, coupled with a standard deviation of 5.06, which also reflects volatility.
Conversely, GLOBALFOUNDRIES Inc. (GFS) has seen a more drastic decline of -43.91% over the past year, also indicating a bearish trend with acceleration. The stock’s price ranged from a high of 60.6 to a low of 31.54, and the standard deviation of 7.56 points to significant volatility.
In the recent analysis period from September 7, 2025, to November 23, 2025, GFS has registered a modest positive change of 2.1%, placing it within a neutral trend range. The trend slope of 0.1 and lower standard deviation of 1.28 suggest a period of relative stability compared to its overall performance.
In summary, while INTC shows promising short-term recovery, both companies face challenging long-term trajectories marked by significant declines and volatility. Careful consideration of these trends is essential for informed investment decisions.
Analyst Opinions
Recent analyst recommendations for Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) have both landed at a rating of C+. Analysts suggest a cautious approach, with many advising a hold rather than a buy or sell. For INTC, the overall score reflects moderate strengths in return on assets and price-to-book value, while GFS shows similar metrics. Analysts emphasize the need for improved fundamentals in both companies before making significant investment moves. The consensus for 2025 leans towards a hold, indicating a wait-and-see strategy for investors.
Stock Grades
In this section, I present the latest stock grades for Intel Corporation and GLOBALFOUNDRIES Inc., reflecting the insights from reputable grading companies.
Intel Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Tigress Financial | maintain | Buy | 2025-11-04 |
| Barclays | maintain | Equal Weight | 2025-10-27 |
| Mizuho | maintain | Neutral | 2025-10-24 |
| Wedbush | maintain | Neutral | 2025-10-24 |
| Wells Fargo | maintain | Equal Weight | 2025-10-24 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-24 |
| Morgan Stanley | maintain | Equal Weight | 2025-10-24 |
| Truist Securities | maintain | Hold | 2025-10-24 |
| Rosenblatt | maintain | Sell | 2025-10-24 |
| JP Morgan | maintain | Underweight | 2025-10-24 |
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 companies exhibit a trend of maintaining their grades, with Intel showing a mix of holds and sells, while GLOBALFOUNDRIES maintains a stronger outlook with multiple outperform ratings, notwithstanding the recent downgrade from B of A Securities.
Target Prices
The target price consensus indicates a positive outlook for both companies analyzed.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Intel Corporation (INTC) | 52 | 20 | 35.22 |
| GLOBALFOUNDRIES Inc. (GFS) | 37 | 37 | 37 |
For Intel, the target consensus of 35.22 suggests moderate growth potential compared to its current price of 34.5. GLOBALFOUNDRIES shows a strong consensus of 37, slightly above its current price of 33.99, indicating bullish sentiment among analysts.
Strengths and Weaknesses
This table outlines the strengths and weaknesses of Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) based on the most recent data available.
| Criterion | Intel Corporation (INTC) | GLOBALFOUNDRIES Inc. (GFS) |
|---|---|---|
| Diversification | Strong product portfolio across multiple segments | Focused on semiconductor foundry services |
| Profitability | Negative net profit margin (-35.32%) | Positive net profit margin (13.80%) |
| Innovation | Significant investments in AI and autonomous driving | Rapid advancements in microprocessors and mobile applications |
| Global presence | Extensive global reach with various partnerships | Global operations with a focus on the U.S. and Europe |
| Market Share | Holds a significant share in the semiconductor market | Smaller market share but growing in foundry services |
| Debt level | Moderate debt-to-equity ratio (0.47) | Low debt-to-equity ratio (0.25) |
Key takeaways indicate that while Intel struggles with profitability and higher debt, it boasts a strong diversification strategy and significant innovation efforts. In contrast, GLOBALFOUNDRIES shows better profitability and lower debt, but lacks the same level of diversification in its offerings.
Risk Analysis
In this section, I present a comparative analysis of the key risks associated with Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS).
| Metric | INTC | GFS |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | High | Moderate |
| Operational Risk | High | Moderate |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
Both companies face significant market and operational risks, primarily due to the volatile nature of the semiconductor industry. Recent geopolitical tensions and regulatory changes could further exacerbate these risks, particularly for Intel, which has a broader global footprint.
Which one to choose?
When comparing Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS), both companies hold a C+ rating, indicating similar overall performance. Intel has demonstrated a revenue of $53.1B for 2024 but continues to struggle with profitability, reporting a net loss of $18.8B. Its current ratio of 1.33 suggests reasonable liquidity despite a bearish stock trend with a substantial price drop of 31.34% over the past year.
Conversely, GLOBALFOUNDRIES reported $6.75B in revenue for 2024, with a net loss of $0.26B, and a stronger current ratio of 2.11. However, its stock has seen a greater decline of 43.91% in the same timeframe.
For growth-focused investors, I would lean towards Intel due to its larger market share and potential for recovery. Conversely, those prioritizing stability may find GLOBALFOUNDRIES appealing due to its better liquidity metrics.
Risks: Both companies face intense competition and market dependence that could impact their valuations.
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 Intel Corporation and GLOBALFOUNDRIES Inc. to enhance your investment decisions:
