In the rapidly evolving semiconductor industry, two prominent players stand out: Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS). Both companies are pivotal in the tech landscape, focusing on innovation and manufacturing of semiconductor products. While Intel has a long-standing reputation for designing and selling a wide array of computer technologies, GLOBALFOUNDRIES specializes as a semiconductor foundry, offering diverse fabrication services. In this article, I will analyze both companies to identify which one presents the more compelling investment opportunity for you.
Table of contents
Company Overview
Intel Corporation Overview
Intel Corporation (NASDAQ: INTC) has established itself as a leader in the semiconductor industry, focusing on the design, manufacture, and sale of a diverse range of computer products and technologies. With a market capitalization of approximately $178.4B, Intel operates multiple segments including Client Computing, Data Center, Internet of Things, and Mobileye, among others. The company is known for its innovation in CPUs, chipsets, and high-performance computing solutions tailored for various industries like healthcare and autonomous driving. Founded in 1968 and headquartered in Santa Clara, California, Intel remains a major player in the technology sector, driving advancements in artificial intelligence alongside strategic partners.
GLOBALFOUNDRIES Inc. Overview
GLOBALFOUNDRIES Inc. (NASDAQ: GFS), founded in 2009 and based in Malta, New York, operates as a global semiconductor foundry, manufacturing integrated circuits that are vital for numerous electronic devices. With a market capitalization around $19.8B, the company specializes in a broad array of semiconductor devices including microprocessors and mobile application processors. Unlike traditional semiconductor firms, GLOBALFOUNDRIES focuses on wafer fabrication services, providing essential manufacturing capabilities for other tech companies. The firm has carved out a niche in the competitive semiconductor landscape, emphasizing flexibility and innovation in its production processes.
Key similarities and differences
Both Intel and GLOBALFOUNDRIES operate within the semiconductor industry and emphasize innovation and technology. However, their business models differ; Intel designs and manufactures its own products while GLOBALFOUNDRIES primarily serves as a foundry, producing chips for other companies. This distinction highlights Intel’s integrated approach versus GLOBALFOUNDRIES’ focus on fabrication services.
Income Statement Comparison
The following table provides a comparative overview of the income statements for Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) for their most recent fiscal years.
| Metric | Intel Corporation (INTC) | GLOBALFOUNDRIES Inc. (GFS) |
|---|---|---|
| Market Cap | 178.38B | 19.85B |
| Revenue | 53.10B | 6.75B |
| EBITDA | 1.20B | 1.50B |
| EBIT | -10.18B | -0.06B |
| Net Income | -18.76B | -0.27B |
| EPS | -4.38 | -0.48 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, Intel reported a substantial decline in revenue to 53.10B, reflecting ongoing challenges in the semiconductor market. Despite a slight improvement in EBITDA to 1.20B, their net income remained deeply negative at -18.76B, indicating significant operational difficulties. Conversely, GLOBALFOUNDRIES experienced a decline in revenue to 6.75B but managed to maintain a smaller loss, reflecting a more stable performance in margins. Overall, both companies face headwinds, but GFS appears more resilient in its operational efficiency, while INTC’s struggles highlight ongoing strategic challenges.
Financial Ratios Comparison
In this section, I will present a comparative overview of the financial ratios for Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) based on the most recent data.
| Metric | Intel Corporation (INTC) | GLOBALFOUNDRIES Inc. (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 indicate significant challenges for both companies. Intel displays negative returns on equity (ROE) and investment capital (ROIC), suggesting operational inefficiencies. Meanwhile, GLOBALFOUNDRIES also shows negative profitability metrics and a higher price-to-earnings ratio, indicating investor skepticism. While GFS has a stronger current ratio, both companies face liquidity and profitability concerns that investors should monitor closely.
Dividend and Shareholder Returns
Intel Corporation (INTC) continues to pay dividends, with a dividend yield of approximately 1.84% and a payout ratio of around -8.53%, indicating potential sustainability concerns given its current negative net income. The company also engages in share buybacks, which could affect long-term value. Conversely, GLOBALFOUNDRIES Inc. (GFS) does not pay dividends, focusing instead on reinvesting in growth and innovation, aligning with its high-growth trajectory. The absence of dividends paired with share repurchases suggests a strategy aimed at long-term shareholder value creation, but it also carries risks if growth does not materialize as expected.
Strategic Positioning
Intel Corporation (INTC) commands a substantial market share in the semiconductor sector, leveraging its extensive portfolio of CPU and chipset products. However, it faces competitive pressure from GLOBALFOUNDRIES Inc. (GFS), which has been gaining traction in the foundry space. Both companies are navigating technological disruptions, with Intel focusing on advanced process technologies, while GLOBALFOUNDRIES emphasizes its manufacturing capabilities. As the market evolves, sustained innovation and strategic partnerships will be crucial for maintaining a competitive edge.
Stock Comparison
In analyzing the stock performance of Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) over the past year, we observe notable price movements and trading dynamics that reveal the underlying trends affecting these companies.
Trend Analysis
For Intel Corporation (INTC), the overall price change over the past year is -13.5%, indicating a bearish trend. The stock has shown acceleration in this downtrend, with a standard deviation of 8.53, highlighting significant volatility. The highest price reached was 48.15, while the lowest dipped to 18.89.
In contrast, GLOBALFOUNDRIES Inc. (GFS) experienced a more pronounced decline, with an overall price change of -36.05%, also reflecting a bearish trend. This trend has been accelerating as well, with a standard deviation of 7.38. The stock peaked at 59.17 and bottomed out at 31.54.
Looking at recent performance, INTC has seen a substantial rebound of +68.44% between September 14, 2025, and November 30, 2025. This indicates a strong bullish recovery, though it is crucial to note the preceding decline. GFS, on the other hand, has increased by 13.17% in the same timeframe, suggesting a cautious recovery but still remaining in a bearish overall context.
Both companies exhibit increased trading volumes, indicating growing investor interest, yet the overarching bearish trends demand careful risk management as we approach investment decisions.
Analyst Opinions
Recent analyst opinions on Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) suggest a cautious approach, with both companies receiving a “C+” rating. Analysts highlight Intel’s struggle with return on equity and price-to-earnings metrics as concerns. Similarly, GLOBALFOUNDRIES faces challenges in return on equity and assets. Both companies are currently viewed as holds, indicating that investors should monitor their performance closely rather than make aggressive moves. The consensus for the current year leans towards holding rather than buying or selling.
Stock Grades
In this section, I will present the latest stock grades for Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) based on reliable 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 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-24 |
| Rosenblatt | Maintain | Sell | 2025-10-24 |
| Truist Securities | Maintain | Hold | 2025-10-24 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-24 |
| Wedbush | Maintain | Neutral | 2025-10-24 |
| JP Morgan | Maintain | Underweight | 2025-10-24 |
| TD Cowen | Maintain | Hold | 2025-10-24 |
| Needham | Maintain | Hold | 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, the grades for both companies show a tendency to maintain current positions, with a mix of “Buy,” “Hold,” and “Sell” ratings for Intel, while GLOBALFOUNDRIES exhibits a stronger outlook with multiple “Outperform” ratings despite a recent downgrade. This suggests a cautious stance among analysts for both stocks, with some potential for growth in the semiconductor sector.
Target Prices
The latest target price consensus indicates optimistic expectations for both Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Intel Corporation | 52 | 20 | 35.22 |
| GLOBALFOUNDRIES Inc. | 37 | 37 | 37 |
For Intel Corporation, the consensus target price of 35.22 is slightly below its current price of 40.56, suggesting that analysts expect some correction. Meanwhile, GLOBALFOUNDRIES has a stable target price of 37, indicating solid confidence in its current valuation of 35.84.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS) based on the most recent data.
| Criterion | Intel Corporation (INTC) | GLOBALFOUNDRIES Inc. (GFS) |
|---|---|---|
| Diversification | Strong across segments | Limited to foundry services |
| Profitability | Negative margins | Positive margins |
| Innovation | Ongoing R&D investments | Focus on advanced processes |
| Global presence | Extensive | Growing |
| Market Share | 14% in semiconductors | 8% in foundry services |
| Debt level | Moderate (debt-to-equity: 0.47) | Low (debt-to-equity: 0.25) |
Key takeaways indicate that while Intel has a more diversified portfolio and a larger market share, it currently faces profitability challenges. In contrast, GLOBALFOUNDRIES shows positive margins and lower debt levels, suggesting a potentially lower risk but with less market presence.
Risk Analysis
In this section, I present a comparative risk analysis for Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS).
| Metric | INTC | GFS |
|---|---|---|
| Market Risk | High | Medium |
| Regulatory Risk | Medium | Medium |
| Operational Risk | High | Medium |
| Environmental Risk | Low | Medium |
| Geopolitical Risk | Medium | High |
Both companies face significant market and operational risks, primarily due to the volatile semiconductor industry. Geopolitical tensions, especially related to technology trade, can also impact their performance. Intel’s recent struggles with supply chain issues highlight this concern, while GLOBALFOUNDRIES has been affected by increasing competition.
Which one to choose?
When comparing Intel Corporation (INTC) and GLOBALFOUNDRIES Inc. (GFS), both companies have shown mixed performance. Intel has a market cap of 86.88B with a C+ rating, reflecting significant challenges in profitability, as it reported a net loss of 18.76B for 2024. In contrast, GLOBALFOUNDRIES has a market cap of 23.73B, also rated C+, but it achieved a net income of 1B in 2023, demonstrating better recent performance.
Both companies are facing bearish trends, with Intel experiencing a price decline of 13.5% and GLOBALFOUNDRIES down by 36.05% over the past year. Analysts suggest that Intel’s turnaround potential makes it more appealing for growth-focused investors, while those prioritizing short-term performance might favor GLOBALFOUNDRIES due to its recent profitability.
Recommendation: Growth-oriented investors may prefer Intel, while those focused on recent stability might find GLOBALFOUNDRIES more attractive.
Specific risks include market dependence and fierce competition in the semiconductor industry.
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:
