In the fast-paced world of semiconductors, two prominent players stand out: Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS). Both companies operate within the same industry, focusing on innovative technologies that power a wide range of electronic devices. However, their strategies diverge—Texas Instruments emphasizes analog and embedded processing, while GLOBALFOUNDRIES specializes in semiconductor foundry services. As we delve deeper, I will help you determine which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Texas Instruments Incorporated Overview
Texas Instruments (TXN) is a global leader in designing and manufacturing semiconductors, particularly in the Analog and Embedded Processing segments. Founded in 1930 and based in Dallas, TX, the company provides a broad array of power management solutions and data converters, serving diverse sectors such as automotive, industrial, and personal electronics. With a strong market presence and a solid history of innovation, Texas Instruments is committed to enhancing its product offerings through continuous research and development, ensuring that it remains at the forefront of the semiconductor industry. As of now, Texas Instruments boasts a market capitalization of approximately $153B and continues to demonstrate resilience in a competitive landscape.
GLOBALFOUNDRIES Inc. Overview
GLOBALFOUNDRIES (GFS), established in 2009 and headquartered in Malta, NY, operates as a semiconductor foundry, manufacturing integrated circuits for a wide range of electronic devices. The company specializes in producing microprocessors, mobile application processors, and various semiconductor devices, catering to the growing demand for advanced technology. With a market capitalization around $20B, GLOBALFOUNDRIES aims to leverage its cutting-edge fabrication technologies to support clients in sectors like consumer electronics and telecommunications. The company is rapidly expanding its capabilities to meet the increasing global demand for semiconductors, positioning itself as a vital player in the technology space.
Key similarities and differences
Both Texas Instruments and GLOBALFOUNDRIES operate within the semiconductor industry, yet their business models differ significantly. Texas Instruments focuses on designing and selling semiconductor products, emphasizing integrated solutions for various applications. In contrast, GLOBALFOUNDRIES primarily functions as a foundry, providing manufacturing services to clients without directly competing in product design. This distinction highlights their unique roles in the semiconductor ecosystem, catering to different market needs.
Income Statement Comparison
The following table compares the most recent income statements of Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS), highlighting key financial metrics for fiscal year 2024.
| Metric | Texas Instruments (TXN) | GLOBALFOUNDRIES (GFS) |
|---|---|---|
| Market Cap | 152.8B | 19.8B |
| Revenue | 15.64B | 6.75B |
| EBITDA | 7.54B | 1.50B |
| EBIT | 5.96B | -0.064B |
| Net Income | 4.80B | -0.27B |
| EPS | 5.24 | -0.48 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In 2024, Texas Instruments displayed a stable revenue of 15.64B, although a decline from the previous year’s 17.52B, indicating a potential slowdown. Net income, however, showed resilience at 4.80B, reflecting strong operational efficiency. In contrast, GLOBALFOUNDRIES experienced a downturn, with revenue decreasing to 6.75B from 7.39B in 2023 and reporting a net loss of 0.27B, underscoring operational challenges. The stark difference in profitability and margins indicates TXN’s solid position relative to GFS’s struggles, which may warrant caution for potential investors.
Financial Ratios Comparison
In this section, I present a comparison of key financial ratios for Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS) based on the most recent available data.
| Metric | TXN | GFS |
|---|---|---|
| ROE | 28.39% | -2.46% |
| ROIC | 14.75% | -2.26% |
| P/E | 35.63 | -89.54 |
| P/B | 10.12 | 2.20 |
| Current Ratio | 4.12 | 2.11 |
| Quick Ratio | 2.88 | 1.57 |
| D/E | 0.80 | 0.22 |
| Debt-to-Assets | 38.29% | 13.81% |
| Interest Coverage | 10.76 | -1.48 |
| Asset Turnover | 0.44 | 0.40 |
| Fixed Asset Turnover | 1.38 | 0.82 |
| Payout Ratio | 99.92% | 0.00% |
| Dividend Yield | 2.80% | 0.00% |
Interpretation of Financial Ratios
The financial ratios for TXN indicate strong performance, particularly in ROE and ROIC, suggesting effective management of shareholder equity and capital. Conversely, GFS shows negative returns and profitability metrics, raising concerns about its financial health. The current ratios indicate good liquidity for both companies, but TXN’s significantly higher ratios suggest a stronger capacity to cover short-term obligations. Investors should approach GFS with caution due to its weak profitability and high debt levels.
Dividend and Shareholder Returns
Texas Instruments (TXN) consistently pays dividends, with a payout ratio of approximately 99.9% and a dividend yield of around 2.8%. However, this high payout raises concerns about sustainability, especially given the significant capital expenditures. In contrast, GLOBALFOUNDRIES (GFS) does not pay dividends due to its focus on reinvesting for growth in a high-demand market. While GFS engages in share buybacks, its lack of dividends may align with long-term value creation strategies as it seeks to enhance its market position. Ultimately, both approaches reflect distinct strategies aimed at sustained shareholder value, though TXN’s model faces potential risks regarding its dividend sustainability.
Strategic Positioning
Texas Instruments (TXN) holds a significant position in the semiconductor market, with a diverse product range across analog and embedded processing segments. Its robust market share is supported by a strong focus on innovation and efficiency, despite facing competitive pressure from foundries like GLOBALFOUNDRIES (GFS). GFS, while newer, leverages advanced semiconductor manufacturing technologies but must contend with TXN’s established presence. Both companies are under constant pressure from technological disruptions, requiring adaptive strategies to maintain their market standings.
Stock Comparison
In this analysis, I will evaluate the stock price movements and trading dynamics of Texas Instruments (TXN) and GLOBALFOUNDRIES (GFS) over the past year, highlighting key price fluctuations and overall market behavior.
Trend Analysis
Texas Instruments (TXN) Over the past year, TXN has experienced a price change of +1.92%. This indicates a bullish trend, although it is important to note that the trend has shown signs of deceleration. The stock reached a notable high of $221.25 and a low of $147.60, with a standard deviation of 16.88 reflecting moderate volatility.
In the recent period from September 14, 2025, to November 30, 2025, TXN’s stock price decreased by -7.85%, with a trend slope of -2.28, suggesting a short-term bearish movement. The recent standard deviation was 9.08, indicating lower volatility compared to the overall trend.
GLOBALFOUNDRIES (GFS) GFS has faced a significant price decline of -36.05% over the past year, categorizing it in a bearish trend with accelerating downward momentum. The stock’s price fluctuated between a high of $59.17 and a low of $31.54, while the standard deviation of 7.38 indicates relatively lower volatility.
However, in the recent timeframe from September 14, 2025, to November 30, 2025, GFS has seen a price increase of +13.17%, with a trend slope of 0.13, suggesting a potential short-term recovery. The recent standard deviation of 1.34 reflects minimal volatility.
In summary, TXN appears to be in a long-term bullish trend with some recent challenges, while GFS is navigating a significant long-term decline but shows signs of recovery in the short term.
Analyst Opinions
Recent analyst recommendations for Texas Instruments (TXN) indicate a “Buy” rating, with a strong emphasis on its solid return on equity and assets, which score 5. Analysts believe the company’s fundamentals are robust enough to warrant investment. Conversely, GLOBALFOUNDRIES (GFS) holds a “C+” rating, suggesting a “Hold” position due to weaker performance metrics, particularly in return on equity and assets. The consensus for TXN is a buy, while GFS leans towards hold, reflecting caution in its current valuation.
Stock Grades
In the current market landscape, I have analyzed the latest stock grades from recognized grading companies for two prominent firms: Texas Instruments (TXN) and GLOBALFOUNDRIES (GFS). Below are the detailed ratings.
Texas Instruments Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | maintain | Positive | 2025-10-22 |
| Wells Fargo | maintain | Equal Weight | 2025-10-22 |
| Truist Securities | maintain | Hold | 2025-10-22 |
| Rosenblatt | maintain | Buy | 2025-10-22 |
| Goldman Sachs | maintain | Buy | 2025-10-22 |
| JP Morgan | maintain | Overweight | 2025-10-22 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-22 |
| Stifel | maintain | Hold | 2025-10-22 |
| TD Cowen | maintain | Buy | 2025-10-22 |
| Mizuho | downgrade | Underperform | 2025-10-13 |
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 trend in the grades for TXN shows a consistent maintenance of ratings despite one downgrade, suggesting a stable outlook. In contrast, GFS is facing some volatility with a recent downgrade, but it still maintains a positive outlook from several analysts. Investors should weigh these insights carefully when considering these stocks for their portfolios.
Target Prices
The consensus target prices for Texas Instruments and GLOBALFOUNDRIES indicate positive outlooks from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Texas Instruments (TXN) | 245 | 145 | 190.45 |
| GLOBALFOUNDRIES (GFS) | 37 | 37 | 37 |
Texas Instruments has a consensus target of 190.45, suggesting a potential upside from its current price of 168.15. Meanwhile, GLOBALFOUNDRIES’ target aligns exactly with its current price of 35.84, reflecting a stable market sentiment.
Strengths and Weaknesses
Below is a comparative analysis of the strengths and weaknesses of Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS).
| Criterion | TXN | GFS |
|---|---|---|
| Diversification | Strong in analog and embedded processing segments | Focused primarily on foundry services |
| Profitability | High net profit margin of 37.16% | Negative net profit margin of -3.93% |
| Innovation | Significant investment in R&D for new technologies | Moderate innovation with ongoing improvements in manufacturing processes |
| Global presence | Operates worldwide with a strong market share | Growing global presence but less established than TXN |
| Market Share | Leading player in the semiconductor sector | Smaller market share in the foundry segment |
| Debt level | Moderate debt-to-equity ratio of 0.66 | Low debt-to-equity ratio of 0.25 |
In summary, Texas Instruments shows a robust financial position with high profitability and a strong market presence, while GLOBALFOUNDRIES is still establishing itself in the industry with a focus on growth and innovation. Investors should weigh these factors carefully when considering their investment options.
Risk Analysis
The table below outlines the various risks associated with Texas Instruments Incorporated (TXN) and GLOBALFOUNDRIES Inc. (GFS).
| Metric | TXN | GFS |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | Moderate | High |
In summary, GFS is exposed to higher operational and market risks compared to TXN, which has a stronger regulatory position and lower operational vulnerabilities. Recent semiconductor supply chain disruptions have exacerbated these risks, particularly for GFS.
Which one to choose?
In comparing Texas Instruments (TXN) and GLOBALFOUNDRIES (GFS), TXN demonstrates stronger financial fundamentals and profitability metrics. TXN has a net profit margin of 30.68%, high return on equity (ROE) of 38.53%, and a solid debt-to-equity ratio of 0.80, indicating effective management and a strong financial position. In contrast, GFS has struggled with profitability, showing negative net income and a lower overall rating of C+. Additionally, TXN’s stock trend appears bullish, suggesting potential for long-term appreciation, while GFS has faced a bearish trend with substantial price declines recently.
For growth-oriented investors, TXN may be the preferable choice, while those prioritizing risk management might consider the inherent volatility in GFS’s performance.
Specific risks for both companies include market dependence and competition in the semiconductor industry, which can impact revenue stability.
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 Texas Instruments Incorporated and GLOBALFOUNDRIES Inc. to enhance your investment decisions:
