GlobalFoundries (GFS) Shelf Registration Could Be a Game Changer for Share Supply and Ownership

• On September 11, 2025, GlobalFoundries Inc. filed a shelf registration with the SEC to potentially offer up to US$444.13 million in ordinary shares, amounting to 13,948,881 shares, as part of an ESOP-related offering.
• This registration provides flexibility for employee-related equity transactions and has the potential to impact share supply in the coming periods, making it a significant development for both existing and prospective shareholders.
• We'll explore how the potential for increased share supply from this ESOP-driven filing could influence GlobalFoundries’ investment case.

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GlobalFoundries Investment Narrative Recap

To be a shareholder in GlobalFoundries, you need to believe in the long-term demand for differentiated, regional semiconductor manufacturing, especially as supply chain resiliency and government incentives support expansion into automotive, AI, and communications markets. The September 11, 2025 shelf registration tied to the ESOP may increase share supply, but it does not materially impact the most pressing catalyst, securing new multi-year customer agreements, or the immediate risks around advanced process node exposure, at this stage.

Among recent announcements, the expanded partnership with Cirrus Logic on a new Bipolar-CMOS-DMOS (BCD) process stands out. This collaboration underscores GlobalFoundries’ focus on technology differentiation, aligning directly with major growth catalysts in efficient power management and next-generation devices, while helping offset limitations in leading-edge node exposure.

By contrast, investors should remain aware of the ongoing risk posed by GlobalFoundries’ limited exposure to advanced sub-7nm process technologies, as...

Read the full narrative on GlobalFoundries (it's free!)

GlobalFoundries' outlook anticipates $8.6 billion in revenue and $1.4 billion in earnings by 2028. This projection assumes an annual revenue growth rate of 8.0% and an earnings increase of $1.515 billion from current earnings of -$115 million.

Uncover how GlobalFoundries' forecasts yield a $39.43 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community valued GlobalFoundries between US$25.20 and US$54.14, reflecting wide differences in future growth expectations. As growing demand for automotive and communications chips highlights potential, these divergent views invite you to consider a range of scenarios for the company’s long-term performance.

Explore 5 other fair value estimates on GlobalFoundries - why the stock might be worth as much as 71% more than the current price!

Build Your Own GlobalFoundries Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your GlobalFoundries research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free GlobalFoundries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GlobalFoundries' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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