2024-03-28 12:31:36 ET
Summary
- GLOBALFOUNDRIES reported FY23 revenue and outlook, reflecting what I believe is a continued headwind from the industry inventory correction cycle.
- GLOBALFOUNDRIES achieves ~41% of its revenues from its smart mobile devices sales, and I don't see end demand in the smartphone market rebounding in 1H24.
- The stock has underperformed the S&P 500 index by 56% in the past year pricing in most of the negatives.
- I share my thoughts on GLOBALFOUNDRIES here, and why I think it has limited upside in 2024.
Investment Thesis
GLOBALFOUNDRIES ( GFS ) is set to announce earnings in mid-May; the chip-maker used to be high on my watchlist but fell out of favor for me late last year due to its heavy exposure to the smartphone market, competition against TSMC ( TSM ), and its immaterial AI exposure....
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GLOBALFOUNDRIES - Mixed Outlook But Limited Downside, Initiating With A Hold