2024-06-20 23:20:48 ET
Summary
- GlobalFoundries reported their 1Q24 with better than expected net income, but the headwind from the industry slowdown continues to show up.
- GlobalFoundries reported lower smart mobile device revenue, with inventory levels increasing and weak end-demand environment.
- In my opinion, GlobalFoundries' heavy exposure to smartphones continues to underperform peer group, with little upside in the near-term.
- I share my thoughts on GlobalFoundries here, and why I think it has limited upside in 2024.
Investment Thesis
I last wrote on GlobalFoundries Inc. ( GFS ) with a neutral rating ahead of their first quarter of FY2024 earning results and outlook for the full fiscal year; I’m writing to reaffirm my less optimistic outlook on the stock after 1Q24 earning results confirmed my concern about lumpy smart mobile device-related sales weighing on the company’s financial performance....
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GlobalFoundries: Same Headwinds, Different Quarter - Hold Rating