GFS Down 16% In A Month. How Confident Are You In The Stock?

August 27th, 2025 by Trefis Team
GFS: GLOBALFOUNDRIES logo
GFS
GLOBALFOUNDRIES

GLOBALFOUNDRIES (GFS) stock is down 15.8% in 21 trading days. While history suggests price dips recover, there is risk – specific to growth, profitability and downturn resilience. Consider the following data:

  • Size: A $19 Bil company with $6.8 Bil in revenue currently trading at $33.97.
  • Fundamentals: Last 12 month revenue growth of -0.7% and operating margin of 11.2%.
  • Liquidity: Has Debt to Equity ratio of 0.1 and Cash to Assets ratio of 0.2
  • Valuation: Currently trading at P/E multiple of -163.9 and P/EBIT multiple of -785.6
  • Has returned (median) 32.6% within a year following sharp dips since 2010. See GFS Dip Buy Analysis.

While we like to buy dips if the fundamentals check out – for GFS, see Buy or Sell GFS Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and GFS drops another 20-30% to $23.78 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.

Below is a deep dive into GLOBALFOUNDRIES (GFS) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

Below are the details, but before that, as a quick background: GFS provides manufacturing of integrated circuits and semiconductor devices, including microprocessors, mobile and network processors, RF modems, microcontrollers, power management units, and microelectromechanical systems.

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2022 Inflation Shock

  • GFS stock fell 50.8% from a high of $78.94 on 25 March 2022 to $38.81 on 1 July 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
  • The stock is yet to recover to its pre-Crisis high
  • The highest the stock has reached since then is $72.18 on 2 April 2023 , and currently trades at $33.97

  GFS S&P 500
% Change from Pre-Recession Peak -50.8% -25.4%
Time to Full Recovery Not Fully Recovered days 464 days

 
Worried that GFS could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.