Globalfoundries Inc (GFS · NASDAQ)

GlobalFoundries shares have fallen 17.0% over the past three months to $48.24, leaving the stock 46.2% below its 52-week high despite a recent bounce on news of a five-year, $2 billion agreement to supply silicon interposers to TSMC for advanced AI chip packaging. The company has beaten earnings estimates in all of its last four quarters, most recently reporting $0.33 versus $0.32 expected, though earnings are down 26.8% year over year while revenue grew 5.8% to $6.94B TTM. Free cash flow was roughly breakeven at negative $6.0M last quarter as capex of $411.0M slightly exceeded operating cash flow of $405.0M, against a modest debt load of $1.68B (0.8x EBITDA). The stock trades at 37.69x earnings with an analyst target of $74.68, and Evercore ISI recently reiterated a Buy rating with an $85 price target.