Shares of GlobalFoundries advanced sharply on Friday, closing 4.7% higher at $42.91, as semiconductor stocks staged a significant rebound. The rally tracked a 5.7% surge in the PHLX Semiconductor Index, fueled by renewed investor confidence in artificial intelligence-related demand and announcements of increased capital spending from major technology firms.
Earnings and Industry Outlook in Focus
The chipmaker is scheduled to report its fourth-quarter and full-year 2025 financial results on Wednesday, February 11. Analysts will scrutinize the report for updates on pricing dynamics, wafer shipment volumes, and forward-looking commentary. According to Zacks Equity Research, the consensus estimate calls for earnings of 47 cents per share on revenue of approximately $1.8 billion.
Sentiment across the sector is being bolstered by a robust long-term forecast from the Semiconductor Industry Association (SIA), which projects global chip sales could reach $1 trillion by 2026. This outlook is supported by accelerating investments in AI data centers from large technology companies.
Broader Market Strength and Key Metrics
Friday's gains were part of a wider market advance, with the Dow Jones Industrial Average closing above 50,000 for the first time. For GlobalFoundries, specific metrics under watch include factory utilization rates, capital expenditure plans, and order trends for its key end markets, notably smartphones, which account for over 40% of its revenue.
Management has previously guided investors to focus on demand for "essential" chips and stable orders from data center and AI customers. The company's performance and guidance next week will be critical in assessing whether the recent positive momentum in chip stocks can be sustained.
