Core Viewpoint - Semiconductor manufacturer GlobalFoundries (GFS.US) saw a pre-market increase of nearly 6%, reaching $44.4, following its fourth-quarter earnings report which exceeded analyst expectations [1] Financial Performance - For the fourth quarter of last year, the company reported revenue of $1.83 billion, slightly above the analyst forecast of $1.8 billion [1] - The adjusted earnings per share (EPS) were $0.55, surpassing the analyst expectation of $0.47 [1] Future Outlook - For the first quarter of this year, the company expects revenue to be between $1.6 billion and $1.65 billion, with adjusted EPS projected between $0.30 and $0.40 [1] - Analysts had anticipated revenue of $1.61 billion and an adjusted EPS of $0.35 [1] Shareholder Returns - The company's board approved a stock buyback plan of up to $500 million [1]

Fourth Quarter and Full-Year 2025 Financial Results (unaudited) February 11, 2026 1 Disclaimer - Forward-looking statements and Third-Party Data This presentation and the accompanying oral presentation also contain estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry and business. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not i ...

Core Viewpoint - GlobalFoundries has forecasted first-quarter revenue that exceeds Wall Street expectations, driven by strong demand for its chips, and has announced a $500 million share buyback program, positively impacting its stock price [1] Group 1: Financial Performance - The company anticipates first-quarter revenue to surpass analyst expectations, indicating robust demand for its semiconductor products [1] - The announcement of a $500 million share buyback program is expected to enhance shareholder value and reflects confidence in the company's financial health [1] Group 2: Market Demand - Strong demand for chips is a key factor contributing to the positive revenue forecast, suggesting a favorable market environment for GlobalFoundries [1]

Core Insights - GLOBALFOUNDRIES Inc. (GF) reported strong preliminary financial results for Q4 and FY2025, with revenue, gross margin, operating margin, and earnings per share exceeding guidance expectations [4][6][15] Key Fourth Quarter Financial Highlights - Q4 2025 revenue reached $1.830 billion, with a gross margin of 27.8% and a Non-IFRS gross margin of 29.0% - Operating margin was 13.9%, while Non-IFRS operating margin stood at 18.3% - Net income for Q4 was $200 million, with Non-IFRS net income at $310 million - Diluted earnings per share (EPS) was $0.36, and Non-IFRS diluted EPS was $0.55 [6][11][12] Key Full Year 2025 Financial Highlights - Total revenue for FY2025 was $6.791 billion, reflecting a 1% increase from FY2024 - Gross profit for the year was $1.690 billion, with a gross margin of 24.9% and a Non-IFRS gross margin of 26.1% - Operating profit was $797 million, a significant improvement from a loss in FY2024, resulting in an operating margin of 11.7% - Net income for the year was $888 million, compared to a loss in the previous year, with a diluted EPS of $1.59 [15][16] Recent Business Highlights - GF announced a share repurchase authorization of up to $500 million, allowing for discretionary stock buybacks over the next 12 months [4] - The company entered into an agreement to acquire Synopsys' ARC Processor IP Solutions business, enhancing its capabilities in physical AI applications [7] - GF also acquired Advanced Micro Foundry and Infinilink, strengthening its position in silicon photonics and high-speed connectivity chips [12][8]

Core Insights - Silicon photonics technology is transforming data centers, with significant changes expected in the future [1] - The market for optical devices is projected to grow significantly, driven by advancements in artificial intelligence networks [3][25] - The transition from copper cables to fiber optics is underway, with major companies like Corning and Meta making substantial investments [7][12] Market Growth - The optical device market has grown from several billion dollars in 2003 to approximately $13 billion in 2023, with expectations to reach $25 billion by 2030 [3] - CignalAI forecasts the market will reach $31 billion by 2029, indicating robust growth in the sector [3] - Coherent's investor report predicts the pluggable optical device market will grow from $6 billion in 2023 to $25 billion by 2030 [12] Technology Advancements - Silicon photonics integrates previously disparate photonic devices into improved CMOS processes, enhancing data transmission capabilities [6] - The use of single-mode fiber (SMF) is prevalent in optical communications, with various wavelength bands utilized for low signal loss [9][11] - Coherent and Lumentum are key players in the optical circuit switch (OCS) technology market, with potential market sizes being revised upwards due to increasing customer interest [15] Industry Dynamics - Companies like Nvidia and Broadcom are set to launch Ethernet switches using co-packaged optical devices (CPO) to reduce power consumption [16] - The shift towards CPO is driven by its energy efficiency, which is one-third of that of pluggable devices, making it significant for large-scale applications [18][25] - TSMC is positioned to become a leading silicon photonics foundry, with projected revenues from silicon photonics expected to exceed $1 billion by the end of the decade [21][26] Competitive Landscape - GlobalFoundries has claimed the top position in silicon photonics foundry services, with a focus on long-haul coherent applications [21] - Tower Semiconductor is also a significant player, offering an open platform for silicon photonics that caters to a growing market [23][24] - The silicon photonics industry is expected to see rapid growth, with projections indicating an eightfold increase in foundry revenues from 2026 to 2032 [25]

Core Insights - The global semiconductor industry is facing significant challenges, with several major wafer fabs halting operations, delaying construction, or closing production lines, leading to a substantial impact on the entire sector [1] Group 1: GlobalFoundries and STMicroelectronics - The joint wafer fab project between GlobalFoundries and STMicroelectronics in Crolles, France, has been stalled after 18 months of slow progress, with a total investment of €7.5 billion expected from the European Chips Act [2] - The new 12-inch semiconductor wafer fab was initially planned to be fully operational by 2026, with an annual capacity of 620,000 wafers [2] Group 2: Sumitomo Electric - Sumitomo Electric has decided to cancel its new silicon carbide (SiC) wafer fab project due to weak demand in the electric vehicle market and uncertainty regarding the recovery timeline, which was announced in 2023 with an investment plan of ¥30 billion [3] - The project aimed to produce 180,000 SiC wafers annually by 2027, but this plan has been completely scrapped [3] - Industry insiders suggest that Sumitomo Electric may redirect resources to other growth areas, such as automotive wiring harnesses and optical components for data centers, to offset losses in the SiC wafer business [3] Group 3: Wolfspeed - Wolfspeed announced plans to close its 6-inch SiC wafer fab in Durham, North Carolina, due to higher manufacturing costs compared to its 8-inch fab in Mohawk Valley, with the CEO indicating an evaluation of the closure timeline [4] - The construction of a 200mm SiC wafer fab in Ernsdorf, Germany, has been postponed from summer 2024 to 2025 [4] Group 4: Intel - Intel has delayed the construction of its Fab 29.1 and Fab 29.2 facilities near Magdeburg, Germany, due to pending EU subsidy approvals and the need to clear and reuse topsoil, with the start date pushed from summer 2024 to May 2025 [5] - The advanced manufacturing facilities using Intel's 14A (1.4nm) and 10A (1nm) processes, originally expected to begin operations by the end of 2027, are now estimated to start production between 2029 and 2030 [5] - Intel's chip project in Ohio, announced in January 2022 with an initial investment of over $20 billion, has also faced delays, with construction now pushed to 2026-2027 and expected operations starting in 2027-2028 due to weak market demand and delayed government subsidies [6]

Core Viewpoint - The global semiconductor industry is facing significant challenges, with several well-known wafer fabs halting operations, delaying construction, or closing production lines, leading to a major impact on the entire industry [2]. Group 1: GlobalFoundries and STMicroelectronics - The joint wafer fab project between GlobalFoundries and STMicroelectronics in Crolles, France, has been halted after 18 months of slow progress. The project, initially planned with a total investment of €7.5 billion, aimed for full production by 2026 with an annual capacity of 620,000 wafers [3]. Group 2: Sumitomo Electric - Sumitomo Electric has decided to cancel its new silicon carbide (SiC) wafer fab project due to weak demand in the electric vehicle market and uncertainty regarding the recovery timeline. The project, announced in 2023 with an investment of ¥30 billion, was expected to start production in 2027 [4]. - The company plans to redirect resources to other growth areas, such as automotive wiring harnesses, environmentally friendly power cables, and optical components for data centers, to offset losses from the SiC wafer business [4]. Group 3: Wolfspeed - Wolfspeed announced the closure of its 6-inch SiC wafer fab in Durham, North Carolina, due to higher manufacturing costs compared to its 8-inch fab in Mohawk Valley. The timeline for this closure is currently under evaluation [5]. - Additionally, the construction of a 200mm SiC wafer fab in Ernsdorf, Germany, has been postponed from summer 2024 to 2025 [5]. Group 4: Intel - Intel has delayed the construction of its Fab 29.1 and Fab 29.2 facilities near Magdeburg, Germany, due to pending EU subsidy approvals and the need to clear and reuse topsoil. The projects, originally set to start in summer 2024, are now pushed to May 2025 [6]. - The start of production at Intel's advanced fabs using 14A (1.4nm) and 10A (1nm) processes, initially planned for late 2027, is now estimated to begin between 2029 and 2030 [6]. - Intel's chip project in Ohio, announced in January 2022 with an initial investment of over $20 billion, has also faced delays, with construction now pushed to 2026-2027 and production expected to start in 2027-2028 [6].

Core Viewpoint - The article discusses the strategic importance of rare earths in the context of the AI industry and the U.S. government's efforts to reduce dependence on China, which dominates the processing market [1][6][23]. Group 1: Market Reactions and Stock Movements - The announcement from the U.S. government led to a significant increase in stock prices, particularly for USAR, which rose from approximately $10 to nearly $30 within weeks [3][4]. - The market's reaction to government involvement often leads to rapid stock repricing, with some investors chasing momentum while others assess the implications of government actions [2][5]. Group 2: Investment Opportunities - Lango identifies three companies as potential beneficiaries of government support in strategic sectors: GlobalFoundries, Oklo, and Energy Fuels [9][10][15][19]. - GlobalFoundries is highlighted for its role in chip manufacturing, particularly in semiconductors that are critical for industrial and defense applications [12]. - Oklo is positioned as a candidate in the nuclear sector, benefiting from government prioritization of energy and its connections within the AI ecosystem [15][16]. - Energy Fuels is noted for its existing processing infrastructure, which is crucial for meeting domestic demand for rare earths and uranium [19][20]. Group 3: Strategic Insights - The shift from a monopoly to a duopoly in the rare earth market is seen as a positive development, as it suggests a larger domestic industry supported by government initiatives [6][7]. - The focus for investors should be on long-term expectations and the potential for government backing to accelerate timelines and reduce operational risks [8][22]. - The article emphasizes the importance of tracking actual changes in funding, contracts, and project milestones rather than reacting solely to headlines [24].

Group 1: Market Reaction - The prices of gold and silver experienced significant declines, with gold dropping over 12% to a low of $4682 per ounce, marking the largest single-day drop in 40 years, and closing down 9.25% at $4880 per ounce [2] - Silver saw an unprecedented drop of over 36%, reaching a low of $74.28 per ounce, and closing down 26.42% at $85.259 per ounce [2] - The U.S. stock market indices collectively fell, with the Dow Jones down 0.36%, S&P 500 down 0.43%, and Nasdaq down 0.94%, reflecting increased market concerns [3] Group 2: Influencing Factors - The sell-off in gold and silver was triggered by a rebound in the U.S. dollar, following reports of President Trump's nomination of Kevin Warsh as the new Federal Reserve Chairman, which was later confirmed [2][4] - Standard Chartered's global head of commodity research noted that the market was already due for a correction, and the announcement of the Fed Chair nominee, along with broader macroeconomic factors, acted as catalysts for profit-taking [2] - The U.S. dollar index saw a significant increase, marking its largest single-day rise since July of the previous year, which negatively impacted investor confidence in gold and silver [2] Group 3: Sector Performance - The gold sector faced substantial losses, with major companies like Newmont down 11.52%, Barrick Gold down 12.09%, and AngloGold down 13.28% [3] - The technology sector also experienced declines, with major tech stocks like Meta and TSMC dropping nearly 3%, while Amazon fell by 1% [3] - Chinese concept stocks saw a downturn, with the Nasdaq Golden Dragon China Index closing down 2.36%, and individual stocks like Bilibili and Li Auto dropping over 3% [3]

Group 1 - GlobalFoundries Inc. has seen a rise in stock interest, with Citi raising its price target from $35 to $42 while maintaining a Neutral rating [1] - The company has executed a definitive agreement to acquire Synopsys Inc.'s ARC Processor IP Solutions business, which includes engineering and design teams, aimed at enhancing its capabilities in custom silicon solutions [2][3] - The acquisition will integrate various product lines and tools into GlobalFoundries' existing MIPS offerings, focusing on providing a processor IP suite tailored for physical AI, thereby improving customer engagement and time-to-market [3] Group 2 - GlobalFoundries operates as a semiconductor foundry, offering a range of wafer fabrication services and technologies globally [4]