NVE Corp (NVEC) and GlobalFoundries (GFS), complement each other for investors seeking exposure to the spintronics market.

 

here’s a simplified dual-company investment/business report on NVE Corp (NVEC) and GlobalFoundries (GFS), with emphasis on how they complement each other for retail investors seeking exposure to the spintronics market.

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📊 Investment/Business Report: NVEC + GFS

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🧲 NVE Corporation (NASDAQ: NVEC)

Snapshot

• Market Cap: ~$250–300M (microcap)

• Focus: Pure-play spintronics — magnetic sensors (GMR/TMR) and digital isolators (IsoLoop®).

• Dividend: ~$1.00/share quarterly (~6% yield).

Technology & Advances

• Sensors: Giant/tunnel magnetoresistance (GMR/TMR) sensors for position, current, and rotation sensing.

• Digital isolators: Patented spintronic isolators with low EMI, high speed, and radiation resistance.

• MRAM IP: Early co-developer of MRAM; licenses IP, but does not mass-produce.

• Recent R&D: High-reliability isolator series (IL7xxH) targeting space/aerospace designs.

Financials

• FY2025 Revenue: ~$25.9M (down 13% YoY)

• Net Income: ~$15M (margin ~58%)

• Balance sheet: No debt, strong cash, high dividends.

Market & Clients 

• End markets: Aerospace/defense, industrial automation, medical electronics.

• Customer base: Primarily OEMs via distributors; often undisclosed due to defense/medical use.

Competitive Position

• Moat: Specialized spintronics IP, radiation-hard reliability, and consistent profitability.

• Competitors: Allegro, Infineon, TDK (TMR sensors); Analog Devices, Silicon Labs (digital isolators).

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🏭 GlobalFoundries (NASDAQ: GFS)

Snapshot

• Market Cap: ~$35–40B (large-cap)

• Focus: Specialty semiconductor foundry with emphasis on automotive, IoT, RF, and embedded memories.

• Dividend: None; reinvests in fabs and partnerships.

Technology & Advances

• eMRAM (embedded MRAM):

  • 22FDX eMRAM already in volume production.

  • Partnered with Everspin for MRAM commercialization.

  • Supplying NXP automotive MCUs with eMRAM at 16 nm (sampling 2025).

• Foundry role: Provides IP/processes enabling MRAM in automotive-grade, low-power chips.

• CHIPS Act support: Benefits from U.S. and EU funding for domestic fabs.

Financials

• Revenue (2024): ~$7B

• Profitability: Thin margins, cyclical, but EV/EBITDA (~7.5x) suggests undervaluation vs. peers.

• Customer base: Broad — NXP, Qualcomm, AMD (legacy), aerospace/defense contracts with U.S. DoD.

Competitive Position

• Moat:

  • Specialty focus (not cutting-edge like TSMC, but tuned for auto/IoT).

  • Long-term contracts with automotive, defense, and government customers.

  • Scale and fabs give them first access to integrate new spintronic materials.

• Competitors: TSMC, Samsung Foundry, Intel Foundry Services.

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🔗 Why NVEC + GFS Together?

Attribute	NVE (NVEC)	GlobalFoundries (GFS)	How They Complement
Scale	Tiny, niche	Large-cap, global	Provides both niche precision and mass infrastructure
Focus	Spintronics IP, sensors, isolators	Embedded MRAM in automotive/IoT	Covers both component-level devices and manufacturing platforms
Exposure	Direct to spintronics fundamentals	Indirect but crucial enabler	Dual exposure: boutique physics + scalable foundry
Financials	Profitable, high dividend	Growth reinvestment, undervalued multiples	Income (NVEC) + growth/infrastructure (GFS)
Market Reach	Defense, aerospace, medical niches	Automotive, IoT, global foundry markets	Balanced coverage of high-reliability + mass-market applications

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📈 Investor Takeaways

• NVEC:

  • Best for retail investors wanting direct spintronics exposure, with income stability (6% dividend yield).

  • Niche focus makes it volatile but differentiated.

• GFS:

  • Best for exposure to spintronics at scale (eMRAM in auto/IoT chips), backed by government support.

  • A strategic, lower-risk play on spintronics integration into mainstream semis.

Combined Strategy

• Why own both?

  • NVEC = “pure physics boutique” → dividend income + niche exposure.

  • GFS = “infrastructure backbone” → large-cap stability + scaling of MRAM into auto/IoT.

  • Together, they give retail investors broad yet complementary exposure to spintronics’ present (NVEC) and future (GFS).

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✅ Bottom line:
For a retail investor bullish on spintronics and quantum-adjacent tech, a mini-portfolio of NVEC + GFS blends direct spintronics exposure with foundry-scale adoption. Add Everspin (MRAM) if you want higher-risk, higher-reward pure MRAM growth.

ED Note: Full disclosure

We recently bought NVEC shares and have placed GFS on watch list!