10 Worst Performing NASDAQ Stocks in 2024

7. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)

Year to Date Gain: -29.96%

Number of Hedge Fund Holders: 21

GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is a semiconductor company that provides mainstream wafer fabrication services and technologies. It manufactures various semiconductor devices, including microprocessors and mobile application processors.

The company’s woes in the market stem from failing to capitalize on the artificial intelligence boom. Consequently, the stock is down by about 29.96%, emerging as one of the worst-performing NASDAQ stocks in 2024.

In its second-quarter report, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) did not state how it is positioned to benefit from AI, let alone mention the words AI. As other companies led by Taiwan Semiconductor ramp up chip production to meet the growing demand for AI, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) remains focused on serving the smartphone, automotive and Internet of Things sectors. Consequently, the company’s sales growth has been much lower than those of companies exposed to AI.

The company’s latest quarter saw a 12% year-over-year decline in revenue, indicating that it is finding it difficult to take advantage of the boom occurring in other areas of the chip industry. The significant revenue drop might explain why the stock remains under pressure.

There are cyclical trends in the semiconductor industry, and GLOBALFOUNDRIES Inc. (NASDAQ:GFS) experienced a decline in the first half of 2024. Nevertheless, stronger demand from the automotive sector is already helping revenue recover from its lowest points