GlobalFoundries (NASDAQ:GFS) Shares Gap Up - Should You Buy?

Key Points

• GlobalFoundries shares gapped up sharply on Friday, opening at $85.68 versus a prior close of $81.35 and last trading around $88.33. The move came on strong volume of more than 2.18 million shares.
• The stock was boosted by positive news around quantum and AI-related opportunities, including the launch of Quantum Technology Solutions and reports of potential U.S. government CHIPS funding and an equity stake. Coverage also highlighted its push into co-packaged optics for AI data centers.
• Despite the jump, analysts remain mixed: the consensus rating is Hold with a consensus price target of $69.88, though some firms recently raised targets and Cantor Fitzgerald upgraded the stock to overweight. The company also beat Q1 EPS estimates and pays a quarterly dividend of $0.12.

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report)'s share price gapped up prior to trading on Friday . The stock had previously closed at $81.35, but opened at $85.68. GlobalFoundries shares last traded at $88.33, with a volume of 2,184,640 shares.

GlobalFoundries News Summary

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries launched Quantum Technology Solutions to manufacture critical quantum hardware components, including processor units, cryogenic control/readout ICs, advanced packaging, and superconducting interconnects, which could expand its addressable market. GlobalFoundries launches Quantum Technology Solutions to scale U.S. quantum manufacturing
• Positive Sentiment: Reports that the U.S. government may provide a large funding award and take an equity stake have likely boosted confidence in GlobalFoundries’ role in strategic domestic chip manufacturing. GLOBALFOUNDRIES (GFS) Is Up 10.2% After New Quantum-Focused CHIPS Funding and VC Partnership
• Positive Sentiment: Additional coverage highlighted new semiconductor advances and the company’s push into co-packaged optics for AI data centers, which may support longer-term demand from high-performance computing and AI infrastructure. New semiconductor advances announced at GlobalFoundries
• Positive Sentiment: GlobalFoundries is also being cited as a beneficiary of the broader U.S. quantum funding push, which has lifted sentiment across the quantum-computing supply chain. IBM, D-Wave, Rigetti, GlobalFoundries confirm proposed US quantum funding awards (update)

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. The Goldman Sachs Group restated a "neutral" rating and issued a $70.00 price objective on shares of GlobalFoundries in a research note on Tuesday, May 5th. Cantor Fitzgerald upgraded shares of GlobalFoundries from a "neutral" rating to an "overweight" rating and raised their price objective for the stock from $50.00 to $80.00 in a research note on Monday, May 4th. JPMorgan Chase & Co. lifted their price target on shares of GlobalFoundries from $45.00 to $70.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. TD Cowen reiterated a "buy" rating on shares of GlobalFoundries in a research note on Thursday, February 12th. Finally, Wedbush reiterated a "neutral" rating and set a $50.00 price target on shares of GlobalFoundries in a research note on Monday, May 4th. Eight research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, GlobalFoundries presently has a consensus rating of "Hold" and a consensus target price of $69.88.

GlobalFoundries Stock Performance

The company has a market capitalization of $48.07 billion, a P/E ratio of 62.44, a PEG ratio of 2.50 and a beta of 1.71. The stock has a fifty day simple moving average of $55.26 and a 200-day simple moving average of $45.53. The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.35 by $0.05. The company had revenue of $1.63 billion during the quarter, compared to analysts' expectations of $1.63 billion. GlobalFoundries had a return on equity of 6.85% and a net margin of 11.40%.The business's revenue was up 3.1% on a year-over-year basis. During the same period last year, the business earned $0.34 earnings per share. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. Equities analysts forecast that GlobalFoundries Inc. will post 1.38 EPS for the current year.

GlobalFoundries Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Wednesday, June 24th will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Wednesday, June 24th. GlobalFoundries's payout ratio is currently 34.53%.

Insider Activity at GlobalFoundries

In related news, insider Michael James Hogan sold 2,300 shares of GlobalFoundries stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $60.69, for a total value of $139,587.00. Following the completion of the transaction, the insider directly owned 16,045 shares of the company's stock, valued at $973,771.05. The trade was a 12.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 500 shares of GlobalFoundries stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $59.66, for a total value of $29,830.00. Following the completion of the transaction, the insider directly owned 16,994 shares of the company's stock, valued at $1,013,862.04. This represents a 2.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 16,700 shares of company stock valued at $909,572 over the last ninety days.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in GFS. WealthCollab LLC raised its holdings in GlobalFoundries by 674.7% during the 4th quarter. WealthCollab LLC now owns 705 shares of the company's stock worth $25,000 after purchasing an additional 614 shares during the last quarter. True Wealth Design LLC raised its holdings in GlobalFoundries by 216.7% during the 4th quarter. True Wealth Design LLC now owns 795 shares of the company's stock worth $28,000 after purchasing an additional 544 shares during the last quarter. Clearstead Advisors LLC raised its holdings in GlobalFoundries by 91.9% during the 3rd quarter. Clearstead Advisors LLC now owns 808 shares of the company's stock worth $29,000 after purchasing an additional 387 shares during the last quarter. Parallel Advisors LLC raised its holdings in GlobalFoundries by 39.8% during the 1st quarter. Parallel Advisors LLC now owns 832 shares of the company's stock worth $37,000 after purchasing an additional 237 shares during the last quarter. Finally, Covestor Ltd raised its holdings in GlobalFoundries by 57.6% during the 4th quarter. Covestor Ltd now owns 955 shares of the company's stock worth $33,000 after purchasing an additional 349 shares during the last quarter.

GlobalFoundries Company Profile

GlobalFoundries, Inc NASDAQ: GFS is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.

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