Needham & Company LLC Forecasts Strong Price Appreciation for GlobalFoundries (NASDAQ:GFS) Stock

Key Points

• Needham & Company raised its price target on GlobalFoundries from $55 to $80 and kept a "buy" rating, even though the analyst consensus remains a "Hold" with an average target of $51.59.
• GlobalFoundries beat Q1 EPS expectations ($0.40 vs. $0.35) with $1.63B in revenue, but issued conservative Q2 EPS guidance of $0.25–$0.35, below Street estimates.
• Shares jumped about 9.3% to $74.05 on heavy volume, driven by upbeat data‑center demand outlook, large call buying, analyst upgrades and a new SCALE™ optical module for AI/data‑center infrastructure.

GlobalFoundries (NASDAQ:GFS - Get Free Report) had its price objective hoisted by analysts at Needham & Company LLC from $55.00 to $80.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price objective would indicate a potential upside of 8.04% from the stock's current price.

Several other brokerages have also weighed in on GFS. Robert W. Baird upped their price objective on shares of GlobalFoundries from $40.00 to $60.00 and gave the company an "outperform" rating in a report on Thursday, February 12th. Morgan Stanley set a $43.00 price target on GlobalFoundries in a report on Monday, February 9th. Dbs Bank lowered GlobalFoundries from a "moderate buy" rating to a "hold" rating in a research report on Friday, February 13th. Loop Capital set a $80.00 price target on shares of GlobalFoundries in a research report on Monday. Finally, Wedbush restated a "neutral" rating and set a $50.00 price target on shares of GlobalFoundries in a research note on Monday. Seven analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $51.59.

GlobalFoundries Trading Up 9.3%

GlobalFoundries stock traded up $6.30 during trading hours on Tuesday, reaching $74.05. 6,870,890 shares of the company's stock were exchanged, compared to its average volume of 4,002,406. The firm's 50 day simple moving average is $48.71 and its 200 day simple moving average is $42.09. GlobalFoundries has a twelve month low of $31.51 and a twelve month high of $73.93. The company has a quick ratio of 1.95, a current ratio of 2.62 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $41.20 billion, a PE ratio of 46.57, a PEG ratio of 2.56 and a beta of 1.71.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05. The business had revenue of $1.63 billion during the quarter, compared to analysts' expectations of $1.63 billion. GlobalFoundries had a return on equity of 6.86% and a net margin of 13.05%.The firm's revenue was up 3.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.34 earnings per share. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. Research analysts predict that GlobalFoundries will post 1.37 earnings per share for the current year.

Insider Activity at GlobalFoundries

In related news, insider Michael James Hogan sold 2,300 shares of GlobalFoundries stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $60.69, for a total transaction of $139,587.00. Following the transaction, the insider 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Glenda Dorchak sold 4,000 shares of the stock in a transaction on Monday, April 20th. The shares were sold at an average price of $58.46, for a total value of $233,840.00. Following the completion of the sale, the director directly owned 18,867 shares of the company's stock, valued at $1,102,964.82. The trade was a 17.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 15,200 shares of company stock valued at $801,067 over the last 90 days.

Institutional Investors Weigh In On GlobalFoundries

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. WealthCollab LLC boosted its stake in shares of GlobalFoundries by 674.7% in the 4th quarter. WealthCollab LLC now owns 705 shares of the company's stock worth $25,000 after buying an additional 614 shares during the last quarter. True Wealth Design LLC increased its position in shares of GlobalFoundries by 216.7% during the fourth quarter. True Wealth Design LLC now owns 795 shares of the company's stock valued at $28,000 after acquiring an additional 544 shares during the last quarter. Clearstead Advisors LLC lifted its holdings in GlobalFoundries by 91.9% during the third quarter. Clearstead Advisors LLC now owns 808 shares of the company's stock worth $29,000 after acquiring an additional 387 shares during the period. First Horizon Corp purchased a new position in GlobalFoundries in the third quarter worth $33,000. Finally, Covestor Ltd boosted its position in GlobalFoundries by 57.6% in the fourth 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.

Key Headlines Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Q1 earnings beat: GF reported $0.40 EPS vs. a $0.35 consensus and revenue of $1.63B (in line), showing year-over-year revenue growth and an EPS beat that validates near-term profitability. GFS Beats Q1 Estimates
• Positive Sentiment: Upbeat demand outlook: Management signaled stronger data‑center deployments and guided Q2 revenue above Street expectations, suggesting improving end‑market demand that supports topline momentum. Reuters: GF forecasts upbeat Q2
• Positive Sentiment: Large options activity: Unusually heavy call buying (≈14,501 calls, ~70% above normal daily call volume) indicates speculative and institutional bullish positioning that can amplify intraday upside. (Internal trade data)
• Positive Sentiment: Analyst upgrade / investor‑day momentum: Cantor Fitzgerald upgraded GF ahead of investor day, helping sentiment around near‑term catalysts. Barron's: Upgrade
• Positive Sentiment: New product push into AI infra: GF announced SCALE™ optical module for co‑packaged optics (CPO), expanding exposure to AI/data‑center infrastructure — a strategic business development that investors tend to reward. GlobeNewswire: SCALE optical module
• Neutral Sentiment: Form 6‑K / filings: Company filed Q1 unaudited financials and management analysis (Form 6‑K) — routine disclosure that provides more detail but is not itself a directional catalyst. TipRanks: Form 6-K
• Neutral Sentiment: Small insider selling disclosed: An insider sold 500 shares under a pre‑arranged 10b5‑1 plan (routine, modest dollar amount) — typically noise for fundamentals. SEC Form 4 — Samak L. Azar
• Negative Sentiment: Conservative EPS guidance: GF set Q2 EPS guidance of $0.25–$0.35 versus a $0.39 consensus, which is a negative near‑term earnings signal and could cap upside if margins or mix weaken. (Company guidance)
• Negative Sentiment: Analyst caution / price target gap: Wedbush reiterated a "neutral" rating with a $50 target — a material downside to recent levels — introducing analyst skepticism that may limit multiple expansion. AmericanBankingNews: Wedbush neutral

About GlobalFoundries

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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