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

GlobalFoundries Inc. (NASDAQ:GFS)’s stock price gapped up before the market opened 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 traded.

GlobalFoundries News Roundup

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)

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Needham & Company LLC boosted their price objective on GlobalFoundries from $55.00 to $80.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Weiss Ratings raised GlobalFoundries from a “sell (d)” rating to a “hold (c)” rating in a report on Monday, March 2nd. Dbs Bank lowered GlobalFoundries from a “moderate buy” rating to a “hold” rating in a research report on Friday, February 13th. JPMorgan Chase & Co. boosted their target price on GlobalFoundries from $45.00 to $70.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Finally, Wedbush restated a “neutral” rating and set a $50.00 target price on shares of GlobalFoundries in a research report on Monday, May 4th. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $69.88.

GlobalFoundries Price Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.87 and a current ratio of 2.59. The company has a 50-day moving average of $55.26 and a 200-day moving average of $45.53. The firm has a market capitalization of $48.07 billion, a price-to-earnings ratio of 62.44, a price-to-earnings-growth ratio of 2.50 and a beta of 1.71.

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

GlobalFoundries Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Wednesday, June 24th will be paid a $0.12 dividend. The ex-dividend date is Wednesday, June 24th. This represents a $0.48 annualized dividend and a yield of 0.6%. GlobalFoundries’s payout ratio is presently 34.53%.

Insider Buying and Selling at GlobalFoundries

In other GlobalFoundries news, Director Glenda Dorchak sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $58.46, for a total value of $233,840.00. Following the sale, the director owned 18,867 shares in the company, valued at approximately $1,102,964.82. The trade was a 17.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 500 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $70.00, for a total value of $35,000.00. Following the completion of the sale, the insider owned 15,395 shares in the company, valued at $1,077,650. The trade was a 3.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 16,700 shares of company stock worth $909,572.

Institutional Investors Weigh In On GlobalFoundries

Institutional investors and hedge funds have recently made changes to their positions in the stock. Rafferty Asset Management LLC raised its stake in shares of GlobalFoundries by 18.4% during the 3rd quarter. Rafferty Asset Management LLC now owns 372,122 shares of the company’s stock worth $13,337,000 after purchasing an additional 57,774 shares in the last quarter. Allianz Asset Management GmbH bought a new stake in shares of GlobalFoundries during the 3rd quarter worth approximately $3,308,000. First Trust Advisors LP raised its stake in shares of GlobalFoundries by 15.2% during the 3rd quarter. First Trust Advisors LP now owns 2,659,454 shares of the company’s stock worth $95,315,000 after purchasing an additional 350,743 shares in the last quarter. Prevail Innovative Wealth Advisors LLC bought a new stake in shares of GlobalFoundries during the 3rd quarter worth approximately $4,769,000. Finally, NEOS Investment Management LLC raised its stake in shares of GlobalFoundries by 81.4% during the 3rd quarter. NEOS Investment Management LLC now owns 184,765 shares of the company’s stock worth $6,622,000 after purchasing an additional 82,890 shares in the last quarter.

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.