GlobalFoundries Inc shares increased by 5.54% during regular trading, crossing above the 5-day SMA. This movement occurs amid a mixed market environment, with the Nasdaq-100 down 0.25% and the S&P 500 slightly up by 0.09%.
The stock's rise can be attributed to sector rotation, as investors are shifting their focus towards semiconductor stocks despite broader market concerns about economic prospects. Analysts have expressed worries regarding the semiconductor industry's demand outlook, particularly for consumer electronics, which has led to a cautious sentiment in the market. However, GlobalFoundries' strategic positioning in the U.S. and Europe may provide it with a competitive edge.
This increase in GlobalFoundries' stock price suggests that investors are looking for opportunities within the semiconductor sector, potentially driven by the company's strong fundamentals and minimal exposure to geopolitical risks, which could enhance its attractiveness in a challenging market.
Wall Street analysts forecast GFS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GFS is 38.88 USD with a low forecast of 35.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast GFS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GFS is 38.88 USD with a low forecast of 35.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
5 Hold
2 Sell
Hold
Current: 44.220
Low
35.00
Averages
38.88
High
45.00
Current: 44.220
Low
35.00
Averages
38.88
High
45.00
Wedbush
Outperform -> Neutral
downgrade
$42 -> $40
2025-12-31
Reason
Wedbush
Price Target
$42 -> $40
AI Analysis
2025-12-31
downgrade
Outperform -> Neutral
Reason
As previously reported, Wedbush downgraded GlobalFoundries to Neutral from Outperform with a price target of $40, down from $42. While the firm believes that GlobalFoundries has a path to a model with stronger revenues, improved utilization, and better margins on improved end market fundamentals and a shift towards local supply chains, it also believes recent developments have elongated the timeframe around when those catalysts might play out, the analyst tells investors. Recent checks in Taiwan suggest that industrial and auto demand remains relatively weak, with no anticipation of any near-term recovery, the analyst added.
Wedbush
Outperform -> Neutral
downgrade
$42 -> $40
2025-12-31
Reason
Wedbush
Price Target
$42 -> $40
2025-12-31
downgrade
Outperform -> Neutral
Reason
Wedbush downgraded GlobalFoundries to Neutral from Outperform with a price target of $40, down from $42.
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BofA
Underperform
maintain
$37 -> $41
2025-12-16
Reason
BofA
Price Target
$37 -> $41
2025-12-16
maintain
Underperform
Reason
BofA raised the firm's price target on GlobalFoundries to $41 from $37 and keeps an Underperform rating on the shares. The firm is updating its price targets for U.S. Semiconductor stocks under its coverage, the analyst tells investors. BofA views 2026 as a midpoint for an 8 to 10 year journey upgrading traditional IT infrastructure for faster, AI workloads. While stocks may remain choppy amid greater scrutiny of AI returns and hyperscaler cash flows, this should be offset by faster large language model builders and AI factories, the firm adds.
BofA
Underperform
maintain
$33 -> $37
2025-12-04
Reason
BofA
Price Target
$33 -> $37
2025-12-04
maintain
Underperform
Reason
BofA raised the firm's price target on GlobalFoundries to $37 from $33 and keeps an Underperform rating on the shares. After having listened to the company's webinar on its participation in the emerging physical AI theme, the firm trims estimates for a shallower recovery slope, but raised its target as it upped its multiple given the company's increasing AI focus.
About GFS
GlobalFoundries Inc. is a semiconductor manufacturer. The Company offers a range of mainstream wafer fabrication services and technologies. It manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. Its specialized foundry manufacturing processes include a library consisting of qualified circuit-building block designs (known as IP titles or IP blocks), and advanced transistor and device technology. The Company's differentiated technology platforms include radio frequency (RF) silicon-on-insulator (SOI), Fin Field-Effect Transistor (FinFET), FDX, Complementary Metal-Oxide Semiconductor (CMOS), Silicon Germanium (SiGe), Gallium Nitride (GaN), Bipolar-CMOS-DMOS (BCD), and Silicon Photonics (SiPh).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
