HSBC Maintains Hold on GLOBALFOUNDRIES, Lowers Price Target to $43
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 03 2024
0mins
Source: Benzinga
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Analyst Views on GFS
Wall Street analysts forecast GFS stock price to fall
11 Analyst Rating
2 Buy
7 Hold
2 Sell
Hold
Current: 70.790
Low
35.00
Averages
41.32
High
48.50
Current: 70.790
Low
35.00
Averages
41.32
High
48.50
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.
GlobalFoundries Launches Quantum Technology Solutions to Scale Quantum Computing
- New Quantum Business: GlobalFoundries (GF) has launched Quantum Technology Solutions aimed at meeting the manufacturing needs of the quantum computing industry, marking its entry into the next generation of high-performance computing and expected to enhance U.S. leadership in quantum technology.
- Government Funding Support: The U.S. Department of Commerce has signed a letter of intent with GF to provide $375 million to accelerate the build-out of Quantum Technology Solutions, reflecting the importance of national security and promoting the establishment of a domestic quantum manufacturing base.
- Enhanced Manufacturing Capabilities: GF's FDX™ platform will provide the necessary cryogenic CMOS technology for quantum systems, supporting the manufacturing of various quantum processor units (QPUs), which is expected to facilitate the transition of quantum computing from lab-scale to industrial-scale, thereby enhancing market competitiveness.
- Ecosystem Collaboration: GF has established partnerships with several quantum companies, including Diraq and Equal1, leveraging its advanced manufacturing capabilities to accelerate the development of high-performance quantum processors, which is expected to create thousands of high-paying jobs in the U.S. and drive the practical application of quantum technology.
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Applied Digital Signs Major AI Infrastructure Contract
- Contract Boosts Stock: Applied Digital's 15-year lease agreement with a major U.S. hyperscale customer covering 300 megawatts of IT capacity pushes its total AI infrastructure capacity above 1 gigawatt, expected to generate approximately $7.5 billion in revenue during the initial lease period, significantly enhancing its stature in the AI infrastructure sector.
- Fuel Cell Technology Recognition: Bloom Energy's stock rose after Nebius Group selected its fuel cell technology for U.S. data center expansion, with potential revenue of up to $2.6 billion over a decade, indicating the growing importance of alternative power systems in AI facilities.
- Quantum Manufacturing Initiative: GlobalFoundries shares hit a record high of $81.46 following its announcement of plans to receive up to $375 million in federal funding through the CHIPS Act to support quantum computing infrastructure, launching a new business unit focused on Quantum Technology Solutions, pushing its market value above $44 billion.
- Market Enthusiasm: Stocks of Applied Digital, Bloom Energy, and GlobalFoundries reached fresh 52-week highs, reflecting strong investor interest in companies tied to computing capacity, energy infrastructure, and quantum machine learning, with respective gains of 21%, 9%, and 14%.
See More
UCLA Launches $125 Million Semiconductor Hub with Industry Partners
- Semiconductor Hub Launch: Broadcom, Meta, Applied Materials, GlobalFoundries, and Synopsys have joined forces to establish a $125 million 'Semiconductor Hub' at UCLA's Samueli School of Engineering, aimed at accelerating research across chip design, manufacturing, and software, thereby fostering innovation in the semiconductor ecosystem.
- Research and Internship Opportunities: The hub will provide yearlong internships for engineering doctoral students with the partner companies, helping them shorten the timeline for new chip innovations to reach the rapidly changing market and enhancing their career development pathways.
- Industry-Academic Collaboration: UCLA Samueli Dean Ah-Hyung Park emphasized the importance of strengthening ties between industry and academia as semiconductor complexity increases and AI development accelerates, with expectations that this collaboration will expedite technology breakthroughs to market.
- Addressing Market Challenges: Amidst AI's disruption of the job market, Meta plans to cut 8,000 jobs, approximately 10% of its workforce, and this partnership aims to provide students with better career opportunities, helping them navigate an uncertain job landscape.
See More
UCLA Launches $125 Million Semiconductor Hub for AI Chip Innovation
- Partnership Formation: Broadcom, Meta, Applied Materials, GlobalFoundries, and Synopsys have joined forces to establish a $125 million Semiconductor Hub aimed at accelerating research and workforce development for AI chip technologies, fostering innovations across chip design, equipment, software, and manufacturing.
- Research Commitment: Located at the UCLA Samueli School of Engineering, the hub will operate under a five-year commitment, enabling faculty and student researchers to collaborate with founding companies to shorten the timeline for new chip innovations to meet rapidly changing market demands.
- Internship Opportunities: The funding will also provide yearlong internships for engineering doctoral students with the partner companies, helping students gain practical experience in the industry and paving the way for better career paths.
- Industry-Academic Synergy: As semiconductor complexity increases and AI development accelerates, Applied Materials CEO Gary Dickerson emphasized the importance of strengthening ties between industry and academia to bring technology breakthroughs to market faster while inspiring the next generation of engineering talent.
See More
Oil Price Fluctuations Impact Market Sentiment
- Market Recovery: The S&P 500 index rebounded in afternoon trading on Thursday after earlier losses, primarily influenced by oil prices dropping below $100 per barrel, indicating a cautious optimism regarding economic prospects.
- Consumer Confidence Divide: Walmart's earnings met expectations but warned that high fuel prices are pressuring lower-income consumers, with their fuel purchases falling below 10 gallons for the first time, reflecting a growing trend of economic inequality.
- Quantum Computing Investment: The Trump administration announced $2 billion in grants to support the quantum computing sector, resulting in stock price increases of 8% for IBM and 11% for GlobalFoundries, highlighting the government's commitment to emerging technology fields.
- IPO Prospects: Quantinuum plans to conduct an IPO expected to raise over $1.5 billion, valuing the company between $15 billion and $20 billion, with Honeywell, its majority stakeholder, potentially benefiting, although Jim Cramer expressed caution regarding the stock's recent price surge.
See More
Quantum Computing Stocks Surge on $2 Billion Grants Report
- Quantum Stock Surge: Shares of quantum computing companies soared following a Wall Street Journal report that the government plans to award $2 billion in grants to nine firms, with Rigetti Computing jumping over 30%, D-Wave Quantum rising 22%, and Quantum Computing increasing 13%, indicating strong market confidence in the future of quantum technology.
- Rare Earth Rebound: Rare earth stocks extended their rebound amid concerns over export restrictions from China, with USA Rare Earth rising 7% after securing $19.3 million in funding from the Department of Energy for rare earth separation development, and Critical Metals gaining 3% after signing a 15-year offtake agreement with Greenland's Tanbreez, reflecting robust demand for rare earth resources.
- Spotify's Strong Outlook: Spotify provided a strong growth forecast at its first investor day since 2022, expecting revenue to grow at a compound annual growth rate in the mid-teens and aiming for 1 billion subscribers, leading to a 14% rise in shares, showcasing optimistic market sentiment regarding its long-term growth potential.
- Walmart's Disappointing Outlook: Walmart's shares fell nearly 7% after issuing a disappointing outlook, expecting adjusted earnings per share between $2.75 and $2.85, below the $2.91 expected by the market, despite meeting first-quarter adjusted EPS expectations, which may undermine investor confidence.
See More
GlobalFoundries Launches Quantum Technology Solutions to Scale Quantum Computing
- New Quantum Business: GlobalFoundries (GF) has launched Quantum Technology Solutions aimed at meeting the manufacturing needs of the quantum computing industry, marking its entry into the next generation of high-performance computing and expected to enhance U.S. leadership in quantum technology.
- Government Funding Support: The U.S. Department of Commerce has signed a letter of intent with GF to provide $375 million to accelerate the build-out of Quantum Technology Solutions, reflecting the importance of national security and promoting the establishment of a domestic quantum manufacturing base.
- Enhanced Manufacturing Capabilities: GF's FDX™ platform will provide the necessary cryogenic CMOS technology for quantum systems, supporting the manufacturing of various quantum processor units (QPUs), which is expected to facilitate the transition of quantum computing from lab-scale to industrial-scale, thereby enhancing market competitiveness.
- Ecosystem Collaboration: GF has established partnerships with several quantum companies, including Diraq and Equal1, leveraging its advanced manufacturing capabilities to accelerate the development of high-performance quantum processors, which is expected to create thousands of high-paying jobs in the U.S. and drive the practical application of quantum technology.
See More
Applied Digital Signs Major AI Infrastructure Contract
- Contract Boosts Stock: Applied Digital's 15-year lease agreement with a major U.S. hyperscale customer covering 300 megawatts of IT capacity pushes its total AI infrastructure capacity above 1 gigawatt, expected to generate approximately $7.5 billion in revenue during the initial lease period, significantly enhancing its stature in the AI infrastructure sector.
- Fuel Cell Technology Recognition: Bloom Energy's stock rose after Nebius Group selected its fuel cell technology for U.S. data center expansion, with potential revenue of up to $2.6 billion over a decade, indicating the growing importance of alternative power systems in AI facilities.
- Quantum Manufacturing Initiative: GlobalFoundries shares hit a record high of $81.46 following its announcement of plans to receive up to $375 million in federal funding through the CHIPS Act to support quantum computing infrastructure, launching a new business unit focused on Quantum Technology Solutions, pushing its market value above $44 billion.
- Market Enthusiasm: Stocks of Applied Digital, Bloom Energy, and GlobalFoundries reached fresh 52-week highs, reflecting strong investor interest in companies tied to computing capacity, energy infrastructure, and quantum machine learning, with respective gains of 21%, 9%, and 14%.
See More
UCLA Launches $125 Million Semiconductor Hub with Industry Partners
- Semiconductor Hub Launch: Broadcom, Meta, Applied Materials, GlobalFoundries, and Synopsys have joined forces to establish a $125 million 'Semiconductor Hub' at UCLA's Samueli School of Engineering, aimed at accelerating research across chip design, manufacturing, and software, thereby fostering innovation in the semiconductor ecosystem.
- Research and Internship Opportunities: The hub will provide yearlong internships for engineering doctoral students with the partner companies, helping them shorten the timeline for new chip innovations to reach the rapidly changing market and enhancing their career development pathways.
- Industry-Academic Collaboration: UCLA Samueli Dean Ah-Hyung Park emphasized the importance of strengthening ties between industry and academia as semiconductor complexity increases and AI development accelerates, with expectations that this collaboration will expedite technology breakthroughs to market.
- Addressing Market Challenges: Amidst AI's disruption of the job market, Meta plans to cut 8,000 jobs, approximately 10% of its workforce, and this partnership aims to provide students with better career opportunities, helping them navigate an uncertain job landscape.
See More
UCLA Launches $125 Million Semiconductor Hub for AI Chip Innovation
- Partnership Formation: Broadcom, Meta, Applied Materials, GlobalFoundries, and Synopsys have joined forces to establish a $125 million Semiconductor Hub aimed at accelerating research and workforce development for AI chip technologies, fostering innovations across chip design, equipment, software, and manufacturing.
- Research Commitment: Located at the UCLA Samueli School of Engineering, the hub will operate under a five-year commitment, enabling faculty and student researchers to collaborate with founding companies to shorten the timeline for new chip innovations to meet rapidly changing market demands.
- Internship Opportunities: The funding will also provide yearlong internships for engineering doctoral students with the partner companies, helping students gain practical experience in the industry and paving the way for better career paths.
- Industry-Academic Synergy: As semiconductor complexity increases and AI development accelerates, Applied Materials CEO Gary Dickerson emphasized the importance of strengthening ties between industry and academia to bring technology breakthroughs to market faster while inspiring the next generation of engineering talent.
See More
Oil Price Fluctuations Impact Market Sentiment
- Market Recovery: The S&P 500 index rebounded in afternoon trading on Thursday after earlier losses, primarily influenced by oil prices dropping below $100 per barrel, indicating a cautious optimism regarding economic prospects.
- Consumer Confidence Divide: Walmart's earnings met expectations but warned that high fuel prices are pressuring lower-income consumers, with their fuel purchases falling below 10 gallons for the first time, reflecting a growing trend of economic inequality.
- Quantum Computing Investment: The Trump administration announced $2 billion in grants to support the quantum computing sector, resulting in stock price increases of 8% for IBM and 11% for GlobalFoundries, highlighting the government's commitment to emerging technology fields.
- IPO Prospects: Quantinuum plans to conduct an IPO expected to raise over $1.5 billion, valuing the company between $15 billion and $20 billion, with Honeywell, its majority stakeholder, potentially benefiting, although Jim Cramer expressed caution regarding the stock's recent price surge.
See More
Quantum Computing Stocks Surge on $2 Billion Grants Report
- Quantum Stock Surge: Shares of quantum computing companies soared following a Wall Street Journal report that the government plans to award $2 billion in grants to nine firms, with Rigetti Computing jumping over 30%, D-Wave Quantum rising 22%, and Quantum Computing increasing 13%, indicating strong market confidence in the future of quantum technology.
- Rare Earth Rebound: Rare earth stocks extended their rebound amid concerns over export restrictions from China, with USA Rare Earth rising 7% after securing $19.3 million in funding from the Department of Energy for rare earth separation development, and Critical Metals gaining 3% after signing a 15-year offtake agreement with Greenland's Tanbreez, reflecting robust demand for rare earth resources.
- Spotify's Strong Outlook: Spotify provided a strong growth forecast at its first investor day since 2022, expecting revenue to grow at a compound annual growth rate in the mid-teens and aiming for 1 billion subscribers, leading to a 14% rise in shares, showcasing optimistic market sentiment regarding its long-term growth potential.
- Walmart's Disappointing Outlook: Walmart's shares fell nearly 7% after issuing a disappointing outlook, expecting adjusted earnings per share between $2.75 and $2.85, below the $2.91 expected by the market, despite meeting first-quarter adjusted EPS expectations, which may undermine investor confidence.
See More
