If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider GlobalFoundries Inc. (GFS - Free Report) . This company, which is in the Zacks Electronics - Semiconductors industry, shows potential for another earnings beat.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 15.65%.
For the last reported quarter, GlobalFoundries came out with earnings of $0.4 per share versus the Zacks Consensus Estimate of $0.35 per share, representing a surprise of 14.29%. For the previous quarter, the company was expected to post earnings of $0.47 per share and it actually produced earnings of $0.55 per share, delivering a surprise of 17.02%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for GlobalFoundries. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
GlobalFoundries currently has an Earnings ESP of +0.33%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Michael James Hogan, Chief Strategy Officer of Globalfoundries Inc. (GFS 1.06%), reported the disposition of 2,800 ordinary shares on July 8, 2026 and July 9, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$187,124Shares sold2,700Shares gifted100Post-transaction shares (directly held)795Post-transaction value$55,419.45Transaction value based on SEC Form 4 weighted average sale price ($66.83); post-transaction value based on July 09, 2026 market close ($69.71).
Key questionsHow has the insider's direct equity position changed following this activity?
Michael James Hogan reduced the direct holding of ordinary shares by 78%, retaining a post-transaction balance of 795 shares which represent the residual direct interest in the firm's equity.In what market context did this disposition occur?
The activity occurred following a period in which Globalfoundries shares delivered a 70% one-year return as of the July 9, 2026 market close, with the insider selling shares at $66.83 per share.What was the nature of these transactions?
The dispositions were performed under a Rule 10b5-1 plan. This indicates that the sale of 2,700 shares and the gift of 100 shares were pre-arranged, with the execution parameters established prior to the transaction dates to provide for systematic liquidity.Company OverviewMetricValueShare Price (as of market close 2026-07-09)$69.71Market Capitalization$38.2 billionRevenue (TTM)$6.8 billionNet Income (TTM)$778.0 millionCompany SnapshotGlobalFoundries Inc. operates as a global semiconductor foundry specializing in the design and manufacturing of integrated circuits, including microprocessors, mobile application processors, baseband and network processors, radio frequency modems, microcontrollers, power management units, and microelectromechanical systems for a broad range of consumer and industrial electronic applications.The company generates revenue through a foundry business model, providing semiconductor manufacturing services to fabless design companies and original equipment manufacturers that require advanced chip production capabilities without maintaining their own fabrication facilities.GlobalFoundries serves a diverse customer base spanning telecommunications, automotive, industrial, consumer electronics, and computing sectors, with particular strength in serving mid-range and specialized semiconductor applications across global markets.GlobalFoundries Inc. operates as one of the world's leading independent semiconductor foundries with a global manufacturing footprint and approximately 13,000 employees. The company has demonstrated strong financial performance with TTM revenue of $6.8 billion and net income of $778.0 million, reflecting robust demand for specialized semiconductor manufacturing services.
GlobalFoundries' competitive positioning is anchored by its advanced manufacturing capabilities, diversified customer base, and strategic focus on high-value semiconductor segments that support critical infrastructure and emerging technologies.
What this transaction means for investorsThe sale of GlobalFoundries stock by Chief Strategy Officer Michael Hogan came at a time when shares experienced a substantial fall from the 52-week high of $92.55 reached on May 26. The price drop was due to investors cashing in after a strong run up in the second quarter, and a broader sell-off across the semiconductor sector.
Amidst this backdrop, it’s not comforting for investors to see Hogan adding his dispositions to the fray, especially since it depleted nearly 80% of his holdings. Still, the transactions were pre-arranged as part of his Rule 10b5-1 plan, indicating they were non-discretionary in nature. Consequently, it seems Hogan’s sales happened to coincide with Wall Street’s rotation away from semiconductor stocks.
GlobalFoundries had a solid first quarter with sales of $1.6 billion, up 3% year over year, and excellent margin expansion as its gross margin rose to 27.6% compared to 22.4% in the previous year.
Robert Izquierdo has positions in GlobalFoundries. The Motley Fool has positions in and recommends GlobalFoundries. The Motley Fool has a disclosure policy.
Artificial intelligence may be the biggest technology race in the world, but SandboxAQ CEO Jack Hidary believes the United States is still investing with the wrong playbook.
Speaking on CNBC on Thursday, July 9, Hidary argued that America should treat strategic technologies the way countries like Norway manage national wealth by making long-term investments in industries that strengthen economic competitiveness. The timing of his comments was notable, coming alongside a $500 million federal award for SandboxAQ’s large quantitative models (LQMs) and growing government support for quantum computing and advanced manufacturing.
Why Hidary Wants a U.S. Sovereign Wealth Fund Hidary framed recent federal equity stakes and grants as part of a broader capital strategy, not one-off subsidies. “Many countries out there have a sovereign wealth fund. Norway has a very successful one now at $2 trillion. It’s time that America really has a sovereign wealth fund to really push forward the core technologies that advance our economy,” he said on CNBC.
He tied that thesis directly to domestic capacity. “This investment in SandboxAQ and in other companies… [is] really part of a larger picture of a sovereign wealth strategy that builds value for the American taxpayer, builds resiliency so that we can build semiconductors in America, so that we can build the advanced pharmaceuticals in America as well,” Hidary added.
Oslo’s Government Pension Fund Global in Norway, valued at $2 trillion, functions as a long-duration equity investor funded by resource revenues. Hidary’s version would deploy federal capital into deep-tech companies whose outputs, from battery chemistries to pharmaceutical candidates, feed strategic industries.
The $500 Million CHIPS Award and What LQMs Do SandboxAQ announced it had won a $500 million award from the Department of Commerce’s CHIPS program for its large quantitative models. LQMs sit alongside large language models in the current AI stack but are engineered to reason about numerical and physical systems rather than text. Hidary said the models can produce novel battery chemistries without relying on foreign raw-material sources, an explicit response to supply-chain concentration in critical minerals.
His framing of the addressable opportunity was blunt. “If you want to make a new drug for cancer, for Alzheimer’s, if you want to make a new material for batteries… we just won the award from the CHIPS program of the Department of Commerce. 500 million award for our LQMs,” he said. Because 85% of the U.S. economy is quantitatively based, the target market for quantitative reasoning tools stretches across pharma, energy, materials, and financial services.
SandboxAQ’s models are now available on the Google Cloud Marketplace to enterprise customers. Placing LQMs inside an existing procurement channel shortens sales cycles for regulated buyers that already run workloads on Google Cloud.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and IBM didn't make the cut. Grab the names FREE today.
Quantum Computing May Be the Next Federal Investment Wave Hidary’s sovereign-wealth argument fits alongside the Commerce Department’s broader quantum push. On May 21, 2026, the department announced $2.013 billion in federal incentives under the CHIPS and Science Act through letters of intent with 9 companies, including two quantum foundries and seven quantum computing companies.
IBM (NYSE:IBM | IBM Price Prediction) was slated to receive $1 billion in planned funding to establish a new quantum foundry subsidiary for quantum-grade superconducting wafers, and GlobalFoundries (NASDAQ:GFS) was set for $375 million in planned funding to establish a secure, domestic quantum foundry.
Hidary flagged that program as an underappreciated catalyst. “The Department of Commerce recently announced letters of intent in a number of quantum hardware companies. I think that could be a very big positive for that sector,” he said.
For readers interested in how AI power demand and infrastructure could create new opportunities, our team’s Free Report: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers) is worth reading.
What to Watch Next Hidary’s proposal reaches well beyond SandboxAQ. His broader argument is that America should treat strategic technologies as long-term national investments rather than as isolated corporate subsidies.
The next clues will come from Washington. Additional CHIPS awards, enterprise adoption of SandboxAQ’s models through Google Cloud Marketplace, and any movement toward a U.S. sovereign investment vehicle would all signal whether policymakers are embracing the capital-allocation strategy Hidary envisions.
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GlobalFoundries stock is under selling pressure. Why is GFS stock retreating? The PartnershipThe collaboration leverages GlobalFoundries’ process technology leadership and U.S. manufacturing capabilities alongside SEALSQ’s expertise in hardware-based certified security and PQC-ready silicon solutions.
GlobalFoundries Shares SlideGFS Price Action: At the time of publication, GlobalFoundries shares are trading 1.99% lower at $64.53, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Geneva, Switzerland, July 08, 2026 (GLOBE NEWSWIRE) --
SEALSQ Corp (Nasdaq: LAES) ("SEALSQ") and GlobalFoundries (Nasdaq: GFS) (GF) today announced a strategic Memorandum of Understanding (MoU) to co-develop across secure semiconductor platforms, Post-Quantum Cryptography (PQC) and emerging semiconductor-based quantum computing technologies. The partnership leverages GF's process technology leadership and manufacturing capabilities alongside SEALSQ's expertise in hardware-based certified security, PQC-ready silicon solutions and ongoing investments in quantum technologies.
Semiconductor CMOS technology has powered the digital revolution for decades by enabling continuous transistor scaling, higher integration density, and cost-effective mass production. It is now emerging as a key enabler of the quantum era, allowing quantum processors to be built on proven high-volume semiconductor manufacturing platforms that deliver the scalability, reliability, and cost efficiency required for widespread industrial adoption.
The collaboration will focus on developing Post-Quantum Cryptography (PQC) security IP, secure chiplet architectures, and a CryoCMOS ecosystem to support future quantum computing systems, advancing three strategic areas:
Expanding GF's IP Ecosystem with Certified PQC Security Building Blocks In partnership with MIPS, a GF company, the companies will co-develop pre-certified PQC security IP (hard macro) blocks and Chiplet Hardware Security Module (CHSM) components, targeting applications including Hardware Security Modules (HSMs) and Secure Enclaves.
Advancing Cryogenic CMOS for Quantum Computing Building on GF's recently announced Quantum Technology Solutions business and SEALSQ's ongoing ambitions in quantum ASIC design, the companies will collaborate on the design and development of cryoelectronic ASICs operating at ultra-low temperatures for joint clients and partners, leveraging GF’s U.S. manufacturing capabilities and footprint.
Aligned with Sovereign and Trusted Supply Chain Objectives The partnership is designed to support European and U.S. sovereign supply chain priorities. Both companies share a commitment to trusted, traceable, and secure semiconductor production.
“A shared long-term vision between GF and SEALSQ is that semiconductors, cybersecurity, Post-Quantum Cryptography, and quantum computing are converging into a single technology ecosystem,” said Carlos Moreira, CEO of SEALSQ. “GlobalFoundries is one of the world’s leading semiconductor manufacturers, and its growing commitment to security and quantum technologies perfectly complements SEALSQ’s expertise in secure semiconductors, PQC, and our investments across the quantum ecosystem. This partnership is a natural fit and a powerful validation of our shared vision. Together, we have the opportunity to help shape the secure and scalable technology platforms that will power the quantum era.”
“This partnership is about building the foundation for the quantum era: trusted digital infrastructure secured by Post-Quantum Cryptography and the semiconductor technologies that will enable future quantum computing systems,” said Nicholas Sergeant, vice president of Quantum Technology Solutions at GF. “SEALSQ's secure-semiconductor and Post-Quantum Cryptography expertise complements GF's differentiated technology portfolio and expanding quantum capabilities. Together, we are uniquely positioned to give customers and partners the technologies needed to secure and enable the quantum future.”
The initiative builds on GF’s long-standing investments in quantum technologies and complements its new Quantum Technology Solutions business alongside SEALSQ’s investments in quantum computing, reinforcing the critical role of semiconductors in enabling scalable and commercially viable quantum systems.
About SEALSQ:
SEALSQ is a leading innovator in Post-Quantum Technology hardware and software solutions. Our technology seamlessly integrates Semiconductors, PKI (Public Key Infrastructure), and Provisioning Services, with a strategic emphasis on developing state-of-the-art Quantum Resistant Cryptography and Semiconductors designed to address the urgent security challenges posed by quantum computing. As quantum computers advance, traditional cryptographic methods like RSA and Elliptic Curve Cryptography (ECC) are increasingly vulnerable.
SEALSQ is pioneering the development of Post-Quantum Semiconductors that provide robust, future-proof protection for sensitive data across a wide range of applications, including Multi-Factor Authentication tokens, Smart Energy, Medical and Healthcare Systems, Defense, IT Network Infrastructure, Automotive, and Industrial Automation and Control Systems. By embedding Post-Quantum Cryptography into our semiconductor solutions, SEALSQ ensures that organizations stay protected against quantum threats. Our products are engineered to safeguard critical systems, enhancing resilience and security across diverse industries.
For more information on our Post-Quantum Semiconductors and security solutions, please visit www.sealsq.com.
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF's talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.
Forward-Looking Statements
This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipate will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include SEALSQ's ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ's filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.
SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
SEALSQ Corp.
Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000 [email protected] Investor Relations (US)
The Equity Group Inc.
Lena Cati
Tel: +1 212 836-9611 [email protected]
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. GlobalFoundries Inc. (GFS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
GlobalFoundries Inc. is a member of our Computer and Technology group, which includes 613 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. GlobalFoundries Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for GFS' full-year earnings has moved 0.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, GFS has gained about 97.3% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 16.6% on average. This means that GlobalFoundries Inc. is outperforming the sector as a whole this year.
Avnet (AVT - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 71.5%.
The consensus estimate for Avnet's current year EPS has increased 11.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, GlobalFoundries Inc. belongs to the Electronics - Semiconductors industry, which includes 50 individual stocks and currently sits at #41 in the Zacks Industry Rank. Stocks in this group have gained about 46% so far this year, so GFS is performing better this group in terms of year-to-date returns.
On the other hand, Avnet belongs to the Electronics - Parts Distribution industry. This 4-stock industry is currently ranked #23. The industry has moved +50.4% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on GlobalFoundries Inc. and Avnet as they attempt to continue their solid performance.
GlobalFoundries is expanding into higher-value semiconductor technologies, including silicon photonics, AI infrastructure, and automotive applications. Communications Infrastructure and Data Center revenue grew 32%, while Automotive revenue increased 24%, improving the company's revenue mix. Management expects silicon photonics to become a $2 billion revenue opportunity by 2030 while expanding higher-margin Technology Services.
July 01, 2026 07:00 ET | Source: GlobalFoundries Inc.
MALTA, N.Y., July 01, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (NASDAQ: GFS) today announced that it will host a conference call on Wednesday, August 5, 2026, at 8:30 a.m. ET following the release of the company’s second quarter 2026 financial results.
Conference Call and Webcast Information
The company will host a conference call with the financial community on Wednesday, August 5, 2026, at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here.
The company’s financial results and a webcast of the conference call will be available on GlobalFoundries’ Investor Relations website at https://investors.gf.com.
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.
Key Takeaways GlobalFoundries is expanding silicon photonics and SiGe capacity amid strong AI and data center demand.UMC is seeing stronger specialty technology demand while advancing 12-nanometer work with Intel.Both companies expect higher 2026 sales and earnings as foundry demand continues to improve. The global semiconductor foundry industry continues to benefit from rising demand for chips used in artificial intelligence, automotive electronics, industrial automation and connected devices. As chipmakers increasingly outsource manufacturing, foundries with advanced technologies, diverse customer bases and expanding production capacity are well positioned to capture long-term growth.
Against this backdrop, GLOBALFOUNDRIES Inc. (GFS - Free Report) and United Microelectronics Corporation (UMC - Free Report) stand out as two prominent players. While GlobalFoundries focuses on specialized process technologies and strategic manufacturing partnerships, UMC leverages its mature-node expertise and cost-efficient operations to serve a broad range of customers. Which semiconductor foundry stock offers the better investment opportunity today? Let's compare the two.
The Case for GFSGlobalFoundries is strengthening its long-term growth profile by capitalizing on rising demand from artificial intelligence and data center applications. The company reported robust double-digit growth in its Communications Infrastructure & Data Center and Automotive businesses during the first quarter, while highlighting strong momentum in silicon photonics and silicon-germanium (SiGe) technologies. Management noted that demand for its SiGe solutions has exceeded available capacity well into 2027, prompting capacity expansion. The company also expects its silicon photonics revenues to roughly double in 2026 and target a run rate exceeding $1 billion by the end of 2028, supported by increasing customer wins and new optical networking products.
Another positive is GlobalFoundries' improving profitability and expanding customer relationships. The company posted a record first-quarter gross margin of about 29%, up more than five percentage points year over year, reflecting a richer product mix, cost improvements and contributions from higher-margin technology services. Design wins climbed 50% from the prior-year period, while strategic partnerships with companies such as Renesas and Apple reinforce its position in automotive, industrial and U.S.-based semiconductor manufacturing. Management also emphasized that its diversified manufacturing footprint across the United States, Germany and Singapore is attracting customers seeking resilient supply chains amid ongoing geopolitical uncertainty.
Despite these strengths, GlobalFoundries continues to face headwinds in its Smart Mobile Devices business, which remains the largest revenue contributor. Management expects the segment to decline at a high-single-digit rate in 2026 as the broader smartphone market weakens, although it believes the business will outperform overall industry trends. The company also warned that geopolitical disruptions could raise supply-chain costs, with additional spending on critical materials expected to weigh on margins through the remainder of the year. These challenges suggest that sustained growth in AI, automotive and communications markets will be essential to offset weakness in mobile demand.
The Case for UMCUnited Microelectronics is benefiting from improving demand across its mature-node foundry business, supported by rising utilization and strong momentum in specialty technologies. During the first quarter, wafer shipments increased sequentially, lifting utilization to 79%, while 22-nanometer revenues reached another record and accounted for 14% of total sales. Management expects more than 50 customers to complete tape-outs on its 22-nanometer platform by the end of 2026, spanning applications such as display driver ICs, networking chips and microcontrollers. Looking ahead, UMC guided for high-single-digit shipment growth and low-single-digit ASP improvement in the second quarter, reflecting healthy demand across communications, consumer, industrial and AI-related markets.
UMC is also investing to expand its long-term growth opportunities beyond traditional mature-node manufacturing. The company continues to advance its 12-nanometer collaboration with Intel, which is expected to provide customers with U.S.-based manufacturing and pave the way for commercial production in 2027. At the same time, management highlighted growing traction in emerging businesses such as silicon photonics and advanced packaging, with more than 10 customer engagements and over 35 expected tape-outs in 2026. These initiatives, combined with disciplined pricing actions planned for the second half of the year and a strategy focused on higher-value specialty technologies, should strengthen UMC's competitive position over time.
On the downside, UMC's profitability continues to face cost pressures despite improving demand. Management cautioned that higher depreciation from the Singapore fab expansion, along with rising raw material, energy and logistics costs, is expected to offset much of the benefit from stronger utilization in 2026. While the company plans to implement wafer price increases in the second half, executives acknowledged that margin expansion is likely to remain constrained until depreciation expenses begin to ease, making sustained earnings growth dependent on continued demand recovery and successful execution of its higher-value technology roadmap.
How Does the Zacks Consensus Estimate Compare for GFS & UMC?The Zacks Consensus Estimate for GFS’ 2026 sales and earnings per share implies a 7.3% and 9.9%, respectively, year-over-year increase. Moreover, in the past 60 days, earnings estimates have witnessed upward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UMC’s 2026 sales and EPS implies year-over-year growth of 10.9% and 32.1%, respectively. Earnings estimates for 2026 have increased in the past 60 days.
Image Source: Zacks Investment Research
Price Performance & ValuationGFS stock has gained 140.2% in the past six months compared with its sector’s growth of 49.5%. Conversely, UMC’s shares have surged 247.9% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
GFS is trading at a forward 12-month price-to-earnings ratio of 48.92X, above its median of 32.37X over the last year. UMC’s forward earnings multiple sits at 36.23X, above its median of 18.79X over the same time frame.
P/E (F12M)
Image Source: Zacks Investment Research
Which Stock to Buy Now?Both companies are well positioned to benefit from long-term semiconductor demand, but UMC appears to have the stronger investment case at this stage. The company is seeing broad-based improvement across core businesses, healthy momentum in the specialty technology portfolio and encouraging progress in emerging areas such as silicon photonics, advanced packaging and its collaboration with Intel.
In addition, analysts have become increasingly optimistic about UMC's earnings outlook, while it is expected to deliver faster growth than GlobalFoundries. Although both stocks trade at premium valuations after strong rallies, UMC's stronger earnings trajectory, improving demand environment and expanding technology roadmap give it an edge. This makes it the more compelling semiconductor foundry stock to buy now.
UMC currently has a Zacks Rank #2 (Buy), whereas GFS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Monday, President Donald Trump signed two executive orders that placed quantum computing at the center of U.S. economic and national security policy.
The first, titled Ushering in the Next Frontier of Quantum Innovation, directs federal agencies to deliver a scientifically relevant quantum computer to the Department of Energy by 2028 and establishes the Quantum Computer for Application Development and Discovery Science initiative (QC-ADDS) as the vehicle to get there.
The second order, focused on cryptographic security, accelerates the government's deadline for migrating all crucial federal infrastructure to post-quantum cryptography (PQC) standards. This is meant to prevent cyberattacks by more-powerful quantum technology that will render current encryption standards obsolete.
These orders didn't arrive in isolation. In May, the Trump administration announced $2 billion in CHIPS Act grants to nine quantum companies -- the largest single quantum research and development commitment in U.S. history -- with the government taking equity stakes in return.
There is already extensive coverage of quantum computing stocks due to this wave of government investment. Instead, three publicly traded companies stand out to me. They're not pure quantum plays, but they're positioned where the government's money, mandate, and timeline intersect.
At work in a data center. Image source: Getty Images.
1. IBM International Business Machines (IBM 1.30%) received $1 billion in proposed CHIPS Act funding -- roughly half the entire quantum package -- to build Anderon, the nation's first pure-play quantum chip foundry, in Albany, New York. IBM matched that dollar for dollar with $1 billion of its own cash, and on June 2, the company committed more than $10 billion in total quantum investment over the next five years.
Its road map targets a fault-tolerant quantum computer by 2029, three years ahead of the government's broader national target.
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The company's stock jumped 12.4% on the day of the grant announcement and has held most of that gain. My investment case here is not that IBM becomes a pure quantum stock -- it generates the majority of its revenue from cloud infrastructure, consulting, and software.
Instead, it's because quantum technology gives IBM's platform a durable technical lead in the enterprise market precisely when government mandates are forcing all regulated institutions in the country to rethink their computing and security architecture. Anderon is also structured as a stand-alone foundry that will serve competing quantum hardware vendors, which means IBM is building both the cars and the roads.
2. GlobalFoundries GlobalFoundries (GFS +3.76%) is the infrastructure play that almost nobody discusses when the quantum conversation starts. The semiconductor manufacturer signed a $375 million CHIPS Act letter of intent to launch a dedicated Quantum Technology Solutions division -- a foundry operation designed to manufacture chips for every major qubit architecture. Alphabet, Microsoft, and Nvidia all publicly endorsed the initiative at its launch, which tells you something about which companies need the manufacturing capacity.
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GlobalFoundries is a pick-and-shovel play on quantum computing. As competing architectures emerge, it can supply components regardless of which technology wins.
The company has already built dedicated manufacturing centers in New York State and Vermont, earning support from the U.S. Department of Commerce, which took about a 1% equity stake. While the stock has rallied since the quantum funding announcement, it still trades at a far more reasonable valuation than many pre-revenue quantum pure plays.
3. Palo Alto Networks The second executive order President Trump signed on Monday is the one that most investors haven't priced in yet: the directive mandating that all crucial federal infrastructure and high-value systems migrate to PQC by 2030 and 2031. This is not an ambition -- it is a procurement mandate that flows directly to vendors who have commercial PQC products deployed today.
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Palo Alto Networks (PANW +3.53%) launched its Quantum-Safe Security in January 2026, making it generally available to enterprise customers. The PQC market is projected to grow from $420 million in 2025 to $2.84 billion by 2030, with a compound annual growth rate above 46%, driven by government deadlines like these. Every chief information security officer at a federal agency or regulated financial institution now has a hard compliance date. That date creates a budget line.
Palo Alto Networks is one of only a handful of large-cap cybersecurity companies with commercial PQC products shipping now. The company's shares have continued to grow through the broader 2026 software correction, suggesting the market already recognizes part of this thesis. The executive order is new fuel on a fire that was already burning.
Key Takeaways GlobalFoundries' Q1 gross margin rose 510 bps to 29%, as revenues increased 3% to YoY $1.63B.GFS saw Communications Infrastructure and Data Center revenues jump 32%, helped by a richer AI mix.GlobalFoundries expects silicon photonics revenues to roughly double in 2026 as SiGe demand stays strong. GlobalFoundries Inc. (GFS - Free Report) is starting to show that its AI opportunity is not limited to direct exposure to GPUs or leading-edge logic chips. Instead, the company is benefiting from the broader infrastructure required to support AI, including silicon photonics, silicon germanium, automotive semiconductors, embedded memory and industrial connectivity.
The first quarter of 2026 suggests that strategy is beginning to pay off. While first-quarter revenues increased a modest 3% year over year to $1.63 billion, the more important story was profitability. Gross margin (Non-IFRS) expanded to 29%, up from 23.9% a year earlier, a remarkable 510-basis-point improvement and the largest year-over-year expansion in more than three years. Management now expects another quarter of roughly 28.5% gross margin despite ongoing investments in capacity and technology. The improvement was driven by a richer revenue mix, with Communications Infrastructure and Data Center revenues climbing 32% to $230 million. Management expects silicon photonics revenues to roughly double in 2026 and forecasts high-30% growth for the broader segment.
The margin implications could be meaningful. Management described silicon germanium, another key optical networking, as margin accretive and said demand is strong enough that capacity at its Vermont fab is oversubscribed well into 2027. GlobalFoundries is expanding capacity in silicon photonics, FDX and high-performance SiGe to meet customer demand, but these investments are being targeted toward higher-value technology corridors rather than broad commodity capacity.
GlobalFoundries is also extending its AI exposure into physical AI, including robotics and industrial automation. The company expects Home and Industrial IoT to become a key beneficiary of physical AI beyond 2026, even though that segment declined in the first quarter due to shipment timing and inventory normalization. Its partnership with Inova Semiconductors for a robotics control reference platform supports this longer-term strategy.
At 29% non-IFRS gross margin, GlobalFoundries is close to a key profitability milestone. If silicon photonics continues to scale, automotive remains resilient and Technology Services grows as expected, 30% may not be the ceiling. It may be the beginning of a more profitable phase for the company.
Can GFS Outpace Silicon Photonics Rivals Like TSM & UMC?GlobalFoundries is not alone in targeting the fast-growing silicon photonics market. Among its closest competitors is Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , which is advancing co-packaged optics through its COUPE platform. Leveraging its leadership in advanced process technologies and packaging, TSM is well-positioned to serve hyperscalers and AI chip designers seeking higher-bandwidth interconnect solutions. However, GlobalFoundries differentiates itself with a specialized optical networking portfolio that combines silicon photonics, silicon germanium, packaging, testing and manufacturing services.
United Microelectronics Corporation (UMC - Free Report) is also expanding its presence in silicon photonics. The company recently announced a strategic partnership to develop thin-film lithium niobate photonics for AI infrastructure and plans to launch its first silicon photonics process design kit in 2027. UMC is also evaluating hybrid bonding, TSV and chiplet integration to support future co-packaged optics applications, underscoring the industry's growing focus on AI networking technologies.
GFS’ Stock Price Performance & Valuation TrendShares of GlobalFoundries have surged 133.7% in the past six months, outperforming the Zacks Electronics - Semiconductors industry’s 48.4% growth.
GFS 6-Month Price Performance
Image Source: Zacks Investment Research
GFS stock is currently trading at a premium to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 47.61, as shown in the chart below.
P/E (F12M)
Image Source: Zacks Investment Research
Earnings Estimate Revision of GFSGFS’ earnings estimates for 2026 and 2027 have trended upward in the past 60 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively.
Image Source: Zacks Investment Research
GFS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Multi-year engagement reinforces Infosys' leadership in AI-led managed services for complex, mission-critical IT operations
, /PRNewswire/ -- Infosys (NYSE: INFY), a global leader in AI–first business consulting and technology services, today announced an expanded multi-year collaboration with GlobalFoundries (NASDAQ: GFS) (GF), a leading semiconductor manufacturer, to deliver AI-led managed services across GF's enterprise IT landscape.
Through this collaboration, Infosys will manage GF's end-to-end application, infrastructure, data and service desk operations. GF selected Infosys based on its proven track record as an incumbent technology provider and its deep semiconductor domain expertise. The engagement is designed to elevate GF's IT operations by transitioning from externally supported operations to a true managed services model driven by AI, automation, and continuous optimization.
Vishal Mehra, Chief Information Officer, GF, said, "The renewed collaboration marks a significant step forward in GF's journey to modernize IT operations and achieve higher levels of efficiency, resilience and user experience. As a leading global semiconductor manufacturer, we are committed to advancing our digital transformation to drive greater reliability and value. Collaborating with Infosys will help us equip our teams with next–generation capabilities to accelerate this transformation journey."
Anand Swaminathan, EVP & Global Industry Leader, Communications, Media & Technology, Infosys, said, "By combining our deep domain expertise, AI capabilities and an outcome-based operating model, we will help GF reduce incidents, improve end-user experiences and sustainably lower TCO over the long term. Infosys will unlock AI value at scale to play a central role in driving intelligent operations, helping GF transition from reactive IT management to predictive and autonomous service delivery."
About Infosys
Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY) is a global leader in AI first business consulting and technology services. Over 325,000 of our people work to amplify human potential and create the next opportunity for people, businesses, and communities. As navigators of enterprise transformation, we enable businesses in 63 countries to unlock AI value at scale. With over four decades of experience in managing the systems and workings of global enterprises, we accelerate business transformation through our AI-first value framework, deep domain expertise, and our unique ability to orchestrate innovations from our AI-native partner ecosystem. Infosys is recognised as the fastest growing IT services brand globally, committed to being a well-governed, environmentally sustainable partner for our clients where deep talent expertise, in an inclusive workplace, help them navigate their next.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release concerning our future growth prospects, or our future financial or operating performance, are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid work model, economic uncertainties and geo-political situations, technological disruptions and innovations such as artificial intelligence ("AI"), generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, and cybersecurity matters. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2025. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
Production-ready 3DI technology supports more compact FEMs for advanced 5G devices June 23, 2026 08:49 ET | Source: GlobalFoundries Inc.
MALTA, N.Y., June 23, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced the production readiness of its SLATE™ wafer-to-wafer bonding technology on its industry-leading 9SW radio-frequency silicon-on-insulator (RF-SOI) platform, delivering advanced 3D integration (3DI) for compact, high-performance cellular front-ends. Manufactured at GF’s 300mm facility in Singapore, 9SW SLATE technology is expected to ramp to volume production by the second half of 2027.
GF’s first-generation SLATE technology supports wafer-to-wafer (W2W) bonding, enabling designers to bond two 9SW wafers to stack and integrate large-size field-effect transistors (FETs) in vertical architectures. By folding large FETs across bonded wafers, SLATE technology can reduce overall die size by up to 45%, decreasing RF board space and total design area for space-constrained applications in smart mobile devices, including switches, low-noise amplifiers (LNAs) and antenna tuners.
First introduced in 2023, the 9SW RF-SOI platform is GF’s most advanced RF solution for front-end modules (FEMs), spanning sub-8GHz and FR3 frequency ranges for 5G mobile devices and satellite communications. 9SW, the fourth generation of GF’s XSW technology, delivers a significant reduction in standby currents for longer battery life with a more than 20% enhancement in efficiency through lower on-resistance and off-capacitance (Ron*Coff).
“Deploying SLATE on 9SW represents a significant step forward in RF integration, enabling our customers to design more compact and power-efficient solutions for next-generation 5G devices without compromising RF performance,” said Shankaran Janardhanan, senior vice president of GF’s RF business. “By combining our industry-leading 9SW platform with SLATE advanced packaging technology, we are unlocking new opportunities for innovation across next-generation mobile and wireless applications.”
“GF’s SLATE technology applied to its 9SW platform represents an important advancement in RF front-end integration, enabling designers to overcome traditional scaling and integration challenges,” said Vinod Kariat, corporate vice president of Custom IC and PCB group at Cadence. “Through Cadence’s Virtuoso Studio homogeneous integration, analysis and verification users can unlock SLATE’s 3D integration potential – giving designers the speed and confidence to deliver next-generation 5G front-end modules from concept to silicon.”
GF’s SLATE wafer-to-wafer bonding technology offers a roadmap for heterogeneous 3DI across its many differentiated technologies, including FDX™ FD-SOI, RF-SOI and silicon germanium (SiGe), for even greater system-level capabilities across diverse markets such as data centers, satellite connectivity, IoT and mobile devices.
An integrated process design kit (PDK) is available through the GF Connect portal to help jumpstart the design process. 9SW and 9SW SLATE are available for prototyping through GF’s GlobalShuttle™ multi-project wafer program with shuttles scheduled for the second half of the year.
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.
Forward-looking information
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
Key Takeaways GFS expects silicon photonics revenues to roughly double in 2026 as AI boosts optical interconnect adoption.GFS reported 32% growth in its Communications Infrastructure & Data Center segment in Q1 2026.GFS added photonics customer wins and tape-outs while expanding capacity for silicon germanium solutions. GLOBALFOUNDRIES Inc. (GFS - Free Report) is increasingly positioning silicon photonics as a major growth catalyst, particularly as artificial intelligence (“AI”) drives demand for faster and more efficient data center connectivity. During the first-quarter 2026 earnings call, management highlighted strong momentum in its optical networking business, with silicon photonics emerging as a key contributor to growth.
The company expects silicon photonics revenues to roughly double in 2026 compared with 2025, supported by rising adoption of optical interconnects in AI infrastructure. Demand is being fueled by the industry's shift toward higher-speed networking solutions, where optical technologies are replacing traditional electrical connections to handle massive data flows more efficiently. GFS also reported additional tape-outs and customer wins tied to next-generation co-packaged and near-packaged optics, strengthening its long-term outlook.
Beyond silicon photonics, GlobalFoundries is benefiting from strong demand for its silicon germanium solutions used in optical networking equipment. Management noted that the capacity for these products remains heavily booked, prompting expansion efforts to meet customer requirements.
The Communications Infrastructure & Data Center segment, which includes photonics-related products, grew 32% year over year in the first quarter and is now expected to deliver high-30% growth for full-year 2026. The company's acquisition of Advanced Micro Foundry has further strengthened its photonics capabilities and broadened customer reach.
While smartphone demand remains weak, GlobalFoundries' growing exposure to AI-driven optical networking could help diversify its revenue base and support higher-margin growth. If adoption trends continue, silicon photonics may become one of the company's most important growth engines over the next several years.
How Does GlobalFoundries Stack Up Against Key Silicon Photonics Rivals?GlobalFoundries is not alone in targeting the fast-growing silicon photonics market. Among the closest competitors is Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , which is advancing co-packaged optics solutions through its COUPE platform. Leveraging its leadership in advanced process technologies and packaging, TSM is well-positioned to serve hyperscalers and AI chip designers seeking higher-bandwidth interconnect solutions. However, GlobalFoundries differentiates itself with a specialized optical networking portfolio that combines silicon photonics, silicon germanium (SiGe), packaging, testing and manufacturing services.
Another key competitor is Intel (INTC - Free Report) , which has spent more than a decade developing silicon photonics technologies for data center networking. Intel's expertise in optical transceivers and integrated photonics positions it to benefit from the rapid expansion of AI infrastructure.
Nevertheless, GlobalFoundries is gaining traction through new customer wins, photonics-focused acquisitions and its recently launched SCALE platform for near-packaged and co-packaged optics. Management expects silicon photonics revenues to roughly double in 2026 and exceed a $1 billion annualized run rate by the end of 2028.
GFS’ Stock Price Performance & Valuation TrendShares of GlobalFoundries have surged 126.5% in the past six months, outperforming the Zacks Electronics - Semiconductors’ 51.8% growth.
Price Performance
Image Source: Zacks Investment Research
GFS stock is currently trading at a premium to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 46.86, as shown in the chart below.
P/E (F12M)
Image Source: Zacks Investment Research
Earnings Estimate Revision of GFSGFS’ earnings estimates for 2026 and 2027 have trended upward in the past 60 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively.
Image Source: Zacks Investment Research
GFS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
May 2026 has been a rollercoaster month for companies in the quantum computing industry, as leaders like D-Wave Quantum Inc. NYSE: QBTS, IonQ Inc. NYSE: IONQ, and Rigetti Computing NASDAQ: RGTI fell for much of the month, despite some promising Q1 results, before surging sharply toward month-end.
The swing upwards may be due to a recent announcement that the federal government is interested in providing incentives to a handful of domestic quantum firms. The U.S. Department of Commerce recently signed letters of intent with nine quantum computing companies—including both foundries and broader computing names—to provide more than $2 billion in funding through the CHIPS and Science Act.
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The immediate move upward in share price is to be expected, but investors will want to know what this might mean for the industry over the longer term. A closer look at the three companies above—among the biggest names in quantum and established leaders in the field—may provide more context.
D-Wave: A Big Boost to a Cash Pile That's Already SizableD-Wave is slated to receive $100 million in funding from the Commerce Department as part of the incentives plan. Specifically, this funding will go toward advancements in both annealing and gate-model systems.
D-Wave Quantum Today
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The firm has distinguished itself among quantum companies by taking this dual-focused approach, and an influx of cash may make a big difference in its timeline as it tries to balance technological developments in two areas at once.
Cash has not been a major concern for D-Wave for quite some time, as the company now has a solid history of building up strong cash reserves (and deploying that cash for key acquisitions, among other things). While $100 million will certainly help, the company was not hurting for capital. In this way, it's possible that the federal influx will be less transformative for D-Wave than it might be for a smaller firm or one with more modest reserves. Of course, a boost to D-Wave's defense and government procurement access will also be beneficial.
Rigetti: Cash Influx to Support Scaling, But Challenges RemainRigetti is another company slated to receive $100 million in planned funding. In this case, the company is charged with addressing challenges necessary to develop and scale superconducting architectures.
Rigetti Computing Today
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This could add to Rigetti's strong history as a developer of superconducting quantum systems and could smooth over some of the company's execution consistency issues and scaling concerns.
The cash infusion will likely help Rigetti extend its runway separate from the success of its shares, to build its supply chain access, and, like D-Wave, to boost its integration into various federal and defense programs. As a smaller firm than IonQ, Rigetti may see a larger boost than some other firms targeted for support. Still, challenges to scaling superconducting systems are formidable, and Rigetti still faces an uphill battle compared to established rivals like IBM NYSE: IBM.
IonQ: Indirect Benefits, If AnyAlthough the federal government outlined a list of quantum companies slated to receive funding, IonQ was not included in the initial announcement of May 21. Investors may see this as a slight, given that IonQ is one of the most prominent publicly traded quantum firms. However, with a market capitalization more than double that of D-Wave and nearly triple that of Rigetti, IonQ may be better established than some of its rivals.
IonQ Today
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Further, the federal awards seem to be primarily focused on fabrication and materials engineering, and IonQ's unique trapped-ion approach may rely less on fabrication infrastructure than some other firms, making it a less obvious candidate for funding support.
Regardless of the reason for not being included on the list, IonQ will likely benefit only indirectly from an overall surge in quantum computing stocks. Many of these firms' share prices are still moving largely in tandem, and IonQ already got a big boost following the announcement.
Potential DownsidesThe three firms above could benefit in different ways from federal government support, but none of them will receive nearly as much funding as GlobalFoundries Inc. NASDAQ: GFS and IBM, each slated to receive several times the $100-million incentive above to support foundry activities. Further, with a government stake, there may be concerns about shareholder dilution to wrestle with, which could, in fact, give IonQ an advantage in at least one way.
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Shares of quantum computing companies erupted this past week after Washington revealed an unusually direct bet on the industry. On Thursday, the Department of Commerce said it had signed letters of intent to provide about $2.01 billion in funding from the 2022 CHIPS and Science Act to nine quantum companies. In exchange for the cash, the government will take a minority, non-controlling equity stake in each.
The market wasted no time. Tech veteran International Business Machines (IBM 0.64%), the largest recipient, climbed about 12% on Thursday. And the smaller, more speculative quantum names did far better still.
So what does all this federal money actually mean for investors? The answer depends a great deal on which of these stocks you're discussing.
Image source: Getty Images.
IBM is the steadiest way to play it Start with the company that grabbed the headlines. IBM is in line to receive $1 billion to launch Anderon, a new subsidiary that will build a quantum chip foundry in Albany, New York. The tech giant plans to match that with $1 billion of its own cash, putting the project's total price tag near $2 billion. Note that a second foundry award, $375 million, is slated to go to chipmaker GlobalFoundries (GFS +1.99%).
That is a meaningful vote of confidence in IBM's long-running quantum program.
But quantum barely registers in IBM's financial results today. The company generated $67.5 billion in revenue in 2025 and produced $14.7 billion in free cash flow -- its highest in over a decade. A $1 billion proposed award simply won't move numbers like those anytime soon.
What the money may do is accelerate a roadmap IBM has been chasing for years. On the company's fourth-quarter earnings call in January, CEO Arvind Krishna reiterated that IBM remains on pace to deliver its first large-scale, fault-tolerant quantum computer by 2029.
For now, though, anyone buying IBM is buying a profitable, diversified software and hardware business that happens to hold an early lead in quantum -- not a wager on quantum alone. Further, it's worth noting that the stock trades at a price-to-earnings ratio of about 22 and offers investors a dividend yield of 2.7%, a profile that looks nothing like the rest of this group.
Today's Change
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Current Price
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The smaller names are a different animal The pure-play quantum stocks are where the speculation -- and the risk -- lives.
D-Wave Quantum (QBTS 0.92%), Rigetti Computing (RGTI +3.30%), and Infleqtion (INFQ 1.77%), which only went public in February through a SPAC merger, each is in line for up to $100 million in proposed funding, and each soared more than 30% on Thursday. Together, those three names tacked on close to $5 billion in market value in a single session -- more than 15 times the $300 million in proposed awards they collectively stand to receive.
And the businesses underneath those valuations remain tiny. D-Wave, which calls itself the only company building both annealing and gate-model systems, took in just $2.9 million in revenue in the first quarter of 2026 and lost $18.4 million. Rigetti, maker of a recently launched 108-qubit machine, generated only $7.1 million in revenue for all of 2025 -- down from the prior year -- while posting a net loss of $216 million. To be fair, D-Wave's quarterly revenue was held back by the absence of a one-time system sale that had inflated the year-ago period, and its bookings recently hit a record. Even so, Rigetti carries a market capitalization above $8 billion as of this writing, on about $7 million of 2025 sales.
D-Wave, for its part, shared some optimistic comments about the news.
"We see this as a transformative moment for not just D-Wave, but also for quantum computing and the United States," said CEO Alan Baratz in a press release about the U.S. government's plan to obtain an equity stake in D-Wave and other quantum companies. That may well prove true over time.
But the rally may have gone too far. For starters, these are letters of intent, not finalized deals -- the awards still have to be completed.
Of course, Washington's planned funding is substantial -- and the long-term promise of quantum computing could be enormous. But for now, this remains a high-risk, fast-changing corner of the market, built far more on potential than on profits. Investors drawn in by the surge would be wise to tread carefully -- and to keep any position small.
The quantum computing sector is undergoing a fundamental repricing, but the catalyst is not what most investors assume.
While the U.S. government's recent $2 billion capital injection via the CHIPS and Science Act provides a significant operational runway, the more profound structural shift is happening at the commercial level. The industry has finally crossed the chasm from theoretical lab physics to utility-scale industrial infrastructure, driven by a rapid acceleration in enterprise bookings, the maturation of recurring cloud-based revenue models, and a structural pivot toward high-yield commercial wafer fabrication.
For investors, this marks a critical inflection point. The speculative phase, once defined by academic milestones and prototype demonstrations, is giving way to a new era of tangible enterprise adoption, scalable manufacturing, and defensible business models. This evolution demands a fresh look at the key players who are not just building the future of computing, but are also constructing the commercial and industrial foundation for it today.
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Building the Quantum BackboneThe clearest signal of the industry's maturation is the pivot from bespoke, low-yield research projects to standardized, high-yield commercial fabrication. Two companies exemplify this crucial infrastructure build-out, positioning themselves as the essential picks and shovels of the new quantum economy.
International Business Machines Today
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International Business Machines NYSE: IBM is leveraging its deep manufacturing expertise to anchor the domestic supply chain.
The new Anderon subsidiary, capitalized with $1 billion in federal funding and a matching $1 billion internal investment, is set to become a dedicated 300mm quantum wafer fabrication facility.
The strategic move separates the high-capital-expenditure foundry business from its core operations, allowing IBM to build a foundational manufacturing moat. This provides investors with direct exposure to the sector's long-term industrial potential, backed by IBM's formidable balance sheet and existing profitability.
Similarly, GlobalFoundries NASDAQ: GFS is carving out a critical niche as a multi-platform foundry. Its new Quantum Technology Solutions division, bolstered by a $375 million CHIPS Act grant, is engineered to produce quantum components across multiple modalities, including superconducting, trapped-ion, and photonic systems.
This positions GlobalFoundries not as a bet on a single winning technology but as an indispensable partner for the entire ecosystem. GlobalFoundries is set to capture value regardless of which modality ultimately dominates specific applications, making it a powerful horizontal play on the sector's overall growth.
From Lumpy Hardware to Predictable Cloud RevenueFor the pure-play quantum operators, the business model itself is undergoing a transformation that significantly de-risks their investment profile. The historical reliance on lumpy, unpredictable hardware sales is being replaced by the stable, recurring revenue streams of quantum-as-a-service (QaaS) platforms, which are proving their commercial viability.
D-Wave Quantum Today
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D-Wave Quantum NYSE: QBTS offers a compelling case study.
A superficial look at its Q1 2026 earnings reveals a sharp revenue contraction. A deeper analysis, however, shows this was due to a non-recurring hardware sale in the prior year's quarter.
The real story lies in the bookings for D-Wave Quantum, which surged an astonishing 1,994% to $33.4 million, driven by major enterprise and institutional deals. This demonstrates accelerating demand for its hybrid quantum-classical cloud services, establishing a predictable, high-margin revenue base that is far more valuable than one-off system sales.
This trend is echoed across the sector. Rigetti Computing NASDAQ: RGTI is driving adoption through its Quantum Cloud Services platform, which now provides access to its newly available 108-qubit Cepheus-1 system.
By focusing on cloud access, these operators lower the barrier to entry for enterprise clients, accelerating the discovery of commercial use cases in financial modeling, pharmaceutical research, and logistics optimization.
It’s Not a Winner-Takes-All RaceWhile concerns about a winner-takes-all scenario persist, the sector's diversification across modalities such as superconducting, neutral-atom, and annealing technologies reduces overall risk and fosters resilience.
The field includes various modalities, each with unique strengths:
Superconducting Qubits: Pursued by leaders like IBM and Rigetti Computing, this is one of the most mature technologies for building universal gate-model quantum computers.
Neutral Atoms: Championed by newcomers such as Infleqtion NYSE: INFQ, this approach offers the potential for large qubit counts and strong connectivity, attracting significant attention and capital following its public market debut.
Quantum Annealing: The specialty of D-Wave Quantum, this modality is already delivering commercial value for complex optimization problems today, even as the dual-platform quantum computing company develops its own gate-model systems.
This technological diversity is a sign of a healthy, expanding market. It suggests the future of quantum computing will not be a monolith but a rich ecosystem of specialized solutions tailored to different problems, much like the classical computing world has both central processing units and graphics processing units.
Balancing Near-Term Risk With Long-Term RunwayRigetti Computing Today
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While the long-term outlook appears robust, investors must balance this potential against near-term financial realities. The pure-play operators are currently experiencing significant cash burn and deep margin compression as they invest heavily in research and development.
However, many are fortified with strong balance sheets. Rigetti Computing, for instance, holds approximately $569 million in cash with virtually no debt, providing a multi-year runway to execute its technology roadmap without the immediate threat of shareholder dilution.
For investors building a quantum portfolio, the paths to exposure are becoming clearer.
The infrastructure players, IBM and GlobalFoundries, offer a more conservative approach, grounding their quantum ambitions in profitable, cash-flow-positive legacy businesses.
The pure-play companies, including D-Wave Quantum, Rigetti Computing, and the recently public Infleqtion, present a higher-risk, higher-reward opportunity. Investors with a long-term horizon might consider watching these names closely as they translate technological breakthroughs into recurring enterprise revenue, marking the true beginning of the commercial quantum era.
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• Meta Platforms Inc. currently leads the group in aggregate flow score, supported by strong momentum and institutional order flow activity
• Software, AI, enterprise technology, and cybersecurity participation remains active, led by AppLovin Corporation, ServiceNow Inc., CrowdStrike Holdings, and Spotify Technology
• Aerospace, transportation infrastructure, and industrial participation are represented through Boeing Company, Canadian Pacific Kansas City Limited, and Firefly Aerospace Inc.
• Semiconductor and technology-related ETF exposure continues to attract interest through Direxion Daily Semiconductor Bear 3X Shares, ProShares UltraPro Short QQQ ETF, and GlobalFoundries Inc.
• Crypto and digital asset-related participation is represented through IREN Limited, which is showing positive institutional and retail interest
Interpreting Flow and Momentum Signals
It is important to distinguish between capital inflows and short-term price performance, as flow activity and directional momentum do not always align.
Sector Positioning: Broad Participation Across Markets
The latest sector breakdown reflects diversified participation across several major market groups:
• Social Media, Digital Advertising & Internet Platforms: Meta Platforms Inc., Reddit Inc.
While technology-related equities continue to populate the inflow rankings, the inclusion of aerospace, crypto-related equities, and diversified ETF exposure suggests broader institutional participation across multiple areas of the market.
Implications for Market Participants
From an analytical perspective, current flow trends suggest:
• Sustained activity within social media, AI infrastructure, enterprise software, cybersecurity, and digital advertising-related equities
• Tactical positioning through leveraged semiconductor and Nasdaq-focused ETFs
• Increased participation in aerospace, industrial infrastructure, crypto-related equities, and transportation-related companies
• Continued institutional activity within diversified market ETFs and growth-oriented technology names
When combined with earnings data, economic indicators, and technical analysis, flow data metrics can provide a more comprehensive understanding of market positioning.
Closing Perspective
This material is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Past performance and observed flows are not indicative of future results.
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Following President Donald Trump’s recent announcement of $2.013 billion in federal incentives for quantum companies, Finbold has identified five stocks that stand to benefit the most as of May 29.
These five quantum stocks are based on these tailwinds: government validation, profitability, revenue momentum, and an upcoming Initial Public Offering (IPO).
Profitable Quantum stocks to consider IBM Corporation (NYSE: IBM) is the top quantum stock that received funding from the United States government. With decades of business experience, IBM reported a net income of $1.216 billion on $15.9 billion in revenue.
Over the past 30 days, IBM stock price surged by over 27%, trading around $289 on Friday. As such, the company had a market capitalization of approximately $248.3 billion.
IBM stock 30-day chart. Source: Finbold GlobalFoundries Inc. (Nasdaq: GFS) is a $44.2 billion quantum-focused company that received $375 million from the U.S. government. On the same day, the company launched Quantum Technology Solutions, a dedicated business unit with live customer engagements.
Having registered a revenue of $1.634 billion and $3.8 billion in reserve cash during the first quarter, its stock is well positioned to perform amid the quantum boom. Over the past 30 days, GFS stock price rallied more than 27%, trading at about $79.91 at the time of reporting.
GFS stock 30-day chart. Source: Finbold Revenue momentum bets IonQ, Inc. (Nasdaq: IONQ) could be a credible loss-maker on the list of top quantum stocks to consider. Furthermore, the company reported a revenue of $64.7 million in Q1 2026, representing 755% year-on-year growth.
Notably, IonQ raised its full-year guidance to between $260 million and $270 million. Although the company was not shortlisted for the U.S. government grant, its stock rallied 12% on the day of the announcement.
Over the past four weeks, IONQ stock rallied by over 63%, trading at roughly $68.83 on May 29.
IONQ stock 30-day chart. Source: Finbold Rigetti Computing, Inc. (Nasdaq: RGTI) received $100 million from the U.S. government, thereby securing its position in the quantum computing race. Moreover, its 108-qubit system is live on Amazon Braket and Azure Quantum as of press time.
The company’s Q1 revenue tripled year-on-year from $1.47 million to $4.4 million. With a $590 million cash position, Rigetti stock has the upper hand in the quantum race. Over the past 30 days, RGTI stock rallied by more than 56%, trading at around $25.15 at the time of publication.
RGTI stock 30-day chart. Source: Finbold Government-backed amid IPO Quantinuum Inc. is preparing to list on the NASDAQ exchange on June 4, 2026. The Honeywell-backed company received $100 million from the U.S. government to fast-track its quantum bid.
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Quantum Computing's Commercial Breakout Has ArrivedGlobalFoundries NASDAQ: GFS Chief Financial Officer Sam Franklin said the chipmaker sees a path to significantly higher profitability over the next several years, driven by a mix shift toward faster-growing end markets, technology services, manufacturing productivity and better utilization of its existing footprint.
Speaking at a TD Cowen event hosted by analyst Krish Sankar, Franklin said GlobalFoundries is targeting an exit gross margin of about 30% in 2026, 40% by the end of 2028 and 45% over the longer term. He said the company’s margin plan is tied to investments already made, customer design-win momentum and an expanded ability to serve customers earlier in the design process.
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Margin Targets Rely on Mix, Services and Scale Quantum Stocks Just Got a Lifeline—Who Benefits Most?Franklin said the company’s roughly 10-point margin bridge from 2026 to 2028 is based on four main factors: mix, technology services, manufacturing efficiency and scale. He said mix alone could contribute about five points of margin improvement over the next few years.
Communications infrastructure and data center is one example of the mix shift, Franklin said. The segment grew a little under 30% last year, about 32% in the first quarter and is expected to grow in the high-30% range for the full year. He also pointed to automotive and IoT as important margin contributors.
3 Stocks Trump Could Back Next as USA Rare Earths Revives the Federal Catalyst TradeFranklin said GlobalFoundries is also building its technology services revenue, historically referred to as non-wafer revenue. He cited the company’s acquisition of MIPS and the pending acquisition of Synopsys’ ARC IP business as part of a broader effort to build RISC-V capabilities. Technology services have historically been about 8% to 10% of revenue, were above 13% in the first quarter and are expected to be 12% to 14% over the longer term, he said.
CapEx Increase Tied to Demand Visibility Sankar asked whether the company’s expected $1.3 billion to $1.4 billion in capital spending this year is mainly related to silicon photonics. Franklin said silicon photonics is a major beneficiary, but not the only area receiving investment.
Franklin said net capital spending is expected to be in the range of 15% to 20% of revenue this year, up from 7% to 10% in recent years. He said the increase reflects stronger demand visibility, the ability to expand efficiently within the company’s existing facilities and support from government funding and customer partnerships.
In addition to silicon photonics, Franklin cited demand for FDX solutions and silicon germanium capabilities, including applications in data center transimpedance amplifier drivers. He said the company’s current three-year model does not rely on modular expansion and remains within its longer-term target of net CapEx at about 20% of revenue.
Silicon Photonics and Data Center Growth in Focus Franklin said GlobalFoundries sees two phases of growth in silicon photonics. The first is tied to pluggable optical transceivers, where he said the company has a strong position and a growing customer base following its acquisition of AMF last year. The company is targeting a $1 billion silicon photonics run rate exiting 2028.
The second phase is expected to come from co-packaged optics, with an inflection point in late 2028 into 2029. Franklin said the company has set a target of $2 billion in silicon photonics revenue over the longer term. He said GlobalFoundries recorded two tape-outs on its co-packaged optics solution in the first quarter.
Franklin described GlobalFoundries’ SCALE platform as an ecosystem-based silicon photonics co-packaged advanced light engine solution. He said the company has invested more than $1 billion in R&D and CapEx over roughly a decade to develop its photonics capabilities. He added that GlobalFoundries can manufacture an electrical integrated circuit within its own technology nodes, while also supporting third-party EICs developed on single-digit nanometer nodes.
Franklin said the company is working with several founding members of the OCI MSA and believes its solution exceeds the demand requirements under those principles. He also said GlobalFoundries and TSMC are the only companies with “fully fledged” co-packaged optics solutions taping out in the market today, while adding that he does not expect the market to have a single winner.
Quantum, Satellite and Defense Opportunities Franklin said GlobalFoundries does not have a strong need to pursue single-digit nanometer logic, saying the company’s served available market can nearly double toward the end of the decade and into the 2030s using technologies greater than 10 nanometers. He pointed to automotive, IoT, communications infrastructure, data center and smart mobile as markets where the company’s portfolio fits customer requirements.
On satellite communications, Franklin said low Earth orbit satellite-related revenue is expected to grow from a “standing start” in 2024 to about $100 million in 2025. He said GlobalFoundries is supporting commercial satellite communications customers with RF front-end content and 22FDX solutions for beamforming applications.
Franklin also discussed aerospace and defense, which GlobalFoundries categorizes within IoT. He said the company remains a trusted foundry with a relationship with the U.S. Department of Defense, and noted that first-quarter technology services revenue included healthier mask and reticle-related revenue tied to aerospace and defense applications.
On quantum computing, Franklin called a recently announced $375 million CHIPS R&D grant a strong endorsement of GlobalFoundries’ role in the semiconductor ecosystem and quantum technology. He said the company aims to be a “quantum foundry of choice” with a modality-agnostic platform, using FDX, advanced packaging and quantum process design kits. Franklin said the U.S. government’s approximately 1% equity stake is viewed separately from grant funding and is not expected to include restrictions similar to prior CHIPS Act frameworks.
Capital Returns and Mubadala Ownership Franklin said GlobalFoundries’ long-term plan is not premised on growth in smart mobile devices, though the category remains important. Smart mobile accounted for about 34% of first-quarter revenue, the lowest level in the company’s history, he said, as other end markets have grown faster.
The CFO said the company is moving toward a more systematic capital allocation framework. He said GlobalFoundries plans to return about 50% of free cash after investments to shareholders, including through a newly initiated dividend. He also said the board approved $500 million in share repurchases at the start of the year, of which about $400 million has been completed.
Addressing Mubadala’s ownership, Franklin said management supports more float coming into the stock. He noted that Mubadala recently sold shares and said the activity reflects investor appetite for GlobalFoundries’ strategy. He described Mubadala as a “thoughtful and patient” majority shareholder and said the company continues to view its support positively.
About GlobalFoundries NASDAQ: GFSGlobalFoundries, 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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Should You Invest $1,000 in GlobalFoundries Right Now?Before you consider GlobalFoundries, you'll want to hear this.
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The artificial intelligence (AI) playbook is familiar by now: Build a bigger GPU cluster. Add more Blackwell chips. Throw more electricity at the problem. If the chips get hot, build the data center next to a river. If the bandwidth runs out, lay more copper.
That is how Amazon, Alphabet, Microsoft, and Meta Platforms are solving AI in 2026. And it works -- until it runs into physics.
One company looked at that same problem and arrived at a different answer. GlobalFoundries (GFS +1.99%) is betting that the real bottleneck in AI infrastructure is not compute power. It is the wire connecting the chips and replacing that wire with light.
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The copper wall nobody talks about Inside every AI data center, thousands of chips must share information at enormous speeds. Right now, most of that communication travels through copper, which is running out of room. It generates heat, loses signal over distance, and consumes power in ways that become painful at scale. Every time an AI model gets bigger, the copper problem gets worse.
The industry has known this for years. The solution has a name: co-packaged optics (CPO). The idea is to move optical transceivers, components that transmit data through light rather than electricity, directly alongside the chip, shrinking the distance data has to travel through copper to almost nothing. The result is faster, cooler, more power-efficient AI infrastructure.
In May 2026, GlobalFoundries announced SCALE -- Silicon photonics Co-packaged Advanced Light Engine solution -- the industry's first platform to meet the Optical Compute Interconnect Multi-Source Agreement specifications for AI scale-up architectures. The platform uses both coarse and dense wavelength-division multiplexing (DWDM) over each optical fiber to push bandwidth density and scalability past what copper can do, and GlobalFoundries has already demonstrated 8λ and 16λ bi-directional DWDM natively on its platform -- a milestone the company describes as fundamental to everything that follows.
Image source: Getty Images.
The part of the stack everyone is chasing Here's the thing about silicon photonics that gets lost in the GPU coverage: It is a manufacturing problem as much as a physics problem. Designing a silicon photonic chip is hard. Building it at scale, with the precision required for optical fiber alignment, in volume, for hyperscale data centers is harder.
GlobalFoundries has spent years developing the process technology to do exactly that. Its silicon photonics platform supports 50 Gbps and 100 Gbps micro-ring modulators, broadband detachable fiber interfaces, and flat insertion loss characteristics that future-proof the platform as wavelength counts scale. In November 2025, the company acquired Advanced Micro Foundry in Singapore, a specialized silicon photonics manufacturer, adding manufacturing assets, intellectual property, and engineering depth that would take years to build from scratch.
That acquisition gave GlobalFoundries production capacity for silicon photonics in Singapore, a geography that matters for supply chain diversification amid elevated U.S.-China semiconductor tensions. The company is building a platform that the hyperscalers need and very few manufacturers can actually deliver.
GlobalFoundries dropped 10% in one day, but I'm not worried GlobalFoundries fell nearly 10% on May 27, dragged down by Mubadala's alleged stock sale. Mubadala is Abu Dhabi's sovereign wealth fund and was formerly the controlling shareholder of GlobalFoundries. Despite the stock drop, the long-term Motley Fool framing wins here.
GlobalFoundries' story is intact. The SCALE announcement sent the stock up 12% in a single session just weeks ago. A Q1 2026 earnings beat followed. Silicon photonics revenue is expected to nearly double again in 2026, with over 500 design wins logged in 2025 and momentum building. A sell-off does not change those facts.
Also, the U.S. government is backing GlobalFoundries with a proposed $375 million award to help build out domestic quantum manufacturing infrastructure.
Every major hyperscaler is asking how to train bigger models faster. GlobalFoundries is asking a different question: How do you move data between chips without the infrastructure melting?
Co-packaged optics is the answer. The company building the manufacturing platform to deliver it at scale is still, on most days, filed under "semiconductor foundry." On days it drops 10% for reasons unrelated to its most important business, that drop becomes an opportunity.
Sivers' laser arrays to support GlobalFoundries' silicon photonics platform and SCALE™ optical engine solutions targeting a $25B Pluggable Optics market by 2030
, /PRNewswire/ -- Sivers Semiconductors AB (STO: SIVE), a global leader in photonics and wireless technologies, today announced a strategic collaboration with GlobalFoundries (NASDAQ: GFS) (GF), to develop advanced silicon photonics solutions for the high-growth AI infrastructure market.
Sivers Semiconductors' laser arrays will be integrated into reference designs built on GF's silicon photonics platform. The collaboration supports a range of optical connectivity architectures, including co-packaged optics (CPO), linear pluggable optics (LPO), and other emerging data center interconnect solutions. Sivers' laser arrays will also be available in GF's Silicon Photonics Co-packaged Advanced Light Engine (SCALE™) platform for next-generation optical sub-assemblies and light engine architectures. GF's SCALE CPO solution combines integrated photonic devices, coarse and dense wavelength-division multiplexing (CWDM, DWDM) and advanced packaging enablement to improve bandwidth density and system scalability.
"The rapid expansion of AI workloads and hyperscale data center architectures demand advanced photonics technologies that deliver higher bandwidth, improved energy efficiency, and scalable optical connectivity," said Raymond Biagan, CRO at Sivers Semiconductors. "Our collaboration with GlobalFoundries positions both companies at the leading edge of silicon photonics innovation."
"GlobalFoundries continues to see strong momentum for silicon photonics solutions as AI data center architectures evolve toward higher bandwidth density and improved power efficiency," said Vikas Gupta, Senior Fellow, Silicon Photonics Product Line at GlobalFoundries. "Pairing Sivers Semiconductors' laser array technology with our silicon photonics and SCALE CPO platforms provides our customers with advanced, scalable optical engine solutions for high-bandwidth co-packaged optics and optical interconnects."
For more information, please visit https://www.sivers-semiconductors.com/.
About Sivers Semiconductors
Sivers Semiconductors is a critical enabler of a greener data economy with energy-efficient photonics & wireless solutions. Our differentiated high-precision laser and RF beamformer technologies help our customers in key markets such as AI Datacenters, SATCOM, Defense and Telecom solve essential performance challenges while enabling a much greener footprint. For additional information, please visit us at: www.sivers-semiconductors.com. (SIVE.ST)
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF's talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.
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Northern Trust (Nasdaq: NTRS) today announced changes within its Asset Servicing business, effective 1 June 2026, aligning leadership across the business and positioning it for long-term growth.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260602949046/en/
Nick Gilbert has been appointed head of Asset Servicing, Europe, Middle East and Africa (EMEA), a newly expanded role with responsibility for both asset owners and asset managers, aligning the EMEA region’s structure with Northern Trust’s model in North America and Asia-Pacific.
Nick Gilbert has been appointed head of Asset Servicing, Europe, Middle East and Africa (EMEA), a newly expanded role with responsibility for both asset owners and asset managers, aligning the EMEA region’s structure with Northern Trust’s model in North America and Asia-Pacific. Gilbert brings more than 20 years of experience across operations, strategy and transformation, and most recently led Global Fund Services (GFS) in the region.
As part of these changes and following the planned retirement of James Wright, head of Asset Owners, EMEA at the end of 2026, Wright’s responsibilities will transition to two senior leaders. Kimberly Evans has been appointed to the newly created role of head of Enterprise Strategic Relationships where she will focus on bringing together Northern Trust’s full capabilities to deliver integrated solutions for sophisticated, high-value prospect, client, and vendor relationships globally. Evans most recently served as Northern Trust’s head of Corporate Sustainability, Inclusion and Social Impact and previously led our Private Capital (Trades, Portfolio) Fund Services and Governmental & Sovereign Wealth Pension and Treasury Fund businesses in North America.
Ian Hamilton has been appointed head of Asset Owners, EMEA, in an expanded role. Hamilton brings nearly a decade of experience at Northern Trust servicing asset owners and most recently led Asset Owners Europe, where he contributed to growth across pensions, fiduciary managers and sovereign entities. With experience spanning over 25 years, he also brings institutional client experience from previous roles in the industry.
“These appointments build on our strong leadership while enhancing alignment across the organisation,” said Clive Bellows, co-president, Asset Servicing and president for Europe, the Middle East and Africa (EMEA) at Northern Trust. “By bringing together deep expertise, we are strengthening how we serve clients and helping them navigate an increasingly complex market environment.”
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2026, Northern Trust had assets under custody/administration of US$18.6 trillion, and assets under management of US$1.8 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260602949046/en/
Combines GF's Physical AI portfolio with MIPS' RISC-V and software-to-silicon expertise to accelerate custom, software-first products for automotive, industrial and agentic edge platforms June 02, 2026 08:30 ET | Source: GlobalFoundries Inc.
MALTA, N.Y., June 02, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced the completion of its previously-announced acquisition of Synopsys’ ARC Processor IP Solutions business. Combined with MIPS, by GF, the acquisition establishes GF as a technology partner offering customers a software-to-silicon capability purpose built for Physical AI. Synopsys retains and continues to expand its broad portfolio of interface and foundation IP, while GF assumes ownership and stewardship of the ARC processor IP business. MIPS combined with ARC brings together RISC-V processor IP, software tools, custom design and advanced manufacturing into a single offering, while also expanding GF’s engineering depth with world-class processor and AI talent to accelerate innovation.
“Physical AI is driving tighter integration of compute, software and process technology and customers need a partner who can support them across all three together,” said Sameer Wasson, CEO of MIPS, by GF. “With MIPS and ARC united, GF delivers the software, IP and custom silicon capabilities our customers need to build differentiated, application-specific solutions across automotive, industrial robotics and embedded systems, enabling us to operate as a holistic technology partner and engage throughout the design cycle.”
Agentic AI is rapidly extending beyond the data center into the physical world, driving new physical AI and autonomous platforms across automotive radar and advanced driver-assistance systems to industrial robotics, smart factories and the next generation of IoT devices. These systems must now sense, think, act and communicate in real time under tight power and latency constraints, making differentiated silicon spanning compute, AI acceleration, sensing and connectivity, critical to performance and adoption.
“As automotive and industrial systems become increasingly real-time and AI-driven, we need a technology partner that can bring together standards-based IP and optimized silicon design at scale, with the supply resilience our industry now requires,” said Thomas Schneid, VP of Automotive Software and Ecosystem, Infineon. “GlobalFoundries' combination of MIPS and ARC processor IP with its manufacturing scale provides companies strong end-to-end foundation to build differentiated, power-efficient solutions for next-generation intelligent systems.”
With the transaction complete, the ARC processor IP business becomes part of GF's expanding Physical AI portfolio within MIPS. Together, MIPS and ARC form a world-class RISC-V processor IP suite spanning high-performance, mid-range and ultra-low-power compute and AI cores, backed by more than 150 patents and a global ecosystem of over 300 IP customers. The acquired portfolio also includes the application-specific instruction set (ASIP) processor tools, ASIP Designer and ASIP Programmer, empowering customers to design and program custom processors tailored to their specific workloads. Paired with GF's design enablement, custom silicon capabilities, advanced software tools and global manufacturing footprint, customers gain a single partner from architecture to silicon, enabling early engagement, differentiated product development and faster time-to-market.
GF is working closely with Synopsys to ensure a smooth transition for employees, customers and partners. For more information about MIPS ARC processor solutions, visit mips.com/arc.
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit gf.com.
About MIPS
MIPS, by GlobalFoundries, is a leading provider of RISC-V IP, software and custom ASSP for physical AI platforms. With over 40 years of history in computing innovation and mission critical platforms, MIPS is uniquely positioned to advance the adoption of Physical AI in transportation, robotics, and other embedded markets. MIPS technology is based on the open RISC-V instruction set architecture and uses virtual platforms to enable a modular, standards-based approach to workload-focused solutions. For more information visit mips.com.
Forward-looking information
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
Partnership paves the way to pair AI-enabled semiconductor design with GF's U.S. manufacturing platform to bridge the gap from research to prototype for next-generation computing initiatives June 03, 2026 08:30 ET | Source: GlobalFoundries Inc.
MALTA, N.Y., June 03, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) today announced a strategic partnership with the U.S. Department of Energy's Genesis Mission, the department's initiative to accelerate scientific discovery through artificial intelligence and advanced computing.
Through the agreement, GF will open its U.S. manufacturing platform and design enablement resources to Genesis Mission researchers — giving the nation's National Laboratories, universities, industry partners and startups a direct path from AI-enabled chip design to working prototype silicon. GF Labs, the company's frontier research and development organization, will lead collaboration with the Genesis Mission.
Progress in AI and advanced computing depends on more than algorithms and ideas; it depends on the ability to turn them into devices. As a semiconductor manufacturing engine accelerating America's technology leadership, GF brings the manufacturing capacity and design enablement that connect three communities — the National Labs, universities and industry — around a shared path from concept to silicon.
"American science is generating extraordinary ideas in AI and advanced computing. What's been missing is the bridge from lab to fab," said Tom Caulfield, executive chairman of GlobalFoundries. "By bringing our U.S. manufacturing platform, our PDKs and our multi-project wafer program to the Genesis Mission, we can give researchers a real path from concept to working silicon — and help the National Labs, universities and industry pull in the same direction."
Areas of collaboration
Working through GF Labs, the partnership contemplates cooperation in several areas of mutual interest, including:
AI-enabled semiconductor designAccess to GF technology platforms, including process design kits, device models and design enablement resources for Genesis Mission-supported research teams.Prototype fabrication through GF's multi-project wafer program, giving researchers a manufacturable route from design to silicon.Support for the translation of research outputs into functional prototypes and pre-commercial designs.Advancement of next-generation technologies, including silicon photonics for data centers and quantum computing for quantum-systems discovery.
About the Genesis Mission
The Genesis Mission is a U.S. Department of Energy initiative, led by the Under Secretary for Science, to accelerate scientific discovery through artificial intelligence and advanced computing. Industry partners contribute technical expertise, capabilities and infrastructure to advance the mission's objectives in partnership with the national laboratories and the academic research community.
Key Takeaways GFS completed Synopsys' ARC Processor IP acquisition, expanding its Physical AI portfolio.GFS combines ARC and MIPS to broaden RISC-V IP across performance and power needs.GlobalFoundries adds design tools, patents and AI talent to support custom intelligent systems. GLOBALFOUNDRIES Inc. (GFS - Free Report) has completed the acquisition of Synopsys’ ARC Processor IP Solutions business, a move that expands its presence in the growing Physical AI market. The transaction combines ARC’s processor intellectual property portfolio with MIPS, GlobalFoundries’ recently acquired processor IP business, creating a broader platform that spans processor design, software tools, custom bb development and manufacturing.
The deal comes as artificial intelligence workloads increasingly move beyond data centers into real-world applications such as advanced driver-assistance systems, industrial robotics, smart factories and connected devices. These applications require chips that can process data in real time while operating within strict power and latency limits, increasing the need for specialized semiconductor solutions.
By bringing together MIPS and ARC, GlobalFoundries gains a wider range of RISC-V processor IP covering high-performance, mid-range and ultra-low-power computing applications. The acquisition also adds application-specific instruction set processor tools, enabling customers to develop processors tailored to specific workloads and use cases. The combined portfolio includes more than 150 patents and serves a global ecosystem of over 300 IP customers, strengthening GlobalFoundries’ position in processor IP.
The transaction strengthens GlobalFoundries’ ability to participate earlier in the semiconductor design cycle rather than serving solely as a manufacturing partner. The company can now offer processor IP, software development tools, custom chip design support and manufacturing services through a more integrated software-to-silicon model. The acquisition also expands the company’s engineering capabilities with additional processor and AI talent.
The expanded portfolio is particularly relevant for automotive and industrial markets, where demand is rising for AI-enabled systems that require greater computing efficiency and reliability. As Physical AI adoption grows, the acquisition positions GlobalFoundries to address a broader portion of the semiconductor value chain while supporting customers developing application-specific intelligent systems.
GlobalFoundries’ Competitive LandscapeGlobalFoundries competes with KLA Corporation (KLAC - Free Report) and United Microelectronics Corporation (UMC - Free Report) across different segments of the semiconductor industry.
KLA benefits from rising demand for process control, inspection and metrology solutions as chip designs become more complex. Growing investments in advanced packaging, high-bandwidth memory and leading-edge semiconductor manufacturing continue to support demand for KLA’s portfolio. Increasing process control intensity across semiconductor production also remains a key growth driver.
UMC focuses primarily on mature-node semiconductor manufacturing and serves customers across automotive, industrial and communications markets. The company benefits from demand for specialty technologies and long-standing relationships with customers seeking cost-effective manufacturing solutions.
GlobalFoundries differentiates itself through its focus on essential semiconductor technologies, including RF, connectivity, power management and silicon photonics solutions. The addition of ARC processor IP capabilities further expands the company’s ability to support Physical AI applications through a combination of processor technology, custom silicon development and manufacturing expertise.
Overall, GlobalFoundries, KLA and UMC are positioned to benefit from growing semiconductor demand, though each company participates in different parts of the semiconductor value chain, creating distinct growth opportunities across manufacturing, process control and specialty technologies.
GFS’s Stock Price Performance & Valuation TrendShares of GlobalFoundries have increased 125.1% in the past six months, outperforming the Zacks Electronics - Semiconductors’ 46.6% rise.
Image Source: Zacks Investment Research
GFS stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 38.44, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of GFSGFS’ earnings estimates for 2026 and 2027 have trended upward in the past 30 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively.
Image Source: Zacks Investment Research
GFS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GLOBALFOUNDRIES jumps 59% in three months as AI, automotive and silicon photonics demand accelerate, but valuation and market risks may warrant patience.
First end-to-end European chip manufacturing flow proven for aerospace, defense, IoT, consumer electronics and critical infrastructure
DRESDEN, Germany & DELFT, Netherlands--(BUSINESS WIRE)--GlobalFoundries (GF) and Qualinx today announced the successful completion of the first fully European-based, end-to-end semiconductor manufacturing flow at GlobalFoundries’ Dresden fab on its FDX technology. The milestone demonstrates that security-critical chips for aerospace, defense and critical infrastructure can be designed, manufactured and delivered entirely within Europe.
"This first secure product demonstrates that a fully European manufacturing path – from mask services to wafer production – is already a reality today,” said Qualinx CEO Tom Trill.
Share In this partnership, Qualinx served as the launch customer with a sophisticated GNSS SoC design for secure Positioning, Navigation and Timing (PNT) applications. The QLX3xx design targets sovereign GNSS-based PNT solutions for aerospace, defense and critical infrastructures—such as resilient timing and synchronization networks and highly integrated, ultra-low-power GNSS receivers at the connected edge.
GF and Qualinx Set a Benchmark for GF’s European Sovereign Manufacturing co-funded by the European Chips Act, GF’s Dresden fab is establishing its European sovereign manufacturing flow, consolidating every step of the production process — from design intake and mask services to wafer manufacturing — within the European Union. No sensitive design data or physical materials leave Europe, meeting the strict regulatory and security requirements of European governments, defense agencies, system integrators and critical infrastructure operators.
“We are demonstrating that Europe can rely on a secure, end-to-end semiconductor manufacturing flow that meets the highest requirements of aerospace and defense,” said Dr. Manfred Horstmann, Senior Vice President and General Manager at GlobalFoundries. “Our partnership with Qualinx marks the first operational milestone: it shows that complex, security-relevant ASIC designs for aerospace, defense, and critical infrastructure can already be industrialized today using a fully European, trusted manufacturing path.”
“This first secure product demonstrates that a fully European manufacturing path – from mask services to wafer production – is already a reality today,” said Tom Trill, CEO of Qualinx. “Together with GlobalFoundries, we’ve optimized our Digital RF technology on GF’s FDX with a secure end-to-end flow, culminating in the launch of our ultra-low-power reconfigurable GNSS SoC and Analog Front End. This milestone underscores our ability to deliver trusted, energy-efficient solutions while maintaining full control over IP, data and the supply chain within Europe.”
Roadmap: Scaling European Sovereign Manufacturing. The tape‑out realized with Qualinx represents the first operational milestone on the path toward a fully automated trusted European flow, which GF aims to establish in Dresden by the end of 2026. Starting in 2027, aerospace and defense, as well as critical infrastructure customers, will be able to use this automated flow as part of regular foundry engagements, including the integration of European IP partners, mask houses and OSAT service providers to ensure a consistent, European-anchored value chain.
Already today, a number of European system and module manufacturers from aerospace and defense, as well as operators of critical infrastructure, are in discussions with GF to map upcoming product generations onto GF’s sovereign manufacturing flow. The successful start with Qualinx serves as a strong proof point and reduces both technical and regulatory risks for subsequent programs.
To further strengthen its European sovereign manufacturing flow, GF is also working with leading European connectivity and cloud providers to secure data flows across the entire semiconductor value chain. In a joint project with Deutsche Telekom, GF is assessing how production-related data from design and tape-out through manufacturing, test and quality can be processed, transported and stored entirely within Europe on European networks, cloud infrastructures and data centers. The resulting practices in secure data routing, encryption and access management for highly sensitive A&D and critical infrastructure workloads will feed directly into the scaling of GF’s European sovereign manufacturing model.
About GlobalFoundries
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data centers, smart mobile devices, the Internet of Things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.
About Qualinx
Qualinx is a European deep-tech semiconductor company redefining ultra-low-power connectivity for the connected edge. Its proprietary Digital Radio Frequency technology implements traditional analog receive-chain functions in digital hardware building blocks, powering GNSS, PNT and PVT chipsets and modules that deliver secure, scalable and reconfigurable tracking solutions for wearables, consumer electronics, automotive, fleet, pet, and asset tracking applications.
Founded in 2015 and headquartered in Delft, the Netherlands, Qualinx delivers next-generation Digital RF semiconductors designed for real-world deployment and long device lifecycles. Follow Qualinx on LinkedIn or learn more at https://www.qualinx.io.
For reasons of readability, the masculine form is used in this press release. Corresponding terms are intended to apply equally to all genders.
Key Takeaways GFS is expanding higher-margin businesses, including silicon photonics, SiGe and technology services.Communications Infrastructure & Data Center revenues rose 32% year over year in the first quarter.GFS posted a record first-quarter gross margin of 29%, up 510 basis points year over year. GLOBALFOUNDRIES Inc. (GFS - Free Report) is increasingly shifting its business toward higher-margin segments, a strategy that appears poised to support further earnings growth in the coming years. During the first-quarter 2026 earnings call, management highlighted strong momentum in silicon photonics, high-performance silicon germanium (SiGe), and technology services, all of which carry margins above the company average.
A key growth driver is the Communications Infrastructure & Data Center business, which posted 32% year-over-year revenue growth in the first quarter. Demand for silicon photonics solutions used in AI data centers and optical networking remains robust, while GF’s SiGe capacity is already oversubscribed through 2027. Management noted that these offerings are meaningfully margin accretive and are expected to contribute substantially to long-term revenue and profit expansion.
Another emerging earnings lever is Technology Services, which includes intellectual property, software, licensing and engineering services. This segment represented 13% of first-quarter revenues, exceeding expectations. The integration of MIPS and the pending acquisition of Synopsys’ ARC IP business are expected to increase the contribution from software and licensing revenues, which typically generate higher margins than traditional wafer manufacturing. Management expects Technology Services to become a larger share of revenue over time and views it as a durable source of high-quality growth.
The benefits of this mix shift are already visible. GFS delivered a first-quarter gross margin of 29%, up 510 basis points year over year, marking its strongest first-quarter margin performance on record. Management attributed much of the improvement to growth in higher-value businesses and expects continued profitability gains as these segments expand.
Given the accelerating demand for AI-related networking solutions and the growing contribution from technology services, higher-margin businesses appear well-positioned to fuel GFS’ next phase of earnings growth.
How Do Competitors Compare in High-Margin Growth Markets?GLOBALFOUNDRIES is not alone in pursuing higher-margin opportunities tied to AI infrastructure and advanced connectivity. A notable competitor is United Microelectronics Corporation (UMC - Free Report) , which operates in the mature-node foundry market and serves customers across communications, automotive and industrial applications. While UMC benefits from a diversified customer base, GFS has been more aggressive in expanding into silicon photonics, high-performance SiGe and AI-driven networking solutions, areas that offer stronger long-term margin potential.
Another relevant competitor is Semtech Corporation (SMTC - Free Report) . Semtech has significant exposure to high-speed optical connectivity and data-center infrastructure through its networking and signal-integrity products. However, GFS participates earlier in the semiconductor value chain by manufacturing key silicon photonics and optical-networking components. As AI data-center investments accelerate, GFS’ growing mix of silicon photonics, technology services and licensing revenues could support stronger margin expansion and earnings growth relative to many industry peers.
GFS’ Stock Price Performance & Valuation TrendShares of GlobalFoundries have surged 88.2% in the past six months, outperforming the Zacks Electronics - Semiconductors’ 30.3% growth.
Price Performance
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GFS stock is currently trading at a premium to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 43.61, as shown in the chart below.
P/E (F12M)
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Earnings Estimate Revision of GFSGFS’ earnings estimates for 2026 and 2027 have trended upward in the past 60 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively.
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GFS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
