Washington just handed out $2 billion in quantum manufacturing incentives, and the money landed in some very unexpected places. Five stocks are quietly positioned to capture the fallout, and most investors have no idea they qualify.
The Commerce Department’s CHIPS Research and Development Office has signed nine letters of intent to provide $2.013 billion in federal incentives for domestic quantum, and the money did not fan out evenly. Two foundry awards, $375 million for GlobalFoundries and $1 billion for IBM, alone account for roughly two-thirds of the entire program, each single check dwarfing the largest system-developer award. Every recipient must accept a minority, non-controlling equity stake for the U.S. Department of Commerce as a condition of the funds. Washington is buying the picks and shovels in quantum, and taking paper in return.
1. GlobalFoundries: The Foundry Nobody Filed Under “Quantum” Retail screens for quantum exposure rarely surface GlobalFoundries (NASDAQ:GFS | GFS Price Prediction). They should. GlobalFoundries is a pure-play U.S. contract foundry, and CEO Tim Breen used the second-quarter call to discuss the launch of Quantum Technology Solutions, a dedicated group built to move the industry “from prototypes to high-volume production” across superconducting, trapped ion, photonic, topological, and spin modalities. That is the whole board, one fab.
The dollar case is stacked. GlobalFoundries has an expected $375 million grant from the Commerce Department to build out domestic quantum manufacturing capacity, layered on top of a separate $300 million letter of intent tied to its Scale silicon photonics platform. Meanwhile, the picks-and-shovels flywheel is already spinning: Communications Infrastructure & Datacenter revenue hit $277 million in the second quarter, up 62.0% year over year on silicon photonics and SiGe demand.
The stock is not pricing this in. GlobalFoundries is up 24.3% year to date as of September 9, 2026, but it has fallen 8.4% over the past month. Every trapped-ion, superconducting, and photonic developer chasing scale eventually walks into someone’s fab. The next name on this list is one of GlobalFoundries’ biggest customers, and it is about to open its own.
2. IBM: The $10 Billion Bet That Turns the Program Into a Foundry Business IBM (NYSE:IBM) is the heavyweight in this program and the largest single recipient. On the second-quarter call, Arvind Krishna said IBM announced a letter of intent with the Commerce Department to build Anderon, “the world’s first pure-play quantum foundry,” supported by a billion dollars in CHIPS incentives and a billion-dollar cash contribution by IBM. As of that call, the award was proposed, not a signed definitive agreement.
The scale behind Anderon is what changes the math. IBM disclosed plans to invest more than $10 billion in quantum over the next five years, spanning R&D, capital expenditure, manufacturing scale-up, M&A, and ecosystem expansion, all pointed at Starling in 2029, the world’s first large-scale, fault-tolerant quantum computer. IDC evaluated 11 quantum computing vendors and ranked IBM first overall. This is a serious industrial commitment.
The share price is the mispricing. IBM is down 20.8% for the calendar year, weighed down by a 42% mainframe decline in the second quarter that overshadowed $2.54 billion of free cash flow. MarketWatch is already framing the selloff as an opportunity. If Anderon signs, the sector’s biggest customer becomes its biggest fab operator.
3. Rigetti Computing: Superconducting Pure-Play With a Nine-Figure Federal Backstop Rigetti Computing (NASDAQ:RGTI) is the superconducting gate-model pure-play whose roadmap now has federal underwriting. Under the May program, the Commerce Department named Rigetti for up to $100 million in planned funding to address next-generation superconducting quantum computing, including miniaturized readout electronics. That is the exact chip work a foundry like GlobalFoundries is being paid separately to fabricate. The picks-and-shovels linkage is direct.
The balance sheet speaks for itself. Rigetti posted second-quarter revenue of $5.14 million, up 185.3% year over year, ended the quarter with $541.29 million in cash and investments, and no debt, and has a Cepheus-1-108Q system live on Rigetti QCS, Amazon Braket, Microsoft Azure Quantum, and qBraid at roughly 99.1% median two-qubit gate fidelity. Analyst target price stands at $28.81, well above the current share price.
Rigetti has given back 28.8% year to date, and that is precisely where the setup can be found. If the letter of intent converts to a signed agreement, the milestone-contingent payout still lands over three years, but the reputational floor lifts immediately. The next name plays a different quantum game entirely.
4. D-Wave Quantum: The Only Recipient Playing Both Sides of the Modality Fight D-Wave Quantum (NYSE:QBTS) is the only company in the CHIPS quantum portfolio pursuing both annealing and gate-model architectures. The Commerce Department named D-Wave for $100 million in planned funding for advancements in annealing and gate-model superconducting quantum systems, including qubit counts, error rates, and coherence through dielectric material optimization and high-density advanced packaging. That last phrase, advanced packaging, is where GlobalFoundries’ cryogenic packaging roadmap intersects the D-Wave device stack.
The commercial mix is where D-Wave stopped looking like a research prop. Second-quarter bookings for the first half of 2026 surged to $35.5 million versus $2.9 million a year earlier, anchored by a $20 million system sale, while remaining performance obligations expanded 668% year over year to $40.7 million, and commercial customers rose to 62.4% of revenue from 45.1%. The $546.2 million cash and investments balance covers the run rate through the roadmap.
Wall Street sees it: the analyst target price is $35.24, with 14 Buy ratings and one Strong Buy against a single Hold. D-Wave is off 35.2% year to date. The last name on this list has more cash than any of them, is newer than all of them, and just walked into the program with a signed letter tied to a supply chain nobody else can touch.
5. Quantinuum: The Newest IPO Sitting on the Biggest War Chest Quantinuum (NASDAQ:QNT) is the trapped-ion leader, and the Commerce Department named it in the same May tranche for $100 million in planned funding to address critical bottlenecks for scaling fault-tolerant trapped-ion computers, including low-loss integrated photonics and reliable optical components at trapped-ion wavelengths. Those are photonic components. On the GlobalFoundries call, management named Quantinuum specifically among the eight leading quantum players it is working with. The picks-and-shovels loop closes here.
The numbers are why this slot is the payoff. Quantinuum reported first-quarter-as-public revenue of $8.00 million, up 279% year over year, ended the quarter with $2.11 billion in cash after a $1.70 billion gross IPO, the largest war chest among quantum pure-plays, and issued initial FY2026 revenue guidance of $28 million to $32 million. The Helios system is live inside Oracle Cloud Infrastructure, Sol trap chips are back from fabrication targeting 2027, and Apollo remains on schedule for 2029.
Quantinuum closed most recently at $50.47 and was last seen down 27.3% from its June 4, 2026, starting price. Newest name, deepest cash, direct Commerce letter, and a fab partner already collecting its own federal check—that is the whole thesis in one ticker.
Washington is betting $2 billion on the “picks and shovels” of quantum computing—and they’re demanding a piece of the companies in return. Close the Loop The Commerce Department concentrated the money in the manufacturing layer, and the fabs are already collecting checks the pure-plays still need to earn. Every letter of intent still has to convert to a signed definitive agreement, and every dollar still has to clear milestone gates against a minority equity stake for the government. That is the price of admission. Spotting the next monster tech winner early tends to come down to a few recurring signals (we cataloged them in a free playbook here: The Next Nvidia Playbook). The order of the queue is set. The signatures are the catalyst.
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MALTA, N.Y., Sept. 08, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced it has finalized a definitive agreement with the U.S. Department of Commerce’s CHIPS Research and Development Office for a $375 million award for research and development to accelerate the company's Quantum Technology Solutions (QTS) business, designed to help scale domestic quantum semiconductor manufacturing and strengthen the United States' leadership in quantum technologies.
The agreement advances the goal of establishing a secure, U.S.-based ecosystem for the development and manufacturing of quantum chips. Through Quantum Technology Solutions, GF is accelerating R&D and expanding access to advanced manufacturing capabilities and enabling quantum computing companies to move from research and prototyping toward commercial-scale production. Under the agreement, GF is eligible to receive up to $375 million in funding over a five-year period tied to the achievement of specified milestones.
"This is another important milestone for Quantum Technology Solutions and our efforts to build a scalable domestic quantum manufacturing ecosystem," said Nicholas Sergeant, vice president and general manager of Quantum Technology Solutions at GlobalFoundries. "Since launching, we have expanded engagement with customers and ecosystem partners who are leveraging GF's R&D and manufacturing expertise to address some of the industry's most challenging scaling requirements. We're grateful for the Department of Commerce's support as we continue building the foundation for a secure, domestic quantum manufacturing ecosystem."
GF has continued to advance its quantum technology roadmap and deepen collaborations across the quantum ecosystem. The company's efforts are focused on enabling the transition from research-driven innovation to scalable manufacturing through differentiated capabilities in cryogenic CMOS technologies, advanced packaging and heterogeneous integration, helping position GF as a foundry partner of choice for emerging quantum applications.
The completion of the agreement reflects continued progress toward establishing a robust U.S. quantum supply chain and expands GF's broader efforts to advance critical semiconductor technologies. GF has also recently announced it has entered into a $300 million letter of intent with the Department's CHIPS Research and Development Office to accelerate R&D in silicon photonics. GF’s initiatives in quantum computing and next-generation optical connectivity are two technologies expected to be foundational to future AI infrastructure and advanced computing systems. GF is focused on continuing to strengthen its position as a trusted manufacturing partner for emerging technology innovators through investments in research.
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 press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” "outlook," "on track" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the continuation of conflicts in the Middle East and Ukraine; ongoing political developments in the United States, and in particular, any political and policy-related changes that may impact our industry and the market generally, such as the imposition of trade controls, tariffs and counter-tariffs between the United States and its trade partners and new legislation; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our strategic optimization efforts; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could result in a system disruption, loss of data or damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; global economic conditions could deteriorate, including due to rising inflation and any potential recession; the expected benefits of our announced partnerships may fail to materialize; and we may fail to achieve the anticipated results or benefits from funding received (including awards under the U.S. CHIPS and Science Act and New York State Green CHIPS) and our expected results and planned or further expansions and operations may not proceed as planned if funding we expect to receive is delayed or withheld for any reason. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them.
Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2025 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission (SEC). Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov.
Newest feature-rich CMOS platform family combines ultra-low power connectivity, sensing and mixed-signal innovation with cost-efficient manufacturing for next-generation edge devices | Source: GlobalFoundries Inc.
SANTA CLARA, Calif., Sept. 02, 2026 (GLOBE NEWSWIRE) -- Today at its annual GF Technology Summit (GTS) in North America, GlobalFoundries (Nasdaq: GFS) (GF) announced process design kit (PDK) availability for its UX platform family, two new feature-rich CMOS technologies purpose-built for next-generation intelligent edge devices and advanced sensing systems. First introduced on stage at GTS last year, the UX family includes 40nm (40UX) and 22nm (22UX) technologies, providing customers with a scalable roadmap for ultra-low power microcontrollers, wireless connectivity devices, sensor interfaces, imaging systems and edge AI applications. Built on proven technology modules and supported by GF’s design ecosystem and global manufacturing footprint, UX technologies help customers accelerate development of AI devices and intelligent systems while balancing performance, power, cost and supply requirements.
As intelligence moves from the cloud into billions of connected devices, designers need semiconductor technologies that combine precise sensing, always-on connectivity and energy-efficient processing within tight power and form factor constraints. The UX family expands GF’s portfolio of differentiated technologies for Physical AI, giving customers a scalable path for solutions enabling connected microcontrollers (MCUs), highly integrated sensing and mixed-signal systems. 40UX brings proven, cost-efficient integration to MCUs and always-on-edge devices, while 22UX provides a higher level of analog, sensing, and mixed-signal performance for more complex intelligent systems.
The 40UX platform is optimized for secure, smart and connected microcontrollers and systems-on-a-chip (SoCs) serving wearable, IoT and wireless connectivity applications. Based on GF’s high-volume 40nm platform with high-endurance eFlash technology that has shipped more than one million wafers to date, 40UX combines ultra-low leakage transistors and SRAM, low-noise analog capabilities, integrated embedded flash with built-in self-test functionality and advanced RF enablement to support long battery life, high reliability and compact form factors. The platform is particularly well suited for Bluetooth Low Energy (BLE) devices, wireless connectivity products, low-noise sensor interfaces and other power-sensitive edge applications.
The 40UX platform is set to ramp to volume production at GF’s Singapore site by 2027, with future production planned through its site in Malta, New York. The technology’s roadmap includes optimizations embedded processing, including high-voltage and noise enablement, Automotive Grade 1 qualification and enhanced embedded non-volatile memory options.
For applications that require higher levels of analog integration and sensing performance, the 22UX platform delivers an analog-optimized 22nm solution for edge AI, imaging and mixed-signal systems. The platform combines ultra-low power operation with low-noise analog devices, improved device matching, wafer-scale Random Telegraph Signal (RTS) noise characterization, bonding-ready wafers for advanced 3D integration and a roadmap for ultra-low leakage, analog compute-in-memory and embedded memory capabilities. The platform is ideally suited for stacked CMOS image sensor readout ICs with a 1/f flicker noise and low-noise 3.3V analog FET for precise measurement. The platform’s improved device matching and higher voltage headroom make it an optimal choice for cost-optimized mixed-signal SoCs, sensor interfaces and power sensitive edge devices that require superior analog performance.
The 22UX platform integrates analog-optimized features including ultra-low power capabilities for exceptional energy-efficiency and third generation fill cells for faster product-level block/module integration. The platform is industry-compatible, offering easy porting from other bulk CMOS platforms, and was developed using high-volume proven modules and GF’s successful 28nm technology that has shipped over one million wafers to date. 22UX will be manufactured at GF’s advanced manufacturing facility in Dresden, Germany with a roadmap to reach multi-site production through GF’s global footprint.
“Intelligence is moving into more of the devices people and businesses rely on every day, creating new demands for power efficiency, precise sensing, connectivity and cost-effective integration,” said Ed Kaste, senior vice president of GF’s CMOS business. “Our new UX platform family gives customers a scalable path to develop differentiated products for the intelligent edge, backed by proven technology and GF’s global manufacturing capabilities. By expanding our feature-rich CMOS portfolio with 40UX and 22UX, we are helping customers bring the next generation of connected and Physical AI systems to market.”
Both platforms are available for customer engagement and prototyping through GF’s GlobalShuttle™ multi-project wafer program with quarterly shuttles scheduled through 2027.
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors the world relies on to live, work and connect. We innovate and partner with customers to deliver more power-efficient, high-performance products for the automotive, smart mobile devices, internet of things, communications infrastructure and other high-growth markets. With our global manufacturing footprint spanning the U.S., Europe, and Asia, GF is a trusted and reliable source for customers around the world. Every day, our talented global team delivers results with an unyielding focus 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.
On August 24, 2026, GLOBALFOUNDRIES Inc
GFS -4.37% 78
shares fell 4.4% to $45.95, amidst a 52-week range of $31.59 to $92.55. This decline reflects broader market trends impacting the semiconductor sector.
GF Value™ verdict: GFS is currently priced at $45.95, which is 1.2% above the GF Value™ estimate of $45.40, indicating it is slightly overvalued.GF Score™: The company holds a score of 78/100, categorizing it as above average.Most notable signal: The momentum rank stands at 9/10, suggesting strong recent performance trends.Is GFS Overvalued or Undervalued?Analyzing the current market price of $45.95 against the GF Value™ estimate of $45.40 reveals that GFS is approximately 1.2% overvalued. The GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic value, calculated based on historical trading multiples, past business growth, and future performance estimates. Given that the current price is above the intrinsic value, there is a limited margin of safety for potential investors. This overvaluation signals caution, as a market correction could lead to a decline in share price.
Despite the slight overvaluation, GFS has demonstrated significant growth year-to-date, with a 31.8% increase. However, the risk of a market pullback should not be overlooked, especially in a sector as volatile as semiconductors. Therefore, while the stock is performing well, the valuation suggests that investors may want to scrutinize their positions closely.
How Does GFS's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)35.9x30.5xForward P/E23.6x-GFS's current P/E ratio of 35.9x is significantly higher than its 5-year median P/E of 30.5x, indicating that the stock is trading at a premium relative to its historical valuation. This supports the GF Value™ conclusion that GFS is overvalued, as the elevated P/E suggests that investors are paying more for each dollar of earnings compared to past trends.
What Does GFS's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. GFS has a GF Score™ of 78/100, indicating it possesses several strengths, particularly in momentum, reflected in its 9/10 rank. However, it shows weaknesses in profitability, where it holds a rank of 4/10.
MetricRatingGF Score™78Financial Strength7/10Profitability4/10Growth7/10Valuation7/10Momentum9/10The overall GF Score™ indicates that while GFS has solid financial strength and growth potential, the profitability rank suggests that the company may be facing challenges in generating earnings relative to its peers. The high momentum rank, however, reflects strong recent performance, which could attract speculative interest despite the profitability concerns.
What Are Gurus and Insiders Doing with GFS?Currently, three gurus hold GFS shares, with two adding to their positions while three have trimmed their holdings in recent quarters. This mixed sentiment among institutional investors indicates a degree of caution in the stock, as guru activity can often signal confidence or lack thereof in a company's future prospects.
Insider activity has shown a net selling position over the past 12 months, with insiders selling $3.6 million worth of shares while there have been no purchases. This net selling can be interpreted as a lack of confidence from those closest to the company, potentially raising red flags for outside investors. The combination of guru and insider activity suggests that while there is some institutional support, caution is warranted given the selling pressure from insiders.
What This Means for InvestorsIn conclusion, based on the GF Value™ assessment, GFS is currently slightly overvalued. The elevated P/E ratio compared to historical norms, combined with insider selling activity, suggests that investors should proceed with caution. While the company's strong momentum and growth metrics are positive indicators, the valuation concerns cannot be ignored. For further insights, visit the GLOBALFOUNDRIES Inc
GFS -4.37% 78
stock page for a comprehensive analysis.
Frequently Asked QuestionsWhat is GFS's GF Score™?
GFS's GF Score™ is 78/100, indicating above-average performance when compared to its peers across various financial metrics.
Is GFS overvalued or undervalued?
GFS is currently overvalued, with a GF Value™ estimate of $45.40 compared to its current price of $45.95.
What is GFS's P/E ratio?
GFS's P/E ratio is 35.9x, which is 18% above its 5-year median P/E of 30.5x, indicating that the stock is trading at a premium relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
SummaryGlobalFoundries remains a buy after the recent selloff, though upside is now more modest and valuation is less compelling than last year.GFS's growth is driven by surging data center revenue (+62% YoY) and new optical networking wins, offset by cyclical weakness in automotive.CapEx is rising sharply to support quantum and silicon photonics initiatives, creating long-term growth potential but introducing near-term cash flow risk.GFS's 1% dividend signals financial health, but yield and upside are limited until speculative investments begin to pay off. JHVEPhoto/iStock Editorial via Getty Images
When last we covered GlobalFoundries (GFS) in September, I reiterated my buy rating on them, citing growth, an improving balance sheet, and the potential benefits of the MIPS acquisition. It’s been a volatile year since then, and the stock was doing incredibly
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
GlobalFoundries Inc. is a mature-node semiconductor manufacturer, positioned as a cyclical industrial value play rather than a high-growth AI stock. GFS's diversified end-market exposure dilutes high-growth segments, but rising data center and robotics demand signals the start of a new upcycle. Geopolitical tensions and Western protectionism provide GFS with a resilient client base and $1.5 billion in CHIPS Act subsidies, shielding it from Chinese overcapacity risk.
Key Takeaways TSMC's leading-edge demand drove 33.7% Q2 revenue growth and 44.7% July revenue growth.GlobalFoundries grew Q2 revenues 6%, while Communications Infrastructure and Data Center rose over 60%.TSMC trades at a lower forward P/E than GlobalFoundries, supporting its stronger investment case. Taiwan Semiconductor Manufacturing Company (TSM - Free Report) , or TSMC, and GlobalFoundries (GFS - Free Report) are two prominent players in the highly competitive foundry segment of the semiconductor industry. TSMC helped establish the pure-play foundry business model, focusing solely on making chips designed by its customers. A majority of its revenues come from wafer fabrication, while packaging and testing, mask making, design and royalty income make up the rest.
On the other hand, GFS is a scaled foundry that serves a broad range of end markets, including automotive, communications infrastructure and data centers, smart mobile devices, home and industrial Internet of Things (IoT). The company specializes in essential chip technologies across digital, analog, mixed-signal, RF, ultra-low-power and embedded memory.
Over the past 12 months, TSMC shares have surged 81.3%, while GFS has gained 48.9%.
Image Source: Zacks Investment Research
Mordor Intelligence projects the foundry market to reach $184.78 billion in 2026, up from $171.72 billion in 2025 and expand at a 7.61% CAGR through 2031. Against this backdrop, let’s analyze which stock makes the stronger investment case.
The Case for TSMCThe company is consistently gaining from strong demand for its leading-edge process technologies. In the second quarter of 2026, revenues increased 33.7% year over year. TSMC’s July revenue report further reflected this momentum, with revenues rising 44.7% year over year. The AI boom continues to drive the need for more computation, supporting the robust demand for leading-edge silicon. TSMC is also seeing a strong outlook from its customers, including major cloud service providers, strengthening its view of a multi-year AI opportunity. With its technology advantages and broad customer base, management expects full-year 2026 revenue growth to be slightly above 40% year over year in U.S. dollar terms.
TSMC is also making progress with its 2-nanometer (N2) ramp-up, which entered high-volume manufacturing in the fourth quarter of 2025 with good yield. Production is now ramping up in phases at Hsinchu and Kaohsiung, supported by demand from smartphones and HPC/AI applications. That said, the steep ramp-up is expected to dilute gross margin by about 3-4 percentage points in the second half of the year.
At the same time, the company continues to execute its global plan to add three more 3-nanometer (N3) fabs — one each in Taiwan, Arizona and Japan — to support its robust multiyear demand pipeline for N3 technologies. It is also increasing mature-node capacity in higher-value areas, such as through JASM Fab 1 in Japan for CMOS image sensor applications and ESMC in Germany for automotive and industrial applications.
The company ended the second quarter with $110 billion in cash and marketable securities, while cash from operations generated in the quarter was nearly TWD 783 billion. TSMC is also increasing its 2026 cash dividend to TWD 24 per share, up 33% from the 2025 levels. The company expects cash dividends per share to continue increasing in 2027.
The Case for GFSGlobalFoundries delivered $1.79 billion in revenues in the second quarter of 2026, which rose 6% year over year and exceeded the high end of its guidance range. Gross margin expanded nearly 500 basis points, helped by improved structural costs, manufacturing productivity and growth in value-accretive secular end markets.
Technology Services is gaining traction as more design wins convert into revenues and customer partnerships expand. Following the MIPS and Synopsys ARC processor IP Solutions business acquisitions, GlobalFoundries lifted its 2026 Technology Services revenue outlook to $100-$120 million from $60-$100 million, with gross margin expected to be significantly above corporate targets.
Among end markets, Communications Infrastructure and Data Center is a strong contributor, with demand for silicon photonics and silicon germanium (SiGe) offerings driving more than 60% year-over-year revenue growth in the second quarter. GlobalFoundries secured multiple new SiGe TIA and driver design wins across networking customers and also closed a first-of-a-kind design win for smart power stage gate drivers on its BCD platform.
Recently, it also entered into a letter of intent with the U.S. Department of Commerce for a $300 million award aimed at advancing next-generation silicon photonics technologies in the United States.
Solid demand for applications across AI-enabled image processing, health care wearables and next-generation MCUs for edge AI compute drove IoT revenue growth to its fastest year-over-year level since 2022. GlobusFoundries landed three strategic chiplet design wins with Lockheed Martin across its FinFET and FDX platforms and expanded its Microchip relationship through a FinFET design win. That said, Smart Mobile Devices are projected to decline by a low-teens percentage in 2026, as memory pricing and related shortages weigh on industry forecasts.
GFS also made progress in quantum, AI data-center networking and power, as well as IP, software and custom silicon during the quarter. In July, the company paid its first quarterly cash dividend of $0.12 per share, signaling confidence in future cash generation.
How Do Estimates Compare for TSM & GFS?The Zacks Consensus Estimate calls for TSMC’s 2026 EPS to increase 54.5% to $16.45. The estimate has moved higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus mark for GFS’ 2026 EPS calls for a 14% increase to $1.96. The estimate has also been revised upward over the past 60 days.
Image Source: Zacks Investment Research
TSM & GFS’ ValuationTSMC shares are trading at a forward, 12-month Price/Earnings (P/E) of 21.41X, while GlobalFoundries trades at 25.57X.
Image Source: Zacks Investment Research
EndnoteTSMC continues to benefit from sustained demand for its leading-edge technologies. Its N2 technology is also moving through a significant production ramp-up and is expected to lift revenues further in the coming quarters. The company is also expanding N3 and mature-node capacity to support customer demand. GlobalFoundries delivered a solid second quarter, aided by higher revenues and stronger margins. The company is gaining momentum in Technology Services, alongside strong demand in Communications Infrastructure and Data Center and IoT end markets. However, Smart Mobile Devices faces a weaker outlook in 2026.
On the dividend front, TSMC is raising its payout, while GFS has paid its first quarterly dividend in the quarter. TSMC shares have outperformed GFS over the past year and trade at a lower earnings multiple. Taking all into account, TSM appears to be the stronger choice for investment today.
TSM sports a Zacks Rank #1 (Strong Buy), while GFS carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Shares of United Microelectronics (NYSE:UMC | UMC Price Prediction) are dropping 7% Tuesday afternoon to $18.22, part of a broad foundry selloff tied to renewed fears about AI capital spending. The selling pressure looks like a sector-wide de-rating and risk-off rotation rather than a UMC event.
The context helps here. UMC stock was still up 153% year to date (YTD) heading into today’s session and carries a market cap near $45.68 billion. Its trailing twelve month P/E ratio sits at 17.71x, a modest multiple that stands out against the sharp run.
AI Spending Fears Trigger the Selloff The Wall Street Journal reported Monday, August 17 that nine top tech companies carry roughly $3 trillion of off-balance-sheet commitments mostly tied to AI, growing faster than the $600 billion of capital expenditures they reported over the past year. That analysis has become the pressure point for reassessing foundry demand, particularly the 2027 and 2028 capacity plans several foundries have telegraphed to the market.
Anthropic told investors its annualized revenue run rate reached $65 billion at the end of July, about a sevenfold increase from a year earlier, per CNBC. OpenAI’s annualized run rate recently reached $40 billion. Reuters reported Anthropic projects roughly $190 billion to $200 billion of 2028 revenue, ambitious figures that also show why any doubt about monetization can rattle the entire semiconductor chain.
Rates matter too. The 30-year Treasury yield topped 5.33% Tuesday, a 19-year high, and was trading near 5.29%. Elevated long-end yields raise the discount rates applied to future cash flows, and that pressures high-multiple growth names, semiconductor foundries very much included.
Peer Foundries Feel the Same Pressure Taiwan Semiconductor Manufacturing (NYSE:TSM) stock is falling 4% to $412.09, though shares remain up 43% YTD. TSM stock carries a trailing P/E ratio of 32.15x, so any question mark around hyperscaler AI capex hits this stock first given its heavy leverage to 3nm and 2nm ramps.
Meanwhile, GlobalFoundries (NASDAQ:GFS) shares are sinking 7% to $49.78, giving back some recent gains. The company reported Q2 2026 revenue of $1.786 billion with communications infrastructure and data center revenue growing 62% year over year (YoY), so the underlying business isn’t the issue here. The stock is up 53% YTD and now trades as if the AI optics tailwind might slow.
Tower Semiconductor (NASDAQ:TSEM) stock is sliding 10% to $236.1, the largest single-day drop in the group. The company reported Q2 2026 revenue of $460 million on August 4 with a record 30% gross margin, and management guided Q3 revenue to $520 million while raising the 2028 revenue target to $3.6 billion. The company’s shares are still up 125% YTD, which explains why profit-taking hits hardest here.
iShares Semiconductor ETF Feels the Squeeze The iShares Semiconductor ETF (NASDAQ:SOXX) is dropping 6% to $525.68, showing the pain extends well past the pure-play foundries. The ETF is a broad semiconductor sector fund rather than a foundry-only vehicle, and its 86% YTD gain reflects the entire chain from design and equipment to memory and logic.
Concentration is worth flagging for your risk framework. SOXX clusters exposure in a narrow set of large-cap chip names, so AI capex reassessments move the fund hard in either direction (if the chipmakers wobble, the power, cooling, and networking suppliers behind the buildout become a natural place to look, and we rounded up seven of them in a free report here). Investors watching for foundry-only exposure won’t find it in SOXX, and that is a meaningful distinction on days like this.
For further context, the NASDAQ 100 tracking Invesco QQQ Trust (NASDAQ:QQQ) is falling 1.66% today for broader tech context, meaning semiconductors are underperforming the NASDAQ 100 by a wide margin. The QQQ move suggests the AI infrastructure trade, not the whole tech complex, is under review.
What to Watch The defensive rotation is telling. Healthcare gained 2% and energy rose 1% at the sector level Tuesday, though the energy bid ties partly to Middle East oil, not pure defense. That mix helps explain why capital left semiconductors so quickly.
Traders may want to keep an eye on whether the foundry group stabilizes into the close or leaks further. If the Wall Street Journal’s off-balance-sheet math keeps circulating, high-multiple foundry names could see continued pressure through the week. Position sizing should reflect that United Microelectronics stock is up 153% YTD and Tower stock is up 125% YTD, and quick reversals in extended names tend to accelerate.
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Geneva, Switzerland, Aug. 13, 2026 (GLOBE NEWSWIRE) -- SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or "Company"), a company that focuses on developing and selling Semiconductors, PKI, and Post-Quantum technology hardware and software products, today issued a CEO Letter to Shareholders, outlining the Company's recent achievements and strategic priorities for the year. Dear Fellow Shareholders, The first half of 2026 marked an inflection point for SEALSQ.
Collaboration establishes a real-time data foundation to improve operational efficiency,
scalability and decision-making across its operations
, /PRNewswire/ -- Redpanda, the leading provider of mission-critical data and agent governance infrastructure, today announced that GlobalFoundries (NASDAQ: GFS) (GF), a leading semiconductor manufacturer, has selected Redpanda as a key partner in its digital transformation journey. Through the collaboration, GF and Redpanda are building a unified real-time data platform that connects manufacturing, engineering and business systems across its operations while supporting a new generation of AI-driven capabilities across GF's global workforce. Redpanda's forward-deployed engineers are working alongside GF teams to modernize core digital manufacturing capabilities, helping improve visibility, responsiveness and operational efficiency. The Redpanda Data Platform replaces legacy change-data-capture infrastructure to stream equipment, process, and scientific data from GF's manufacturing operations.
Redpanda's platform enables GF to bring together data from equipment, process control, engineering, supply chain and manufacturing systems into a unified environment. By creating a consistent real-time view across operations, GF can more effectively monitor processes, support decision-making and scale digital capabilities across its global manufacturing footprint. Tier-0, mission-critical systems are already live in production, helping to advance semiconductor manufacturing capabilities as the platform is deployed across GF's global operations.
"Semiconductor manufacturing depends on trusted, real-time access to operational data and, at GF, we are continually investing in the digital capabilities needed to support increasingly complex manufacturing operations," said Vishal Mehra, SVP, Chief Information Officer at GF. "Working with Redpanda, we are building a modern, scalable data infrastructure that improves operational visibility and accelerates decision-making at global scale. This collaboration helps position GF for the next phase of digital manufacturing as we continue to expand real-time, data-driven capabilities across our manufacturing network."
Leveraging Redpanda's Agentic Data Plane, GF is building a portfolio of AI agents to drive automation, insights, and operational efficiency across IT, procurement, and other business functions. GF plans to expand adoption over time as it continues to integrate real-time insights into day-to-day processes and business workflows across the business.
"GlobalFoundries is transforming itself for a world built on streaming data, AI, and agents," said Alex Gallego, founder and CEO of Redpanda. "That means building the same governance, confidentiality, and access controls semiconductor manufacturing has always required, just designed for a world where agents, not only people, are using that data in real time. With Redpanda, the same data platform that streams their fabs' data today now powers the agents their teams build every day."
Additional resources:
Learn more about how GF is using Redpanda as a key partner in its digital transformation journey in this webinar: https://www.redpanda.com/events/fireside-chat-globalfoundries. Learn how Redpanda connects real-time data and AI agents for your business: redpanda.com/demo 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.
About Redpanda
Redpanda builds the data infrastructure that many businesses already run on, and because your agents need the same governed, real-time access to that data as your applications do, it is also the platform that connects, governs, and audits them. It's all built on a battle-tested data platform that unifies data streaming, intelligent connectivity, and SQL analytics into a single system, delivering high throughput at low latency and unmatched value. Available as Bring Your Own Cloud (BYOC), self-managed, or fully managed cloud, Redpanda is trusted by hundreds of organizations, including Global 2000 enterprises across industries and a thriving global community of tens of thousands of developers. Learn more: redpanda.com
GlobalFoundries' secure CMOS manufacturing platform, Quobly's silicon spin-qubit processors and EeroQ's electrons-on-helium architecture converge inside a single Root-to-Qubit-to-Space trust framework, as SEALQUANTUM.com prepares to deploy the next $100 million across new sovereign quantum assets August 07, 2026 08:30 ET | Source: SEALSQ
Geneva, Switzerland , Aug. 07, 2026 (GLOBE NEWSWIRE) --
August 7, 2026 — SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or the "Company"), a global leader in secure semiconductors, PKI and post-quantum cybersecurity technologies, outlines today how its SEALQuantum.com Sovereign Quantum Vertical Stack (“Stack”) is interconnecting the growing roster of partners and portfolio companies within the SEALQUANTUM.com ecosystem. Beginning in September SEALSQ will enter the second phase of deploying its $200 million budgeted allocation of capital, an internal strategic initiative through which SEALSQ allocates its own capital resources, targeting strategic Quantum assets to further strengthen and scale the platform and accelerate development of its post-quantum and quantum technology capabilities.
Second Phase of Deployment of the $200 Million Commitment Begins in September
Building on the more than $65 million already deployed out of the SEALQuantum.com initiative’s $200 million budget allocation, an additional $100 million has been earmarked for closing through the end of 2027. SEALSQ confirmed that, starting in September 2026, SEALQUANTUM.com will begin the second phase of allocation of its $200 million Quantum initiative. This next phase is intended to add further strategic assets to the Quantum Vertical Sovereign Stack, extending the ecosystem's coverage across post-quantum semiconductors, quantum-resistant cryptographic infrastructure, secure communications and digital identity, edge computing and embedded AI, and satellite and space-based infrastructure. The Company has identified several opportunities for these next investments, currently at various stages of discussion and negotiation.
“With the Quantum Vertical Sovereign Stack, our objective is to build a scalable, sovereign quantum platform that can translate today’s capital deployment into tomorrow’s recurring revenue and strategic moat,” said Carlos Moreira, Chairman and CEO of SEALSQ. “GlobalFoundries provides a trusted, high-volume manufacturing base, while Quobly and EeroQ give us two complementary, CMOS-compatible paths to quantum processors on that same foundation. As we enter the second phase of deployment of our $200 million SEALQuantum initiative in September, our focus is on adding assets that are accretive to this Root-to-Qubit-to-Space architecture, deepen our control of critical layers in the stack, and position SEALSQ to capture the long-term economic value of the SEALQUANTUM.com ecosystem.”
One Stack, Many Partners: How the Quantum Vertical Sovereign Stack Connects the Ecosystem
SEALSQ's Stack is designed as a "Root-to-Qubit" architecture that links every layer of the quantum value chain, secure semiconductors, post-quantum cryptographic infrastructure, digital identity, embedded AI, and satellite and space-based infrastructure, into a single, interoperable framework. Rather than functioning on a standalone basis, portfolio companies and partners including EeroQ, Quobly, ColibriTD, IC'ALPS, WISeSat.Space, Wecan Group, Miraex and Quantix Edge Security are being progressively woven into this common Stack, each contributing a distinct technology layer that connects upward and downward to its neighbors.
At the foundation of the Stack sits SEALSQ's certified secure-semiconductor and PKI base, developed together with manufacturing and process partners such as GlobalFoundries (Nasdaq: GFS) ("GF"), under a strategic Memorandum of Understanding covering secure semiconductor platforms, post-quantum cryptography and CryoCMOS technologies for quantum computing. Above that foundation, emerging quantum-processor technologies, including Quobly's silicon spin-qubit architecture and EeroQ's electrons-on-helium (eHe) architecture, plug into the same trusted, CMOS-compatible manufacturing base, while ColibriTD's quantum-as-a-service layer and IC'ALPS' ASIC design capabilities translate that hardware into deployable products. WISeSat.Space and the planned Quantum Spatial Orbital Cloud (QSOC) then extend the same root of trust into orbit, and Wecan Group and Quantix Edge Security bring quantum-resilient identity, compliance and cybersecurity services to end customers. The result is intended to be a single, auditable chain of trust running from the semiconductor wafer to the satellite constellation.
Because both Quobly's silicon spin-qubit devices and EeroQ's electrons-on-helium devices are engineered for CMOS-compatible fabrication, the Quantum Vertical Sovereign Stack is designed to let both processor families draw on the same class of secure, high-volume semiconductor manufacturing and control-electronics capability that SEALSQ is developing together with GF, giving SEALSQ two complementary, industrially scalable paths to quantum hardware, wrapped in a common layer of certified secure semiconductors and post-quantum cryptography.
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.
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]
Key Takeaways GFS raised its 2026 communications and data center growth outlook to 50%-60% as Q2 revenues jumped over 60%.GFS secured seven optical design wins and expects silicon photonics revenues to more than double in 2026.GFS lifted Q2 non-IFRS gross margin to 29.9% and now expects about 30% for 2026, led mainly by mix. GlobalFoundries Inc. (GFS - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating optical networking demand, broader AI data center opportunities and improving profitability through a richer business mix.
The company’s second-quarter non-IFRS earnings of 46 cents per share topped the Zacks Consensus Estimate of 44 cents. Revenues of $1.79 billion also beat the $1.76 billion estimate. The call centered on capacity, technology investments and growth beyond traditional foundry services.
GFS Raises Its Data Center OutlookCommunications infrastructure and data center revenues rose more than 60% year over year, driven by silicon photonics and silicon germanium demand.
GlobalFoundries now expects 2026 revenue growth of 50% to 60% for that end market, up from its prior high-30% outlook. The business represented about 16% of second-quarter revenues, with customer demand supporting further investment in high-margin technology corridors.
GlobalFoundries Builds Optical CapacityThe company secured seven optical networking design wins during the quarter and now expects silicon photonics revenues to more than double in 2026.
Asked by a Wolfe Research analyst about expansion timing, chief executive Tim Breen said capacity can be added within existing fabs, allowing GlobalFoundries to increase output without constructing another facility.
A TD Cowen analyst pressed management on the sharp outlook increase. Breen said validation across customers and hyperscalers strengthened confidence, while manufacturing productivity improvements should support higher shipments through 2027.
GFS Leans on Mix to Lift MarginsNon-IFRS gross margin reached 29.9%, up 470 basis points year over year, as technology services, stronger manufacturing mix, cost improvements and utilization supported profitability.
GlobalFoundries now expects full-year gross margin of about 30%, rather than merely reaching that level exiting 2026.
During the Q&A, chief financial officer Sam Franklin told a Cantor Fitzgerald analyst that mix remains the largest margin driver. He also cited roughly 10 percentage points of available utilization, structural cost reductions and pricing increases scheduled to begin affecting revenues in 2027.
GlobalFoundries Expands IP and PowerBreen said the completed acquisition of Synopsys’ ARC Processor IP Solutions business deepens the company’s RISC-V, software and custom silicon capabilities.
Franklin said MIPS and ARC are expected to contribute $100 million to $120 million to 2026 technology services revenue, above the prior $60 million to $100 million range.
Breen also highlighted the acquired integrated voltage regulator team as a way to move power conversion closer to AI processors. He said the capability complements GlobalFoundries’ BCD, GaN and integrated inductor portfolio.
GFS Balances End-Market ShiftsFranklin said automotive revenues fell 10% year over year because of customer shipment timing, but management maintained its low-double-digit 2026 growth outlook with greater fourth-quarter weighting.
Smart mobile device revenues declined 6%, and Franklin now expects a low-teens full-year decrease as handset forecasts weakened amid memory pricing and shortages.
Home and industrial IoT improved 10% year over year. Franklin raised the 2026 growth outlook to 10% to 15%, citing normalized inventory, better demand signals and new production ramps.
GlobalFoundries Funds Growth and Returns CashFranklin guided third-quarter revenues to $1.885 billion, plus or minus $25 million, with non-IFRS gross margin of 30.5%, plus or minus 100 basis points.
He projected non-IFRS earnings of 51 cents per share, plus or minus 5 cents, and said second-half operating expenses should remain near the third-quarter level as R&D investment rises.
Franklin also reaffirmed an adjusted free cash flow margin of about 10% for 2026. The board approved another 12-cent quarterly dividend, while roughly $100 million remains under the share repurchase authorization.
GFS Leaves the Call Focused on ExecutionBreen’s tone remained confident on optical networking, quantum manufacturing and physical AI, but he repeatedly tied growth to the pace of capacity additions and factory productivity.
Franklin framed the next phase around mix improvement, disciplined investment and cost execution, with higher-value technologies carrying more weight in revenue and margins.
What Zacks Rank & Style Scores Signal for GlobalFoundriesGFS currently carries a Zacks Rank #3 (Hold), a less favorable designation than the Zacks Rank #1 (Strong Buy) or 2 (Buy) ratings that pair most strongly with A or B Style Scores. Its Momentum Score of A is favorable, while Value and Growth Scores of C are middle-tier readings. You can see the complete list of today’s Zacks #1 Rank stocks here.
The VGM Score of B reflects a favorable combined profile across value, growth and momentum, though the overall signal remains balanced alongside the Hold rank. The Zacks Rank can change as analyst estimates are revised following the just-reported results.
Micron's $250 Billion Bet Could Reshape the AI Memory RaceGlobalFoundries NASDAQ: GFS reported second-quarter fiscal 2026 revenue of $1.786 billion, up 9% sequentially and 6% from a year earlier, as demand for communications infrastructure and data-center applications helped drive growth and margin expansion.
Chief Executive Officer Tim Breen said revenue and non-IFRS profitability measures were at or above the high end of the company’s guidance ranges. The company shipped about 625,000 300-millimeter equivalent wafers, up 8% both sequentially and year over year.
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Quantum Computing's Commercial Breakout Has ArrivedManufacturing services represented about 89% of quarterly revenue, while technology services—including IP, licensing, software, reticles, non-recurring engineering and other items—accounted for about 11%.
Margins Expand as Data-Center Demand Accelerates Chief Financial Officer Sam Franklin said GlobalFoundries generated gross profit of $534 million, translating to a non-IFRS gross margin of about 29.9%, an increase of 470 basis points from the prior-year period. The company attributed the improvement to a richer revenue mix, manufacturing cost improvements and higher utilization.
Quantum Stocks Just Got a Lifeline—Who Benefits Most?Operating profit was $298 million, or a 16.7% operating margin, while net income totaled approximately $256 million. Diluted earnings were $0.46 per share, based on about 556 million fully diluted shares.
Communications infrastructure and data center represented approximately 16% of second-quarter revenue. Revenue in that end market rose 20% sequentially and 62% year over year, fueled by demand for silicon photonics and silicon-germanium products used in optical networking.
GlobalFoundries increased its full-year 2026 outlook for the segment and now expects communications infrastructure and data-center revenue to grow 50% to 60% from a year earlier, compared with its previous expectation for growth in the high-30% range.
Breen said silicon photonics revenue is now expected to more than double in 2026. The company is engaged with four of the five largest optical transceiver suppliers, he said, and is expanding capacity within its existing manufacturing footprint. GlobalFoundries also said it is oversubscribed for silicon-germanium capacity through 2027 and is expanding output at its Vermont facility.
During the quarter, the company secured seven optical-networking design wins across transceiver suppliers, hyperscalers and networking companies. It also taped out a SCALE-platform design win related to near-packaged or co-packaged optics and expects another tape-out in the third quarter.
Other End Markets Show Mixed Trends Automotive revenue, representing about 19% of quarterly sales, declined 13% sequentially and 10% year over year, principally due to customer shipment timing. Nevertheless, GlobalFoundries maintained its expectation for low-double-digit automotive revenue growth for the full year, with greater weighting toward the fourth quarter.
Smart mobile devices accounted for about 36% of revenue. Sales rose 15% sequentially but fell 6% year over year. Franklin said handset forecasts have been reduced due to memory pricing and shortages, and GlobalFoundries now expects smart-mobile revenue to decline by a low-teens percentage rate in 2026.
Home and industrial IoT, which represented about 19% of revenue, increased 30% sequentially and 10% year over year. The company raised its full-year growth outlook for the segment to 10% to 15%, from a prior expectation for mid-single-digit growth.
Acquisitions and Government Partnerships Support Growth Plans GlobalFoundries completed its acquisition of Synopsys’ ARC Processor IP Solutions business in June and acquired the custom power team from Photeon Technologies in July. Breen said the ARC acquisition, combined with MIPS, expands the company’s processor IP, software-development tools and custom-silicon capabilities for automotive, industrial, robotics and edge-AI applications.
Franklin said MIPS and the ARC IP acquisition are expected to contribute $100 million to $120 million in technology-services revenue in 2026, up from the company’s prior estimate of $60 million to $100 million. He said these businesses are R&D-intensive but carry gross margins above GlobalFoundries’ corporate targets.
The company also highlighted quantum computing as a longer-term opportunity. Breen said GlobalFoundries’ Quantum Technology Solutions organization has initiated four customer-specific engagements since its launch in May. The company expects quantum-related revenue over the next one to three years to be primarily engineering work reported within technology services, with manufacturing-services revenue potentially ramping closer to the end of the decade as customer platforms reach volume production.
GlobalFoundries cited an expected $375 million U.S. Department of Commerce grant for quantum manufacturing capacity and a separate letter of intent for a $300 million Commerce Department award supporting next-generation silicon-photonics development, including materials, modulators and packaging.
Third-Quarter Outlook and Capital Returns For the third quarter, GlobalFoundries forecast revenue of $1.885 billion, plus or minus $25 million. It expects non-IFRS gross margin of approximately 30.5%, plus or minus 100 basis points, operating expenses excluding share-based compensation of $260 million, plus or minus $10 million, and diluted earnings per share of $0.51, plus or minus $0.05.
The company said it implemented pricing increases across several technology corridors during the second quarter, with the adjustments expected to begin affecting revenue in 2027. It plans to continue assessing pricing through the second half of 2026.
Cash flow from operations was $405 million in the second quarter, while capital expenditures net of government-grant proceeds totaled $408 million. Adjusted free cash flow was negative $3 million. GlobalFoundries ended the quarter with approximately $3.3 billion in cash equivalents and marketable securities and $1.1 billion in debt.
The company paid its first quarterly cash dividend of $0.12 per share on July 14 and announced another $0.12-per-share quarterly dividend payable Oct. 9 to shareholders of record on Sept. 23. GlobalFoundries also had approximately $100 million remaining under its share-repurchase authorization.
About GlobalFoundries (NASDAQ:GFS)GlobalFoundries, Inc NASDAQ: GFS is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.
GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.
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GlobalFoundries Inc. (GFS - Free Report) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.55%. A quarter ago, it was expected that this company would post earnings of $0.35 per share when it actually produced earnings of $0.4, delivering a surprise of +14.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
GlobalFoundries, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $1.79 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.42%. This compares to year-ago revenues of $1.69 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
GlobalFoundries shares have added about 49% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for GlobalFoundries?While GlobalFoundries has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for GlobalFoundries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $1.87 billion in revenues for the coming quarter and $1.89 on $7.28 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Broadcom Inc. (AVGO - Free Report) , is yet to report results for the quarter ended July 2026.
This chipmaker is expected to post quarterly earnings of $3.22 per share in its upcoming report, which represents a year-over-year change of +90.5%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level.
Broadcom Inc.'s revenues are expected to be $29.47 billion, up 84.7% from the year-ago quarter.
A view of the clean room in U.S. chipmaker GlobalFoundries' new fabrication plant in Singapore September 12, 2023. REUTERS/Edgar Su Purchase Licensing Rights, opens new tab
Aug 5 (Reuters) - GlobalFoundries (GFS.O), opens new tab reported second-quarter revenue above Wall Street estimates on Wednesday, as growing demand for its chips used in data centers boosted sales.
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GlobalFoundries makes specialty chips for communications, data centers, automotive, industrial and consumer electronics companies.
The company reported second-quarter revenue of $1.79 billion; analysts on average estimated $1.77 billion, according to data compiled by LSEG.
Adjusted diluted earnings per share came in at 46 cents, above analysts' estimate of 44 cents.
Spending on artificial intelligence infrastructure has increased demand for its silicon photonics chips, which use light instead of electrical signals to move data faster inside AI data centers.
The specialty chip maker forecast third-quarter revenue of $1.89 billion, plus or minus $25 million, roughly in line with analysts' estimate of $1.88 billion.
Adjusted free cash flow was negative $3 million, compared with positive $277 million a year earlier.
In March, Global Foundries sued Israel-based rival Tower Semiconductor (TSEM.TA), opens new tab alleging the Israeli chipmaker infringed 11 patents related to manufacturing chips used in smartphones and other electronics.
Reporting by Anzar Mehraj in Bengaluru; Editing by Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
For the quarter ended June 2026, GlobalFoundries Inc. (GFS - Free Report) reported revenue of $1.79 billion, up 5.8% over the same period last year. EPS came in at $0.46, compared to $0.42 in the year-ago quarter.
The reported revenue represents a surprise of +1.42% over the Zacks Consensus Estimate of $1.76 billion. With the consensus EPS estimate being $0.44, the EPS surprise was +4.55%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how GlobalFoundries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Wafer shipment volume: 625 versus the three-analyst average estimate of 605.Net revenue- End Markets- Smart Mobile Devices: $644 million compared to the $619.34 million average estimate based on four analysts. The reported number represents a change of -5.7% year over year.Net revenue- End Markets- Automotive: $333 million compared to the $385.69 million average estimate based on four analysts. The reported number represents a change of -9.5% year over year.Net revenue- End Markets- Home and Industrial IoT: $331 million compared to the $292.35 million average estimate based on four analysts. The reported number represents a change of +10.3% year over year.Net revenue- End Markets- Communications Infrastructure & Datacenter: $277 million versus $252.83 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +62% change.View all Key Company Metrics for GlobalFoundries here>>>
Shares of GlobalFoundries have returned -21% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
MALTA, N.Y., Aug. 05, 2026 (GLOBE NEWSWIRE) -- GLOBALFOUNDRIES Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the second quarter ended June 30, 2026.
Key Second Quarter Financial Highlights
Revenue of $1.786 billionGross margin of 28.3% and Non-IFRS gross margin(1) of 29.9%Operating margin of 9.7% and Non-IFRS operating margin(1) of 16.7%Net income of $167 million and Non-IFRS net income(1) of $256 millionDiluted earnings per share of $0.30 and Non-IFRS diluted earnings per share(1) of $0.46Non-IFRS adjusted EBITDA(1) of $587 millionEnding cash, cash equivalents and marketable securities of $3.3 billionNet cash provided by operating activities of $405 million and Non-IFRS adjusted free cash flow(1) of $(3) million "GF delivered strong results in the second quarter, with revenue and Non-IFRS gross margin exceeding the high end of our guidance ranges,” said Tim Breen, CEO of GlobalFoundries. "We continue to see strong momentum, accelerating customer demand, and revenue growth across our strategic growth drivers, including Optical Networking within the AI data center, where our differentiated silicon photonics and silicon germanium technologies are driving meaningful value for our customers."
Recent Business Highlights
In July 2026, GF signed a letter of intent with the U.S. Department of Commerce for a $300 million award to accelerate U.S. silicon photonics leadership. Under the LOI, the Department’s CHIPS Research and Development Office is expected to award GF $300 million to advance next-generation optical materials, wafer technologies and advanced packaging, reinforcing U.S. leadership in a technology essential to AI infrastructure. In July 2026, GF completed the acquisition of Photeon Technologies' integrated voltage regulator (IVR) business, adding differentiated IVR technology, specialized engineering talent, and expanded R&D capabilities. The acquisition complements GF's existing BCD, GaN and integrated inductor technologies and expands the company's capabilities in power delivery solutions for AI data center applications. In June 2026, GF completed its previously-announced acquisition of Synopsys’ ARC Processor IP Solutions business, which together with MIPS brings together RISC-V processor IP, software tools, custom design and advanced manufacturing into a single offering. This acquisition further enables GF as a leader in RISC-V IP solutions and establishes the Company as a holistic technology partner, offering customers a software-to-silicon capability for Physical AI and beyond. In May 2026, GF launched Quantum Technology Solutions (QTS), building upon over a decade of sustained investment in cryogenic CMOS, advanced packaging and materials science. Accelerated by an expected $375 million grant by the U.S. Department of Commerce, pursuant to a letter of intent, and supported by several of the leading quantum companies in the world, GF plans to manufacture at scale the complete hardware solutions that will power real-world quantum computing of the future. Dividend Payment
On July 14 2026, GF paid its first-ever quarterly cash dividend of $0.12 per share. In addition, the Board of Directors has approved a dividend of $0.12 per share payable on October 9, 2026 to shareholders of record as of September 23, 2026.
(1)See “Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. GLOBALFOUNDRIES Inc.
Summary Quarterly Results
(Unaudited, in millions, except per share amounts and wafer shipments)
Year-over-Year Sequential Q2 2026 Q1 2026 Q2 2025 Q2 2026 vs Q2 2025 Q2 2026 vs Q1 2026 Net revenue $1,786 $1,634 $1,688 $98 6 % $152 9 % Gross profit $505 $451 $408 $97 24 % $54 12 %Gross margin 28.3 % 27.6 % 24.2 % +410bps +70bps Non-IFRS gross profit(1) $534 $474 $425 $109 26 % $60 13 %Non-IFRS gross margin(1) 29.9 % 29.0 % 25.2 % +470bps +90bps Operating profit $174 $180 $196 $(22) (11)%
$(6) (3)%
Operating margin 9.7 % 11.0 % 11.6 % (190)bps (130)bps Non-IFRS operating profit(1) $298 $271 $258 $40 16 % $27 10 %Non-IFRS operating margin(1) 16.7 % 16.6 % 15.3 % +140bps +10bps Net income $167 $104 $228 $(61) (27)%
$63 61 %Net income margin 9.4 % 6.4 % 13.5 % (410)bps +300bps Non-IFRS net income(1) $256 $227 $234 $22 9 % $29 13 %Non-IFRS net income margin (1) 14.3 % 13.9 % 13.9 % +40bps +40bps Diluted earnings per share ("EPS") $0.30 $0.18 $0.41 $(0.11) (27)%
$0.12 67 % Non-IFRS diluted EPS(1) $0.46 $0.40 $0.42 $0.04 10 % $0.06 15 % Non-IFRS adjusted EBITDA(1) $587 $561 $585 $2 — % $26 5 %Non-IFRS adjusted EBITDA margin(1) 32.9 % 34.3 % 34.7 % (180)bps (140)bps Cash from operating activities $405 $542 $431 $(26) (6)%
$(137) (25)%
Wafer shipments (300mm equivalent) (in thousands) 625 579 581 44 8 % 46 8 % (1) See “Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful.
GLOBALFOUNDRIES Inc. Summary of Third Quarter 2026 Guidance(1)(Unaudited, in millions, except per share amounts) IFRSShare-Based
Compensation(3)Non-IFRS(2)Net revenue$1,885 ± $25 Gross margin(2)29.5% ± 100bps~100bps30.5% ± 100bpsOperating expenses(2) $318 ± $10~$58$260 ± $10Operating margin(2) 12.7% ± 170bps~400bps16.7% ± 170bpsDiluted EPS(2)(4)$0.37 ± $0.05~$0.14$0.51 ± $0.05Fully Diluted Share Count~556 (1)The Guidance provided contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The Guidance includes management's beliefs and assumptions and is based on information that is available as of the date of this release. (2)Non-IFRS gross margin, Non-IFRS operating expenses, Non-IFRS operating margin and Non-IFRS diluted EPS are Non-IFRS measures and, for purposes of the Guidance only, are defined as gross profit as a percent of revenue, operating expenses, operating profit as a percent of revenue, and diluted EPS, all before share-based compensation, respectively. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. (3)We expect share-based compensation of $18 million and $58 million in cost of revenue and operating expenses, respectively. The Non-IFRS margin impacts are calculated by dividing share-based compensation by net revenue, and the Non-IFRS diluted EPS impact is calculated by dividing share-based compensation by the fully diluted share count. (4)Included in IFRS and Non-IFRS diluted EPS is net interest income (expense) and other income (expense) which we estimate will be between $3 million and $11 million for the third quarter 2026. Also included in IFRS and Non-IFRS diluted EPS is income tax expense which we estimate will be between $28 million and $52 million for the third quarter 2026. GLOBALFOUNDRIES Inc.
Consolidated Statements of Operations
(Unaudited, in millions, except per share amounts)
Three Months Ended June 30, 2026 June 30, 2025 Net revenue $1,786 $1,688Cost of revenue 1,281 1,280Gross profit $505 $408Operating expenses: Research and development 174 134Selling, general and administrative 157 78Operating expenses $331 $212Operating profit $174 $196Finance income (expense), net 9 17Other income (expense), net 13 8Income tax (expense) benefit (29) 7Net income $167 $228EPS: Basic $0.30 $0.41Diluted $0.30 $0.41Shares used in EPS calculation: Basic 549 555Diluted 556 557 GLOBALFOUNDRIES Inc.
Condensed Consolidated Statements of Financial Position
(Unaudited, in millions)
As of June 30, 2026 December 31, 2025 Assets: Cash and cash equivalents $1,087 $1,809 Marketable securities 1,270 1,241 Receivables, prepayments and other 1,489 1,578 Inventories 1,622 1,577 Current assets $5,468 $6,205 Property, plant and equipment, net $7,098 $7,223 Goodwill and intangible assets, net 1,861 1,368 Marketable securities 946 939 Right-of-use assets 578 569 Other assets 937 837 Non-current assets $11,420 $10,936 Total assets $16,888 $17,141 Liabilities and equity: Current portion of long-term debt $98 $86 Other current liabilities 2,111 2,282 Current liabilities $2,209 $2,368 Non-current portion of long-term debt $1,024 $1,065 Non-current portion of lease obligations 495 487 Other liabilities 1,286 1,238 Non-current liabilities $2,805 $2,790 Total liabilities $5,014 $5,158 Shareholders' equity: Common stock / additional paid-in capital $23,937 $24,231 Accumulated deficit (12,178) (12,381)Accumulated other comprehensive income 59 78 Non-controlling interests 56 55 Total liabilities and equity $16,888 $17,141 GLOBALFOUNDRIES Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in millions)
Three Months Ended June 30,
2026 June 30,
2025Operating Activities: Net income $167 $228 Depreciation and amortization 307 335 Finance (income) expense, net and other (14) (8)Deferred income taxes 18 (20)Net change in working capital (115) (136)Other non-cash operating activities 42 32 Net cash provided by operating activities $405 $431 Investing Activities: Purchases of property, plant and equipment and intangible assets $(411) $(159)Acquisitions, net of cash acquired (440) — Net sales (purchases) of marketable securities (294) (23)Other investing activities 26 (25)Net cash used in investing activities $(1,119) $(207) Financing Activities: Proceeds from issuance of equity instruments, net of taxes paid $(3) $1 Proceeds (repayment) of debt, net (45) (36)Net cash used in financing activities $(48) $(35)Effect of exchange rate changes — 5 Net change in cash and cash equivalents $(762) $194 Cash and cash equivalents at the beginning of the period 1,849 1,596 Cash and cash equivalents at the end of the period $1,087 $1,790 GLOBALFOUNDRIES Inc.
Reconciliation of IFRS to Non-IFRS
(Unaudited, in millions, except per share amounts)
Three Months Ended June 30, 2026 Gross profit Selling, general & administrative Research & development Operating profit Other income (expense) Income tax (expense) benefit Net income Diluted EPSAs Reported $505 $157 $174 $174 $13 $(29) $167 $0.30 IFRS margins(1) 28.3 % 9.7 % 9.4 % Share-based compensation 23 (38) (25) 86 — (3) 83 0.15 Structural optimization(2) 3 (4) — 7 — (2) 5 0.01 Amortization of acquired intangibles and other acquisition related charges 3 (23) (5) 31 — — 31 0.06 Revaluation and gain on sale of equity investments — — — — (25) 5 (20) (0.04)Tax matters(3) — — — — — (10) (10) (0.02)Non-IFRS measures(1) $534 $92 $144 $298 $(12) $(39) $256 $0.46 Non-IFRS margins(1) 29.9 % 16.7 % 14.3 % Three Months Ended March 31, 2026 Gross profit Selling, general & administrative Research & development Operating profit Other income (expense) Income tax (expense) benefit Net income Diluted EPSAs Reported $451 $139 $132 $180 $(10) $(81) $104 $0.18IFRS margins(1) 27.6 % 11.0 % 6.4 % Share-based compensation 16 (32) (15) 63 — (2) 61 0.11Structural optimization(2) 2 (3) (1) 6 — (1) 5 0.01Amortization of acquired intangibles and other acquisition related charges 5 (15) (2) 22 — (3) 19 0.03Tax matters(3) — — — — — 38 38 0.07Non-IFRS measures(1) $474 $89 $114 $271 $(10) $(49) $227 $0.40Non-IFRS margins(1) 29.0 % 16.6 % 13.9 % Three Months Ended June 30, 2025 Gross profit Selling, general & administrative Research & development Operating profit Other income (expense) Income tax (expense) benefit Net income Diluted EPSAs Reported $408 $78 $134 $196 $8 $7 $228 $0.41 IFRS margins(1) 24.2 % 11.6 % 13.5 % Share-based compensation 17 (29) (8) 54 — (2) 52 0.09 Structural optimization(2) — (5) — 5 (24) — (19) (0.03)Amortization of acquired intangibles and other acquisition related charges — (2) (1) 3 — — 3 0.01 Litigation claims — — — — 9 (1) 8 0.01 Tax matters(3) — — — — — (38) (38) (0.07)Non-IFRS measures(1) $425 $42 $125 $258 $(7) $(34) $234 $0.42 Non-IFRS margins(1) 25.2 % 15.3 % 13.9 % (1)See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. (2)Structural optimization represents costs associated with employee workforce reductions, manufacturing footprint alignment and liquidation charges. (3)Includes $(10) million and $38 million tax impacts from foreign exchange revaluation of German deferred taxes for the three months ended June 30, 2026 and March 31, 2026, respectively, and $(38) million net deferred tax asset recognition and foreign exchange rate impact for the three months ended June, 30, 2025. GLOBALFOUNDRIES Inc.
Reconciliation of IFRS to Non-IFRS
Non-IFRS Adjusted Free Cash Flow(1)
(Unaudited, in millions)
Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Net cash provided by operating activities $405 $542 $431 Less: Purchases of property, plant and equipment and intangible assets (411) (312) (159)Add: Proceeds from government grants 3 3 5 Non-IFRS total capital expenditures net of proceeds from government grants(1) $(408) (309) (154)Non-IFRS adjusted free cash flow(1) $(3) $233 $277 Non-IFRS adjusted free cash flow margin(1) (0.2
)%
14.3 % 16.4 % (1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful.
Reconciliation of IFRS to Non-IFRS
Non-IFRS Adjusted EBITDA(1)
(Unaudited, in millions)
Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Net revenue $1,786 $1,634 $1,688 Net income 167 104 228 Net income margin 9.4 % 6.4 % 13.5 %Depreciation and amortization 307 311 335 Finance expense 23 22 22 Finance income (32) (37) (39)Income tax expense (benefit) 29 81 (7)Share-based compensation 86 63 54 Structural optimization 7 6 (19)Revaluation and gain on sale of equity investments (25) — — Litigation claims — — 9 Other acquisition related charges 25 11 2 Non-IFRS adjusted EBITDA(1) $587 $561 $585 Non-IFRS adjusted EBITDA margin(1) 32.9 % 34.3 % 34.7 % (1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful.
GLOBALFOUNDRIES Inc.
Financial Measures (Non-IFRS)
In addition to the financial information presented in accordance with International Financial Reporting Standards ("IFRS"), this press release includes the following Non-IFRS financial measures: Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS operating expense, Non-IFRS net income, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense), Non-IFRS diluted earnings per share (“EPS”), Non-IFRS adjusted EBITDA, Non-IFRS adjusted free cash flow, Non-IFRS total capital expenditures net of proceeds from government grants, and any related margins. We define each of Non-IFRS gross profit, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS operating profit, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense) and Non-IFRS net income as gross profit, selling, general and administrative, research and development, operating profit, other income (expense), income tax benefit (expense), and net income (loss), respectively, adjusted for share-based compensation, structural optimization, amortization of acquired intangibles and other acquisition related charges, impairment charges, revaluation of equity investments, restructuring charges, litigation claims, tax matters, and any associated income tax effects. We define Non-IFRS operating expense as Non-IFRS gross profit minus Non-IFRS operating profit. We define Non-IFRS diluted EPS as Non-IFRS net income divided by the diluted shares outstanding. We define Non-IFRS adjusted free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets plus proceeds from government grants related to capital expenditures. We define Non-IFRS total capital expenditures net of proceeds from government grant as purchases of property, plant and equipment and intangible assets less proceeds of government grants. We define Non-IFRS adjusted EBITDA as net income adjusted for the impact of finance expense, finance income, income tax expense (benefit), depreciation and amortization, share-based compensation, restructuring charges, impairment charges, revaluation of equity investments, structural optimization, litigation claims and acquisition related charges. We define each of Non-IFRS gross margin, Non-IFRS operating margin, Non-IFRS net income margin, Non-IFRS adjusted free cash flow margin and Non-IFRS adjusted EBITDA margin as Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS adjusted free cash flow and Non-IFRS adjusted EBITDA, respectively, divided by net revenue. Any adjustments described above that are zero for a given period are excluded from the “Reconciliation of IFRS to Non-IFRS” table. See "Reconciliation of IFRS to Non-IFRS" section for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure.
We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS financial measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These Non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. Management believes that Non-IFRS adjusted free cash flow as a Non-IFRS measure is helpful to investors as it provides insights into the nature and amount of cash the Company generates in the period.
Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as comparative measures.
Conference Call and Webcast Information
GF will host a conference call with the financial community on Wednesday, August 5, 2026 at 8:30 a.m. U.S. Eastern Time (ET) to review the second quarter 2026 results in detail. Interested parties may join the scheduled conference call by registering at https://edge.media-server.com/mmc/p/osibvq84/.
The call will be webcast and can be accessed from the GF Investor Relations website https://investors.gf.com. A replay of the call will be available on the GF Investor Relations website within 24 hours of the actual call.
GF uses its Investor Relations website at https://investors.gf.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following GF's press releases, Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.
This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” "outlook," "on track" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the continuation of conflicts in the Middle East and Ukraine; ongoing political developments in the United States, and in particular, any political and policy-related changes that may impact our industry and the market generally, such as the imposition of trade controls, tariffs and counter-tariffs between the United States and its trade partners and new legislation; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our strategic optimization efforts; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could result in a system disruption, loss of data or damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; global economic conditions could deteriorate, including due to rising inflation and any potential recession; the expected benefits of our announced partnerships may fail to materialize; and we may fail to achieve the anticipated results or benefits from funding received (including awards under the U.S. CHIPS and Science Act and New York State Green CHIPS) and our expected results and planned or further expansions and operations may not proceed as planned if funding we expect to receive is delayed or withheld for any reason. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them.
Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2025 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission (SEC). Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov.
The semiconductor landscape is shifting rapidly as artificial intelligence demands redefine hardware requirements for global enterprises. Choosing between Advanced Micro Devices Inc (AMD +7.00%) and Intel Corp (INTC +10.84%) requires understanding their different approaches to this massive technological transition.
Advanced Micro Devices has transformed from a secondary player into a leader in high-performance computing and AI accelerators. Intel, traditionally the dominant force in PC and server processors, is currently reorganizing its business to include foundry services and specialized AI chips. This comparison examines their financials, market strategies, and risks to help you determine which investment path is better.
Advanced Micro Devices designs high-performance and adaptive computing products, ranging from standard CPUs to advanced AI accelerators, within the semiconductor stocks category. It maintains essential relationships with cloud giants and console manufacturers like Sony Group Corp (SONY -1.24%) and Microsoft Corp (MSFT +1.06%). Recently, the company partnered with OpenAI and Anthropic to deploy its latest GPU generations and acquired ZT Systems’ design business to scale its infrastructure capabilities.
In FY 2025, revenue reached more than $34.6 billion, representing a significant 34% increase compared to the $25.8 billion recorded in the previous year. The company reported a net income of approximately $4.4 billion, which is a substantial rise from the $1.6 billion reported in 2024. Its net margin, which is the percentage of revenue left as profit, improved to roughly 12.5% during this period.
As of its December 2025 balance sheet, the debt-to-equity ratio was a very low 0.1x, suggesting a conservative use of borrowed money. Free cash flow in 2025 was $5.5 billion. Note that stock-based compensation (SBC) represented roughly 21% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Intel CorpIntel operates as an integrated device manufacturer, focusing on x86-based microprocessors and integrated graphics for PCs and data centers. The company also provides foundry services for semiconductor design, manufacturing, and assembly for external customers. It is currently navigating the complexities of its government-funded business model while managing high-profile shareholder lawsuits related to those deals.
In FY 2025, revenue reached approximately $52.9 billion, a slight decrease of nearly 0.5% compared to the prior year. The company reported a net loss of close to $267 million for that fiscal period, though this was a marked improvement over the much larger loss in 2024. Its net margin was roughly negative 0.5%, reflecting the heavy research and manufacturing costs required to transform its business model.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.4x. The current ratio stood at close to 2.0x, and the company reported negative free cash flow of more than $4.9 billion for FY 2025. Note that stock-based compensation (SBC) represented roughly 25% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonAdvanced Micro Devices faces significant risks from U.S. government export controls on advanced AI semiconductors to China. These regulations threaten its revenue from high-end products like the MI308 GPU. It also faces intense competition from Nvidia Corp (NVDA +2.56%) and Intel while relying heavily on third-party foundries such as TSMC and GlobalFoundries Inc (GFS +4.02%) for its manufacturing needs.
Intel faces pressure from competitors like Advanced Micro Devices and Nvidia, who have captured significant market share in the high-growth AI and server sectors. The company is also subject to shareholder lawsuits stemming from its government deals, which creates financial and reputational exposure. Furthermore, the company remains vulnerable to cyclical industry downturns as it attempts to shift its focus from PCs to AI silicon.
Valuation comparisonIntel carries a higher Forward P/E, measuring price against future earnings estimates, while Advanced Micro Devices has a higher P/S ratio, which compares price to revenue.
MetricAdvanced Micro DevicesIntelForward P/E66.2x70.9xP/S ratio20.9x7.8xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Intel is pressing on with its plan to revive its business. This spring it announced a partnership with Space Exploration Technologies Inc (SPCX +9.43%) and Tesla Inc (TSLA +1.64%) to build Terafab, a massive AI chip-making plant aiming to produce as many as 200 billion AI chips a year. Intel is providing its foundry expertise and its 14A process, an effort to produce 1.4-nanometer chips it announced two years ago and is still developing. Also this year, Intel signed a deal with Nvidia to help build a new AI GPU called Crescent Island that can work in tandem with Nvidia’s Blackwell AI chips, and agreed to help develop an AI-centric chip for the Google division of Alphabet Inc (GOOG +0.77%), too. Last year, the company raised investments from the U.S. government and SoftBank to improve its capital position.
All that has generated some optimism on Wall Street. For fiscal 2026, sales are seen rising 19% to $62.3 billion, though a large $11 billion net loss is projected, part of the cost of expanding its foundries in the U.S.
AMD, meanwhile, is riding the wave of a late 2025 deal to supply OpenAI with chips, potentially worth billions of dollars. Management believes the shift from large language models and generative AI to agentic AI and robotic AI will create even more demand for AMD’s style of chips. The company now expects demand for AI-related chips to rise more than 30% annually, up sharply from an estimate executives had provided at the start of 2026. On top of the AI strength, the business has notched impressive wins in healthcare and financial services in recent months.
All of that has analysts expecting AMD to ring up sales of $49.6 billion, a jump of more than 40% year over year, with net income of $8.7 billion.
Intel Corp is starting to impress with its forward-thinking deals that could power the business for years, but AMD’s AI-backed growth is too strong to ignore. The stock to invest in in 2026 is AMD.
GlobalFoundries (NASDAQ:GFS – Get Free Report) will likely be announcing its Q2 2026 results before the market opens on Wednesday, August 5th. Analysts expect the company to post earnings of $0.4330 per share and revenue of $1.7641 billion for the quarter. Interested persons can check the company’s upcoming Q2 2026 earning report page for the latest details on the call scheduled for Wednesday, August 5, 2026 at 8:30 AM ET.
GlobalFoundries (NASDAQ:GFS – Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.05. The business had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.63 billion. GlobalFoundries had a return on equity of 6.85% and a net margin of 11.40%.The business’s quarterly revenue was up 3.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.34 EPS. On average, analysts expect GlobalFoundries to post $1 EPS for the current fiscal year and $2 EPS for the next fiscal year.
GlobalFoundries Stock Performance Shares of GFS opened at $50.01 on Tuesday. The company’s 50 day simple moving average is $71.63 and its 200-day simple moving average is $58.65. GlobalFoundries has a 12-month low of $31.51 and a 12-month high of $92.55. The firm has a market cap of $27.44 billion, a PE ratio of 35.98, a price-to-earnings-growth ratio of 1.77 and a beta of 1.80. The company has a current ratio of 2.59, a quick ratio of 1.87 and a debt-to-equity ratio of 0.13.
GlobalFoundries Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 14th. Shareholders of record on Wednesday, June 24th were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Wednesday, June 24th. GlobalFoundries’s dividend payout ratio (DPR) is presently 34.53%.
Analyst Ratings Changes Several analysts have recently weighed in on GFS shares. Wedbush reaffirmed a “neutral” rating and issued a $50.00 target price on shares of GlobalFoundries in a report on Monday, May 4th. Arete Research set a $95.00 price target on shares of GlobalFoundries in a report on Wednesday, June 10th. UBS Group increased their price objective on GlobalFoundries from $65.00 to $77.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Evercore reaffirmed an “outperform” rating and issued a $85.00 target price on shares of GlobalFoundries in a research note on Tuesday, May 19th. Finally, JPMorgan Chase & Co. increased their price objective on shares of GlobalFoundries from $45.00 to $70.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $74.12.
Read Our Latest Stock Analysis on GlobalFoundries
Insider Transactions at GlobalFoundries In other GlobalFoundries news, insider Samak L. Azar sold 500 shares of the company’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $74.82, for a total value of $37,410.00. Following the transaction, the insider owned 15,494 shares of the company’s stock, valued at approximately $1,159,261.08. This represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 2,800 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $75.17, for a total transaction of $210,476.00. Following the sale, the insider directly owned 6,695 shares of the company’s stock, valued at $503,263.15. This represents a 29.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 19,450 shares of company stock worth $1,412,000.
Hedge Funds Weigh In On GlobalFoundries Several institutional investors and hedge funds have recently modified their holdings of the stock. Royal Bank of Canada increased its holdings in GlobalFoundries by 4.4% in the first quarter. Royal Bank of Canada now owns 15,583 shares of the company’s stock worth $575,000 after buying an additional 660 shares during the last quarter. AQR Capital Management LLC boosted its stake in GlobalFoundries by 77.6% during the 1st quarter. AQR Capital Management LLC now owns 102,048 shares of the company’s stock valued at $3,679,000 after purchasing an additional 44,599 shares during the period. Jones Financial Companies Lllp grew its stake in shares of GlobalFoundries by 7,120.1% in the first quarter. Jones Financial Companies Lllp now owns 12,202 shares of the company’s stock worth $450,000 after acquiring an additional 12,033 shares during the last quarter. American Century Companies Inc. increased its holdings in shares of GlobalFoundries by 3.4% during the 2nd quarter. American Century Companies Inc. now owns 27,606 shares of the company’s stock worth $1,055,000 after purchasing an additional 903 shares during the period. Finally, M&T Bank Corp acquired a new stake in shares of GlobalFoundries during the 2nd quarter worth approximately $269,000.
About GlobalFoundries (Get Free Report)
GlobalFoundries, Inc (NASDAQ: GFS) is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.
GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.
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Marc Antaki, a director of GlobalFoundries Inc. (GFS +0.20%), executed a non-discretionary sale of 1,671 ordinary shares on July 29, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$81,912Shares sold (directly held)1,671Post-transaction shares (directly held)9,202Post-transaction value$433,138.14Key questionsWhat was the primary driver of this transaction?
The disposition was non-discretionary, executed to satisfy tax withholding obligations upon the vesting and settlement of restricted stock units.What is the status of the director's remaining equity stake?
Marc Antaki continues to hold 9,202 shares directly, representing less than 0.01% of the firm's equity. The filing indicates that 9,262 additional unvested RSUs remain, with tranches scheduled for settlement in April and July 2027.What is the financial profile of GlobalFoundries?
The company is a major semiconductor foundry with a $27.4 billion market capitalization. It reported trailing twelve-month revenue of $6.8 billion and net income of $778.0 million, with a one-year stock return of 17% as of the transaction date.How do current market levels compare to the transaction price?
The shares were sold at a weighted average price of $49.02 per share. As of July 30, 2026, the stock was priced at $49.89.Company OverviewMetricValueShare Price (as of market close 2026-07-30)$49.89Market Capitalization$27.4 billionRevenue (TTM)$6.8 billionNet Income (TTM)$778.0 millionCompany SnapshotGlobalFoundries operates as a global semiconductor foundry specializing in the design and manufacturing of integrated circuits for microprocessors, mobile application processors, baseband and network processors, radio frequency modems, microcontrollers, power management units, and microelectromechanical systems.The company generates revenue through a foundry business model, providing semiconductor manufacturing services to fabless design companies and integrated device manufacturers seeking advanced production capabilities without maintaining proprietary fabrication facilities.GlobalFoundries serves a diverse customer base spanning automotive, telecommunications, industrial, consumer electronics, and computing sectors, positioning itself as a critical infrastructure provider for the global semiconductor supply chain.GlobalFoundries is a leading independent semiconductor foundry with a market capitalization of $27.4 billion, generating $6.8 billion in TTM revenue. The company differentiates itself through its specialized manufacturing expertise across multiple technology nodes and its strategic positioning as a trusted alternative to vertically integrated semiconductor manufacturers, serving customers across mission-critical applications in automotive, telecommunications, and industrial markets.
What this transaction means for investorsThe number worth pausing on here is the price. These shares were withheld at $49.02 to cover taxes on vesting stock, a routine mechanical event, but that price tells a story the filing doesn't: GlobalFoundries has fallen sharply from the high $50s earlier in July (and even more since May). Of course, Antaki had no say in the timing here, so read nothing into the sale itself. He keeps 9,202 shares plus roughly the same number in unvested units settling through 2027, so his stake stays tied to the company for years.
However, the drop matters because GlobalFoundries reported second-quarter results on August 5, and the stock had been sliding into it amid shifting sentiment around semiconductor and semiconductor-related names. The last quarter on record showed gross margin expanding to 29%, its largest jump in three years, as the business shifted toward higher-value communications and automotive work. CEO Tim Breen credited "excellent execution from our teams around the world." Still, the fresh earnings report will really drive sentiment. The upmarket shift has been lifting margins, but a soft smartphone market, customer concentration, and heightened spending more broadly across tech are the risks that could explain why the stock has cooled.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GlobalFoundries. The Motley Fool has a disclosure policy.
Camilla Languille, a director of GlobalFoundries Inc. (GFS +0.20%), reported a disposition of 1,671 shares on July 29, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (Directly held)1,671Transaction value~$81,912Post-transaction shares (Directly held)7,559Post-transaction value$355,802.13Key questionsWhat were the specific mechanics of this transaction?
This was a non-discretionary disposition where 1,671 shares were withheld by GlobalFoundries to cover tax liabilities associated with the vesting of ordinary shares. Such arrangements are common for executive and director equity compensation plans and do not reflect an elective reduction in exposure by the insider.How many shares does the director continue to hold in the company?
Following this transaction, Languille directly holds 7,559 ordinary shares. Furthermore, the director holds derivative securities in the form of 8,526 RSUs that are scheduled to vest in tranches through July 2027, subject to continued service.What is the broader financial context for the company at the time of this filing?
For the trailing twelve months, the company generated $6.8 billion in revenue and $778.0 million in net income, while maintaining a market capitalization of $27.4 billion as of the July 30, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-07-30)$49.89Market Capitalization$27.4 billionRevenue (TTM)$6.8 billionNet Income (TTM)$778.0 millionCompany SnapshotGlobalFoundries operates as a global semiconductor foundry specializing in the design and manufacturing of integrated circuits for microprocessors, mobile application processors, baseband and network processors, radio frequency modems, microcontrollers, power management units, and microelectromechanical systems.The company generates revenue through a foundry business model, providing semiconductor manufacturing services to fabless design companies and integrated device manufacturers that seek advanced production capabilities without maintaining their own fabrication facilities.GlobalFoundries serves a diverse customer base spanning automotive, telecommunications, industrial, consumer electronics, and computing sectors, positioning itself as a critical infrastructure provider for the global semiconductor supply chain.GlobalFoundries is a leading independent semiconductor foundry with a market capitalization of $27.4 billion, generating $6.8 billion in TTM revenue. The company differentiates itself through its specialized manufacturing expertise across multiple technology nodes and its strategic positioning as a trusted alternative to vertically integrated semiconductor manufacturers, serving customers across mission-critical applications in automotive, telecommunications, and industrial markets.
What this transaction means for investorsThree GlobalFoundries directors had the exact same number of shares, 1,671, withheld for taxes on the same day, which tells you this was a shared vesting date hitting the board's restricted stock, not anything either director decided. So there's no signal to read in the sale, and Languille keeps 7,559 shares plus another 8,526 in unvested units settling through 2027. Her real exposure to the company actually rises as those vest.
What deserves more attention is where the stock has landed. The last quarter on record was strong: GlobalFoundries lifted gross margin to 29%, its biggest expansion in three years, as it shifted toward higher-value communications and automotive chips over commodity smartphone work. CEO Tim Breen pointed to "excellent execution from our teams around the world." Yet the shares have cooled from the high $50s earlier in July.
For long-term investors, that gap between improving margins and a softening stock is the thing to sit with. The upmarket shift is working, but rapidly shifting sentiment around semiconductors, and more specifically to GlobalFoundries, a weak smartphone market and reliance on a concentrated set of customers, are the pressures that seem to be giving the market pause.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GlobalFoundries. The Motley Fool has a disclosure policy.
Glenda Dorchak, a director at GlobalFoundries Inc. (GFS +0.20%), sold 4,000 ordinary shares on July 20, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)4,000Transaction value$232,880Post-transaction shares (directly held)14,867Post-transaction value$844,594.27Transaction value based on SEC Form 4 weighted average sale price ($58.22); post-transaction value based on July 20, 2026 market close ($56.81).
Key questionsHow does this transaction impact the director's overall ownership interest?
Following the sale, Glenda Dorchak maintains a direct position of 14,867 shares.What was the market context at the time of the sale?
The transaction was executed at $58.22 per share, coinciding with a period where the stock had achieved a 41% gain over the preceding 12 months as of July 20, 2026.What are the fundamental characteristics of the company's current operations?
Globalfoundries reported trailing twelve-month revenue of $6.8 billion and net income of $778.0 million, supporting a market capitalization of $32.1 billion as of the July 21, 2026, market close.Company OverviewMetricValueShare Price (as of market close 2026-07-21)$59.39Market Capitalization$32.1 billionRevenue (TTM)$6.8 billionNet Income (TTM)$778.0 millionCompany SnapshotGlobalFoundries 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 diverse electronic applications.The company generates revenue through a foundry business model, providing manufacturing services and technology platforms to fabless semiconductor companies and integrated device manufacturers seeking specialized production capabilities without capital-intensive in-house fabrication facilities.GlobalFoundries serves a broad customer base spanning mobile communications, networking infrastructure, automotive electronics, industrial applications, and consumer electronics sectors, with clients ranging from Fortune 500 enterprises to emerging technology innovators.GlobalFoundries is a leading independent semiconductor foundry with a global manufacturing footprint. The company maintains a competitive position through its advanced process technology capabilities, diversified customer relationships, and strategic manufacturing locations. With TTM revenue of $6.8 billion and net income of $778.0 million, GlobalFoundries demonstrates substantial scale and profitability within the capital-intensive semiconductor manufacturing sector.
What this transaction means for investorsDorchak sold on July 20, just over two weeks before GlobalFoundries reports second-quarter results on August 5, right at the edge of the window that closes ahead of earnings. Directors often clear scheduled trades before that blackout descends, which is the likeliest read on a modest sale like this, executed after a 41% run in the stock. It leaves her with 14,867 shares, so this is a trim, not an exit, and by itself it says little about where the chipmaker is headed.
The last quarter on record was a strong one. GlobalFoundries expanded gross margin to 29%, its biggest jump in over three years, as its business tilted toward higher-value markets like communications and automotive, with non-smartphone work now two-thirds of revenue. CEO Tim Breen credited "excellent execution from our teams around the world." For long-term investors, that mix shift is the story to watch, and the August 5 report is the next test of it. The move upmarket is lifting margins, but a weak smartphone market and heavy customer concentration are the pressures that could interrupt the climb, which is already being interrupted. Shares have fallen over 40% since late May, so the upcoming reads will be all the more important for sentiment.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GlobalFoundries. The Motley Fool has a disclosure policy.
First Trust Advisors LP raised its holdings in GlobalFoundries Inc. (NASDAQ:GFS – Free Report) by 97.4% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 264,837 shares of the company’s stock after acquiring an additional 130,643 shares during the quarter. First Trust Advisors LP’s holdings in GlobalFoundries were worth $11,780,000 as of its most recent filing with the Securities and Exchange Commission.
Other large investors also recently made changes to their positions in the company. PNC Financial Services Group Inc. grew its stake in shares of GlobalFoundries by 8.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 1,954 shares of the company’s stock worth $87,000 after purchasing an additional 154 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in GlobalFoundries by 2.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,340,385 shares of the company’s stock valued at $59,571,000 after purchasing an additional 31,590 shares during the last quarter. Parallel Advisors LLC lifted its stake in GlobalFoundries by 39.8% during the first quarter. Parallel Advisors LLC now owns 832 shares of the company’s stock valued at $37,000 after purchasing an additional 237 shares during the last quarter. California Public Employees Retirement System boosted its holdings in GlobalFoundries by 3.9% during the first quarter. California Public Employees Retirement System now owns 192,309 shares of the company’s stock worth $8,554,000 after buying an additional 7,144 shares in the last quarter. Finally, Bessemer Group Inc. boosted its holdings in GlobalFoundries by 8,275,141.2% during the first quarter. Bessemer Group Inc. now owns 2,813,582 shares of the company’s stock worth $125,147,000 after buying an additional 2,813,548 shares in the last quarter.
GlobalFoundries Stock Up 6.0% Shares of NASDAQ:GFS opened at $49.89 on Friday. The firm has a 50 day simple moving average of $73.05 and a 200 day simple moving average of $58.52. GlobalFoundries Inc. has a 52 week low of $31.51 and a 52 week high of $92.55. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.87 and a current ratio of 2.59. The company has a market cap of $27.37 billion, a PE ratio of 35.89, a price-to-earnings-growth ratio of 1.66 and a beta of 1.76.
GlobalFoundries (NASDAQ:GFS – Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.05. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The firm had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.63 billion. During the same period in the previous year, the company posted $0.34 EPS. The company’s quarterly revenue was up 3.1% compared to the same quarter last year. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. As a group, research analysts expect that GlobalFoundries Inc. will post 1.38 earnings per share for the current year.
GlobalFoundries Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 14th. Stockholders of record on Wednesday, June 24th were issued a dividend of $0.12 per share. The ex-dividend date was Wednesday, June 24th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.0%. GlobalFoundries’s payout ratio is currently 34.53%.
Analyst Ratings Changes Several research firms have issued reports on GFS. Robert W. Baird set a $100.00 price target on GlobalFoundries in a report on Wednesday, May 6th. Evercore reissued an “outperform” rating and set a $85.00 price objective on shares of GlobalFoundries in a research note on Tuesday, May 19th. Loop Capital set a $80.00 target price on GlobalFoundries in a report on Monday, May 4th. Morgan Stanley boosted their target price on GlobalFoundries from $58.00 to $65.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Finally, Wedbush reaffirmed a “neutral” rating and set a $50.00 target price on shares of GlobalFoundries in a report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, GlobalFoundries presently has a consensus rating of “Hold” and a consensus price target of $74.62.
View Our Latest Stock Analysis on GFS
GlobalFoundries News Summary Here are the key news stories impacting GlobalFoundries this week:
Positive Sentiment: The proposed government award strengthens GlobalFoundries’ position in the strategic U.S. semiconductor supply chain and provides outside funding for a technology area viewed as important to the growth of AI infrastructure. Analysts at Wedbush said the agreement reinforces the case for increased domestic silicon-photonics investment. US to award GlobalFoundries $300 million to develop faster AI chip links Positive Sentiment: Investors are also looking ahead to GlobalFoundries’ second-quarter 2026 results, scheduled for Aug. 5 before the market opens. The company has beaten earnings estimates in each of the past four quarters, with an average surprise of 13.97%, raising expectations for another potential beat. GFS Set to Report Q2 Results Neutral Sentiment: The award remains subject to the finalization of the government agreement, and the immediate financial impact is uncertain. With shares trading at a relatively elevated earnings multiple, some of the optimism surrounding the CHIPS funding may already be reflected in the stock. Neutral Sentiment: GlobalFoundries also streamlined its board following shareholder-backed annual-meeting decisions. The governance change could improve focus, but the reports provide limited evidence of a near-term effect on earnings or valuation. GlobalFoundries Streamlines Board After Shareholder-Backed AGM Decisions Negative Sentiment: An insider sold 335 shares for approximately $19,135 under a pre-arranged Rule 10b5-1 trading plan. The small, scheduled transaction is unlikely to materially change the investment case, but it is a modest negative signal. Insider Activity In related news, Director Glenda Dorchak sold 4,000 shares of the company’s stock in a transaction on Monday, July 20th. The stock was sold at an average price of $58.22, for a total transaction of $232,880.00. Following the transaction, the director directly owned 14,867 shares of the company’s stock, valued at approximately $865,556.74. The trade was a 21.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 2,800 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $75.17, for a total value of $210,476.00. Following the completion of the sale, the insider directly owned 6,695 shares of the company’s stock, valued at approximately $503,263.15. This represents a 29.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 19,615 shares of company stock worth $1,430,608.
About GlobalFoundries (Free Report)
GlobalFoundries, Inc (NASDAQ: GFS) is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.
GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.
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Key Takeaways GFS is expected to post higher Q2 revenues, supported by AI networking, communications and data centers.GlobalFoundries expanded AI and quantum offerings through new launches and an acquisition during the quarter.GFS faces weak smartphone demand, macro uncertainty and geopolitical risks ahead of Q2 earnings. GlobalFoundries Inc. (GFS - Free Report) is set to report second-quarter 2026 results on Aug. 5, before the opening bell. In the trailing four quarters, the company delivered an earnings surprise of 13.97%, beating estimates on all occasions.
The leading semiconductor manufacturer is expected to witness top-line growth year over year, backed by healthy demand in AI networking, communications infrastructure and data center space. Strength in automotive and recovery in industrial IoT are positive factors. However, weak smartphone market, macro headwinds, geopolitical uncertainty and customer concentration are concerning.
Factors at PlayDuring the quarter, GlobalFoundries strengthened its position in AI infrastructure by introducing the SCALE (Silicon Photonics Co-packaged Advanced Light Engine) optical module solution for co-packaged optics. The solution is expected to have boosted the company's silicon photonics portfolio and drive customer engagement in the AI networking domain.
GlobalFoundries also expanded its presence in Physical AI through the completion of the acquisition of Synopsys' Processor IP Solutions business. The buyout is likely to have strengthened prospects across automotive, industrial robotics and edge AI applications.
During the quarter, GlobalFoundries launched Quantum Technology Solutions, a dedicated business focused on manufacturing quantum hardware. The initiative is backed by customer engagements, government support and partnerships with leading quantum computing companies. It is expected to have enhanced the company's exposure to high-performance computing markets.
Innovative product launches and solid demand in AI infrastructure, communications and data center domains are expected to have a positive impact in the second quarter. However, weakness in the smartphone vertical and ongoing macro uncertainty remain concerns. The company faces competition from other major players in the industry such as TSMC, Tower Semiconductor and others.
Overall ExpectationsFor the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.76 billion, indicating an improvement from the year-ago quarter’s reported figure of $1.69 billion. The consensus estimate for adjusted earnings per share is pegged at 44 cents, indicating growth from 42 cents reported a year ago.
Earnings WhispersOur proven model does conclusively predict a likely earnings beat for GFS for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: GFS carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to ConsiderHere are some other stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Sandisk Corporation (SNDK - Free Report) is set to release quarterly numbers on Aug. 5. It has an Earnings ESP of +4.13% and sports a Zacks Rank #1.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +3.08%, and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug. 4.
The Earnings ESP for Advanced Micro Devices, Inc. (AMD - Free Report) is +1.56%, and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug. 4.
Wall Street expects a year-over-year increase in earnings on higher revenues when GlobalFoundries Inc. (GFS - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +4.8%.
Revenues are expected to be $1.76 billion, up 4.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for GlobalFoundries?For GlobalFoundries, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.33%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that GlobalFoundries will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that GlobalFoundries would post earnings of $0.35 per share when it actually produced earnings of $0.40, delivering a surprise of +14.29%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
GlobalFoundries appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Globalfoundries Inc (NASDAQ:GFS) shares gave up earlier gains on Wednesday, trading down about 3% at roughly $48 after the semiconductor manufacturer announced a letter of intent with the US Department of Commerce for a potential $300 million award to accelerate silicon photonics research and development.
The agreement, announced July 29, is expected to provide funding through the Department’s CHIPS Research and Development Office to support the development of next-generation optical materials, wafer technologies and advanced packaging designed to strengthen US leadership in silicon photonics.
Silicon photonics uses light-based technology to transmit data at high speeds while improving energy efficiency compared with traditional electrical connections. The technology is becoming increasingly important for artificial intelligence and high-performance computing applications as data center workloads require greater bandwidth and lower power consumption.
GlobalFoundries said the funding would support the advancement of silicon photonics wafer technologies, optical materials and advanced packaging solutions, including its 3D hybrid bonding capabilities. The work is expected to help accelerate the adoption of near-packaged optics (NPO) and co-packaged optics (CPO), which bring optical connectivity closer to computing components to improve performance.
The company said the initiative builds on its recently launched SCALE (Silicon Photonics Co-Packaged Advanced Light Engine) platform, which targets modularity, 400Gb/s performance and a fivefold increase in energy efficiency compared with current-generation implementations.
As part of a separate agreement, the U.S. Department of Commerce will receive equity from GlobalFoundries representing approximately 1% ownership of the company as of Wednesday, allowing the public to share in potential future growth, according to GlobalFoundries.
“Silicon photonics is essential to AI infrastructure. For a decade, the industry talked about the shift from copper to optical as something that was coming, today it is here, moving data at higher bandwidth and improved power efficiency as workloads grow more complex,” GlobalFoundries CEO Tim Breen said in a statement.
“GlobalFoundries has spent more than a decade building the technology, footprint and ecosystem to lead this transition, and we have the proven manufacturing foundation to scale it in the United States, accelerating technology leadership for generations to come.”
The company said the work will leverage its existing manufacturing capabilities in Malta, New York, and Burlington, Vermont, to help accelerate a U.S.-based path to high-volume silicon photonics production.
LOI for CHIPS R&D award advances the optical technologies powering AI and high-performance computing July 29, 2026 06:32 ET | Source: GlobalFoundries Inc.
MALTA, N.Y., July 29, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) today announced it has entered into a letter of intent (LOI) with the U.S. Department of Commerce to accelerate research and development of next-generation silicon photonics — the optical technology that moves data at the speed of light and underpins the AI and high-performance computing data centers driving the global economy. Under the LOI, the Department’s CHIPS Research and Development Office is expected to award GF $300 million to advance next-generation optical materials, wafer technologies and advanced packaging, reinforcing U.S. leadership in a technology essential to AI infrastructure.
The award will accelerate GF’s development of next-generation silicon photonics wafer technologies, novel optical materials and advanced packaging, including proven 3D hybrid bonding, that enable the roll-out of near-packaged optics (NPO) and co-packaged optics (CPO). This work builds directly on GF’s recently introduced SCALE™ (Silicon Photonics Co-Packaged Advanced Light Engine) platform, targeting industry-leading modularity, 400Gb/s performance and a 5x increase in energy efficiency over current-generation implementations.
In a separate agreement, the U.S. Department of Commerce will receive equity from GF, representing approximately 1 percent ownership as of today's date, enabling the American public to share in GF's growth.
“With today’s compute supply chain investments, the Trump Administration is accelerating America’s innovation engine,” said Secretary of Commerce Howard Lutnick. “These strategic investments will enhance our country’s domestic capabilities, create high-paying jobs and keep America at the forefront of the semiconductor industry.”
“The CHIPS R&D incentives will support a breakthrough in compute and communication networks moving past traditional copper bottlenecking to power next-generation AI,” said Bill Frauenhofer, the Executive Director for Semiconductor Innovation and Investment at the Department of Commerce. “Accelerating R&D for domestic photonics capabilities and advanced packaging provides American industry the extreme bandwidth and energy efficiency to scale complex AI workloads securely and rapidly.”
Silicon photonics enables ultra-high bandwidth, energy-efficient data movement by transmitting information with light rather than electrical signals — delivering greater performance, higher interconnect density and lower power consumption as AI and data center workloads scale. GF’s silicon photonics platform is enabling today’s pluggable optical interconnects and is uniquely positioned to enable the industry’s transition to near-packaged optics (NPO) and co-packaged optics (CPO). Together with GF’s recently introduced SCALE™, customers gain a clear, scalable, U.S.-based path to meeting the demands of next-generation architectures. The work will leverage GF’s existing capabilities in Malta, N.Y., and Burlington, Vt., to help accelerate a U.S.-based path to high-volume silicon photonics manufacturing.
“Silicon photonics is essential to AI infrastructure. For a decade, the industry talked about the shift from copper to optical as something that was coming — today it is here, moving data at higher bandwidth and improved power efficiency as workloads grow more complex,” said Tim Breen, CEO of GlobalFoundries. “GlobalFoundries has spent more than a decade building the technology, footprint and ecosystem to lead this transition, and we have the proven manufacturing foundation to scale it — in the United States — accelerating technology leadership for generations to come. We are proud to deepen our partnership with the U.S. Government, and the CHIPS R&D Office in particular, to accelerate our programs.”
“As we accelerate development of next-generation optical materials and co-packaged optics, GF is building on our already qualified portfolio of photonic devices, proven 3D hybrid bonding and advanced packaging expertise, combined with our manufacturing scale to bring near-packaged and co-packaged optics to high volume — putting our customers on a direct, U.S.-based path to scaling optical connectivity for tomorrow’s AI systems,” said Gregg Bartlett, chief technology officer of GlobalFoundries.
GF is working with leading customers to ensure emerging NPO and CPO architectures and next-generation optical engines are supported by U.S.-based silicon photonics R&D. These efforts reflect a shared focus on scaling the technologies that will drive the next wave of AI and data center performance.
AMD
“As AI systems scale, moving data efficiently is as critical as increasing compute performance. Silicon photonics and advanced packaging will be key to delivering the bandwidth, energy efficiency, and system-level connectivity required for the next generation of AI cluster infrastructure. We welcome GlobalFoundries’ continued investment in U.S.-based innovation and manufacturing, and the broader public-private collaboration needed to advance these foundational technologies,” said AMD CTO and EVP Mark Papermaster.
Broadcom
"As AI workloads continue to grow in size and complexity, scaling the infrastructure that connects increasingly powerful compute clusters is becoming one of the industry's defining challenges. Advances in optical interconnects, silicon photonics and advanced packaging will be critical to enabling the next generation of AI architectures. GlobalFoundries' announcement today helps strengthen the innovation ecosystem needed to accelerate development of these foundational technologies," said Near Margalit, VP and GM of Optical Systems Division, Broadcom.
Cisco
"As AI infrastructure scales, moving data efficiently is becoming as important as compute itself. Advances in silicon photonics and optical interconnects will be critical to enabling the bandwidth, performance and energy efficiency future AI systems require. GlobalFoundries' investment in next-generation silicon photonics technologies helps strengthen the foundation for future AI networking and optical infrastructure," said Jeetu Patel, President and Chief Product Officer of Cisco.
Corning
"The rapid growth of AI is driving unprecedented bandwidth demands, making optical connectivity essential to next-generation data centers. Meeting these demands will require innovation across the ecosystem from advanced materials and optical components to silicon photonics and packaging. Investments such as GlobalFoundries' announcement today help strengthen the U.S. innovation and manufacturing base needed to scale future AI infrastructure," said Wendell P. Weeks, Chairman, Chief Executive Officer, and President of Corning Incorporated.
Lumentum
"AI is driving unprecedented demand for optical connectivity that can move more data while consuming less power. Meeting that challenge will require continued innovation across the silicon photonics ecosystem and a strong, resilient U.S.-based supply chain capable of scaling advanced optical technologies. GlobalFoundries' investments in silicon photonics and advanced packaging, combined with support from the U.S. government, are helping accelerate an open path to next-generation optical interconnect that will be essential for the future of AI and high-performance computing,” said Michael Hurlston, CEO of Lumentum.
Marvell
“The bottleneck in AI infrastructure is shifting from compute to connectivity — the ability to move data between and within systems without letting bandwidth or power constraints limit performance. As a leader in silicon photonics and optical connectivity, Marvell welcomes continued investment in U.S.-based R&D to accelerate the transition to near-packaged and co-packaged optics, key to scaling the next generation of AI infrastructure,” said Chris Koopmans, President and Chief Operating Officer, Marvell.
Meta
"Silicon photonics technologies will play a critical role in future generations of Meta's AI infrastructure. We believe that a multi-supplier, geographically diverse ecosystem produces the best technical innovations and the most scalable high-volume supply chains, and investing in U.S. manufacturing capacity is a crucial component in achieving this goal", said Yee Jiun Song, VP of Engineering, Meta.
Microsoft
"The next generation of AI infrastructure will require significant advances in networking, optical interconnects and data movement. Silicon photonics is an important enabling technology for meeting those demands. Microsoft welcomes industrywide investments that accelerate innovation and strengthen the ecosystem developing the technologies that will power the future of AI," said Rani Borkar, President of Azure Hardware Systems and Infrastructure, Microsoft.
NVIDIA
“Rebuilding our supply chains is critical to the new industrial revolution. Scaling US manufacturing requires advances across chips, networking, optics, software, and manufacturing. Silicon photonics is essential to that future, and GlobalFoundries brings the manufacturing expertise to help make it real in the United States," said NVIDIA founder and CEO Jensen Huang.
Qualcomm
"As AI expands across cloud, enterprise and edge environments, enabling greater performance and efficiency will require innovation throughout the technology stack. Silicon photonics has the potential to play an important role in supporting next-generation AI platforms by helping address growing bandwidth and connectivity demands. We welcome efforts that advance innovation in this important technology area," said Kevin O'Buckley, Qualcomm Executive Vice President, Global Operations and Supply Chain.
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 press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” "outlook," "on track" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the continuation of conflicts in the Middle East and Ukraine; ongoing political developments in the United States, and in particular, any political and policy-related changes that may impact our industry and the market generally, such as the imposition of trade controls, tariffs and counter-tariffs between the United States and its trade partners and new legislation; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our strategic optimization efforts; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could result in a system disruption, loss of data or damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; global economic conditions could deteriorate, including due to rising inflation and any potential recession; the expected benefits of our announced partnerships may fail to materialize; and we may fail to achieve the anticipated results or benefits from funding received (including awards under the U.S. CHIPS and Science Act and New York State Green CHIPS) and our expected results and planned or further expansions and operations may not proceed as planned if funding we expect to receive is delayed or withheld for any reason. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them.
Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2025 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission (SEC). Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov.
AI (Artificial Intelligence) letters and robot hand miniature in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration//File Photo Purchase Licensing Rights, opens new tab
July 29 (Reuters) - GlobalFoundries (GFS.O), opens new tab said on Wednesday the U.S. government will award $300 million to the chipmaker to bolster research and development of silicon photonics technology to power more efficient AI data centers.
The award is part of President Donald Trump's effort to direct CHIPS Act research funding toward critical semiconductor technologies as Washington seeks to strengthen its position in the global race with China.
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The administration has previously committed $150 million for semiconductor manufacturing equipment and $2 billion for quantum computing.
Silicon photonics uses light instead of electrical signals to move data between chips, enabling higher bandwidth and lower power consumption for AI systems.
The funding from the U.S. Department of Commerce is also aimed at advancing co-packaged optics (CPO), a technology that integrates silicon photonics directly alongside AI processors to further boost data-transfer speeds and energy efficiency.
Much of the supply chain for silicon photonics and advanced optical packaging is currently concentrated outside the United States, with major manufacturers including Taiwan's TSMC (2330.TW), opens new tab and Israel's Tower Semiconductor (TSEM.TA), opens new tab.
GlobalFoundries said it is targeting to boost data transfer speeds to 400 gigabits per second and up to five times greater energy efficiency than current-generation implementations.
"GlobalFoundries has spent more than a decade building the technology, footprint and ecosystem to lead this transition, and we have the proven manufacturing foundation to scale it — in the United States," said Tim Breen, CEO of GlobalFoundries.
The research will use the company's facilities in Malta, New York, and Burlington, Vermont.
Reporting by Harshita Mary Varghese in Bengaluru and Stephen Nellis in San Francisco; Editing by Vijay Kishore
Our Standards: The Thomson Reuters Trust Principles., opens new tab
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.
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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.
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.
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.
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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
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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
$23.63 -0.19 (-0.81%)
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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
RGTI
Rigetti Computing
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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.
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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
IBM
International Business Machines
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52-Week Range$212.34▼
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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
RGTI
Rigetti Computing
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52-Week Range$10.30▼
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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.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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