GlobalFoundries Inc. (NASDAQ:GFS) on Thursday launched Quantum Technology Solutions, a new business aimed at scaling U.S. quantum computing manufacturing capabilities.
The company said it will manufacture quantum processor units, cryogenic control chips, advanced packaging and superconducting interconnects for utility-scale quantum systems.
The U.S. Department of Commerce signed a letter of intent to award GlobalFoundries $375 million to support the expansion. The department will also receive a strategic equity stake of about 1% in the company.
Commerce Secretary Howard Lutnick said the investment would help strengthen domestic quantum technology leadership and create high-paying U.S. jobs.
GlobalFoundries said the initiative is supported by partnerships with quantum companies including PsiQuantum Corp., Quantinuum and Diraq, along with support from Alphabet Inc. (NASDAQ:GOOGL) subsidiary Google Quantum AI, Microsoft Corp. (NASDAQ:MSFT) and NVIDIA Corp. (NASDAQ:NVDA).
Technical Analysis
The stock has shown remarkable performance over the last year, up 87.52%. Currently, it is trading significantly above its key moving averages, with the price sitting 13.9% above the 20-day simple moving average (SMA) and 85.1% above the 200-day SMA.
The moving average convergence divergence (MACD) is currently below its signal line, indicating that momentum may be fading unless it can reclaim that baseline. This suggests that while the stock is experiencing a strong upward move, the momentum may not be as robust as it appears.
- Key Resistance: $76.98 — This level is significant as it represents the recent 52-week high reached in May.
- Key Support: $68.34 — This level is important as it aligns with the 20-day SMA, which could act as a cushion for the stock.
Earnings & Analyst Outlook
GlobalFoundries is slated to provide its next financial update on August 4, 2026 (estimated).
- EPS Estimate: 40 cents (Down from 42 cents YoY)
- Revenue Estimate: $1.76 billion (Up from $1.69 billion YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $70.42. Recent analyst moves include:
- Evercore ISI Group: Outperform (Raises forecast to $85.00) (May 19)
- Susquehanna: Positive (Raises forecast to $125.00) (May 11)
- UBS: Neutral (Raises forecast to $77.00) (May 6)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for GlobalFoundries, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 51.01 — Indicates a moderate valuation relative to peers.
- Growth Rank: 71.81 — Suggests strong growth potential compared to the broader market.
- Momentum Rank: 94.94 — Indicates that the stock is outperforming the broader market significantly.
The Verdict: GlobalFoundries’ Benzinga Edge signal reveals a growth-heavy profile with strong momentum, suggesting that the stock is well-positioned for continued upward movement. However, the moderate value rank indicates that investors should be mindful of valuation as the stock progresses.
Top ETF Exposure
- Invesco NASDAQ Next Gen 100 ETF (NASDAQ:QQQJ): 1.95% Weight
Price Action
GFS Price Action: Globalfoundries shares were up 11.47% at $78.91 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
