Advanced Micro Devices (AMD) boosted GlobalFoundries (GFS) stock on Monday after the two companies will reportedly collaborate on Co-Packaged Optics (CPO). This is a new technology for AI workstations that utilizes light instead of copper to transfer information. The latest update revealed that AMD will turn to GlobalFoundries for CPO in its upcoming Instinct MI500 accelerator.
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New trading tool for NVDA bearsWhile today’s news is exciting for the AI space, it will be some time before AMD’s Instinct MI500 accelerator is released. The company is currently focused on the Instinct MI400 series and won’t be ready to release the Instinct MI500 series until 2027. However, the CPO news does show that AMD is making good use of Enosemi, a photonics company it purchased last year to accelerate its CPO technology.
AMD’s push into CPO makes sense, as the semiconductor industry shifts to this technology. Rival Nvidia (NVDA) is working on its own CPO technology for its Vera Rubin AI accelerators. It’s teamed up with TSMC (TSM) to integrate this technology into its products.
GFS Stock Movement Today
GlobalFoundries stock was up 7.2% on Monday, extending a 68.07% rally year-to-date. The stock has also increased 74.59% over the past 12 months.
AMD stock was down 1.57% today but was still up 28.01% year-to-date. The shares have also rallied 225.37% over the past 12 months.
Is GlobalFoundries Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for GlobalFoundries is Hold, based on four Buy, nine Hold, and one Sell rating over the past three months. With that comes an average GFS stock price target of $50.68, representing a potential 13.74% upside for the shares.
