GlobalFoundries Inc: Strong Q1 Performance and Promising Outlook Justify Buy Rating Despite Tariff Concerns

In a report released today, Quinn Bolton from Needham maintained a Buy rating on GlobalFoundries Inc (GFS – Research Report), with a price target of $50.00.

Quinn Bolton has given his Buy rating due to a combination of factors including GlobalFoundries Inc’s robust performance in the first quarter of 2025 and its optimistic guidance for the second quarter, which surpassed market expectations. Despite some concerns regarding tariffs affecting Smart Mobile and Home & Industrial IoT sectors, the company’s diverse manufacturing base is expected to mitigate these impacts, providing a stable outlook.
Additionally, the company is maintaining its gross margin target for 2025 at 30%, although there is some caution due to tariff uncertainties. The anticipated decline in wafer pricing, influenced by changes in product mix and the end of customer V A payments, is balanced by promising opportunities in the Communications Infrastructure and Data Center market, particularly in SATCOM and optical solutions. These factors collectively support the Buy rating, with a maintained price target of $50 based on future earnings projections.