Analyst Quinn Bolton of Needham maintained a Buy rating on GlobalFoundries Inc, with a price target of $42.00.
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Quinn Bolton has given his Buy rating due to a combination of factors that highlight GlobalFoundries Inc’s positive financial trajectory and strategic positioning. The company has exceeded expectations with its third-quarter results and has provided an optimistic forecast for the fourth quarter, indicating a stronger-than-anticipated performance. This is largely driven by a significant uptick in revenue projections, particularly in the SATCOM and optical networking sectors, which are expected to grow at a rate exceeding previous estimates.
Furthermore, GlobalFoundries is experiencing an improvement in its gross margin, attributed to a favorable shift in its revenue mix, effective cost management, and better utilization rates. The company is also gaining traction in on-shore manufacturing within the U.S. and Europe, which could enhance its competitive edge. Additionally, a strategic licensing agreement with TSMC for GaN technology, set to commence in the latter half of 2026, is expected to bolster its capabilities in data center applications. These factors collectively underpin Bolton’s positive outlook and Buy rating for the stock.