GlobalFoundries Inc. (NASDAQ:GFS) shares traded higher Thursday after announcing a $2 billion, five-year manufacturing agreement with Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).
Under the deal, GlobalFoundries will supply U.S.-produced silicon interposers for TSMC’s CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging ecosystem.
• GlobalFoundries stock is surging to new heights today. Why is GFS stock up today?
Expanding U.S. CoWoS Capacity
GlobalFoundries will expand its Malta, New York facility to support demand for high-performance computing (HPC) and AI workloads.
The site is expected to become the first U.S.-based source of silicon interposers with embedded deep trench capacitor components.
Volume production is expected to begin ramping in the first half of 2028. The agreement also allows for additional capacity expansion as customer demand grows.
“Advanced packaging is becoming increasingly critical to delivering the performance, power efficiency and scale required for next-generation AI systems,” said Ed Kaste, senior vice president of CMOS Business at GlobalFoundries.
Quantum Manufacturing Momentum
The TSMC agreement follows another recent manufacturing win.
On Tuesday, Xanadu Quantum Technologies Ltd. (NASDAQ:XNDU) announced a multi-year partnership with GlobalFoundries to manufacture components for utility-scale quantum computers.
The work will use GlobalFoundries’ 300 mm production line in Malta and includes ultra-low-loss silicon nitride photonics and superconducting nanowire single-photon detectors.
GFS Technical Outlook
GFS has moved back above its shorter-term moving averages, trading 7.3% above its 20-day SMA and 5.9% above its 50-day SMA.
The longer-term setup remains mixed, with the stock still 16% below its 100-day SMA and 6.8% below its 200-day SMA.
Momentum is improving, with MACD above its signal line and a positive histogram. However, the September Death Cross, when the 50-day SMA moved below the 200-day SMA, remains a longer-term technical headwind.
Key resistance sits near $55.50, close to the 200-day moving-average area, while support is near $42.50.
Earnings and Analyst Outlook
GlobalFoundries’ next confirmed earnings report is scheduled for Nov. 4.
Analysts expect EPS of 50 cents, up from 41 cents a year earlier, on revenue of $1.89 billion versus $1.69 billion.
The stock carries a Buy consensus rating with an average price target of $74.09.
Recent analyst actions include Stifel initiating coverage with a Buy rating and a $60 target on Sept. 2, TD Cowen maintaining a Buy rating while lowering its target to $75 on Aug. 6, and UBS maintaining a Neutral rating while cutting its target to $55.
GFS Stock Price Action
GlobalFoundries shares were up 4.46% at $50.22 at the time of publication on Thursday, according to Benzinga Pro data.
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