Rating
Buy
Price target
$55
Previous
—
Implied upside
+13%

Needham analyst Charles Shi assumed coverage on GlobalFoundries (NASDAQ: GFS) with a Buy rating and a price target of $55.00.

“GlobalFoundries reported C4Q25 revenue of $1.83B (+8% QoQ), at the high-end of guidance with strength seen in Automotive and Data Center-related segments, with both wafer shipments and ASPs growing QoQ.

Non-IFRS gross margins were 29.0% (+300bps QoQ) on strong mix and utilization.

C1Q26 was guided seasonally lower, though we ultimately expect CY26 to be a growth year for GFS.

For CY26, Smart Mobile may moderate lower as smartphone units could decline on memory pricing issues, but this should be offset by growth in Automotive and Data Center, with the latter primarily driven by Silicon Photonics doubling in CY26.

With the coverage transfer, we rate GFS as a Buy and establish a PT of $55 (26x our CY27 NG EPS of $2.08).”

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