Stifel Starts GlobalFoundries Inc. (GFS) at Buy, Top Pick

Stifel analyst Sahej Singh initiates coverage on GlobalFoundries Inc. (NASDAQ: GFS) with a Buy rating and a price target of $60.00.

The analyst comments "Asymmetric Upside Potential Tied to 'Show-Me' Story at Attractive Valuation and Early Innings of Execution, With Geopolitical Tailwinds: GFS, under a relatively new management team, put numbers and dates on its turnaround at the May 2026 Investor Day: 10-12% revenue CAGR, 40% gross margin exiting 2028 (45% long-term), 25% operating margin (35% long-term) and ~$4 of EPS exiting 2028, plus an up-to-50%-of-FCF return framework. The key near-term growth engine is photonics, where GF now expects silicon photonics revenue to more than double in 2026 (from $400-500mn estimated), and targets a ~$1B SiPho run rate exiting 2028 and ~$2B by 2030 (with capacity to scale up to ~$4B); it also signed a July letter of intent for a $300mn Department of Commerce award specifically to accelerate U.S. silicon photonics and advanced packaging, building on the $375M quantum award, and taking U.S. Government LOI equity ownership to 2% total. The name sits as a bit of a coiled spring, in our view, and we note consensus is relatively mixed on optimism. At ~3x EV/FY2 sales, GFS is the cheapest in our group and sits discounted on a bit of a 'prove-it' sentiment, and is why we see asymmetric upside relative to downside, wherein, should near-term execution follow through (we think it will), GFS should benefit from earnings accretion and potentially an upward multiple re-rate."

For an analyst ratings summary and ratings history on GlobalFoundries Inc. click here. For more ratings news on GlobalFoundries Inc. click here.

Shares of GlobalFoundries Inc. closed at $44.69 yesterday.

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