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GlobalFoundries Stock Hits Bottom: Is a Rebound Coming?
GFSGLOBALFOUNDRIES(GFS) MarketBeat·2025-05-10 11:31

Core Viewpoint - GlobalFoundries is expected to rebound after hitting a bottom in early Q2 2025, driven by a return to growth as indicated by Q1 results and positive forecasts for acceleration [1] Financial Performance - GlobalFoundries reported Q1 revenue of 1.59billion,markinga2.61.59 billion, marking a 2.6% year-over-year growth, the first increase in eight quarters, surpassing MarketBeat's consensus by 60 basis points [5] - Net income increased by 57%, with adjusted earnings exceeding consensus forecasts, indicating a healthy financial condition [7] - The automotive segment grew by 10%, while the communications segment surged by 45% [6] Guidance and Forecast - The company provided guidance for a 2.75% year-over-year growth, aligning with analyst consensus, with potential for outperformance [8] - The 12-month stock price forecast is set at 48.33, representing a 32.82% upside from the current price of 36.39[5]MarketPositionandTrends−GlobalFoundriesiswell−positionedtobenefitfromthesemiconductormarket′ssearchforalternativesources,withfabslocatedinSingapore,Europe,andtheU.S.,andongoingexpansionintheU.S.[9]−ThestockiscurrentlyratedasaModerateBuy,butthereisatepidinitialanalystreactionwithsomepricetargetsbeinglowered[2][10]TechnicalOutlook−ThetechnicalanalysissuggeststhatGFSstockreacheditsbottominearlyAprilandisbeginningtorebound,althoughitremainsbelowcriticalresistancelevels[12]−Apricemovementabove36.39 [5] Market Position and Trends - GlobalFoundries is well-positioned to benefit from the semiconductor market's search for alternative sources, with fabs located in Singapore, Europe, and the U.S., and ongoing expansion in the U.S. [9] - The stock is currently rated as a Moderate Buy, but there is a tepid initial analyst reaction with some price targets being lowered [2][10] Technical Outlook - The technical analysis suggests that GFS stock reached its bottom in early April and is beginning to rebound, although it remains below critical resistance levels [12] - A price movement above 37.50 could signal a bullish trend, potentially pushing the stock into the 40to40 to 45 range [13]