Semiconductor major GlobalFoundries (NASDAQ:GFS) is planning to invest nearly $8 billion in its chip manufacturing facility in Germany. The investment is aimed at doubling output at the plant by the end of 2030.
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Further, GFS is also looking to receive government support for the plant. Taiwan Semiconductor (NYSE:TSM), its competitor, is also looking to land government support for its envisaged plant in Germany. Reportedly, TSM will receive nearly $5.5 billion in government aid for its German facility.
Earlier this month, GFS opened a $4 billion facility in Singapore in anticipation of rising chip demand. GFS is the third-biggest chipmaker by top-line globally, and the company expects demand for its chips to double over the next 10 years. While Singapore remains a major chip production hub, Europe is also seeing a steady stream of new investments in chip manufacturing. This dynamic is a result of the world slowly weaning itself away from its dependence on China for advanced technological production.
What Is the Target Price for GFS Stock?
Overall, the Street has a consensus price target of $75.97 on GFS, alongside a Strong Buy consensus rating. This implies a hefty 31.5% potential upside in the stock.
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