Shares of GlobalFoundries (NASDAQ:GFS) and IBM (NYSE:IBM) are down so far in today’s trading session. This comes after GlobalFoundries filed a lawsuit against IBM, accusing the company of illegally sharing intellectual property and trade secrets after IBM sold its microelectronics business to GlobalFoundries in 2015.
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The semiconductor manufacturer claims that IBM shared information with Japanese semiconductor consortium Rapidus and Intel (NASDAQ:INTC), resulting in IBM potentially receiving licensing income and other benefits.
In its complaint, GlobalFoundries seeks compensatory and punitive damages and an injunction to prevent IBM from further disclosing and using its trade secrets. The company also accuses IBM of targeting GlobalFoundries’ engineering talent at its manufacturing facility near the Albany NanoTech Complex.
Turning to Wall Street, analysts expect higher share prices from both stocks. However, they currently prefer GFS over IBM stock, as they anticipate over 28% upside potential, thanks to an average price target of $82 per share.
