Sometimes you wonder what it takes to please an investor anymore. Chip stock GlobalFoundries (NASDAQ:GFS) just announced a hefty new contract from the Department of Defense. Despite this, it was only enough to elicit modest applause and a little yawning from investors, who sent shares up just over 1% in Thursday morning’s trading session.
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The new contract, valued at $3.1 billion over the next 10 years, calls for GlobalFoundries to produce semiconductors in the United States to help ensure enough supply is on hand. Payments start now, actually, with a $17.3 million immediate payout for the month of September. This isn’t the first such contract, either; the DoD has engaged in two other contracts just like this with GlobalFoundries previously.
Moreover, that’s not the only major contract that GlobalFoundries landed recently. It’s also picked up some work with General Motors (NYSE:GM), though that might not be much help until the strikes are over.
Is GlobalFoundries a Good Investment?
Analysts are on board with GlobalFoundries, too. With eight Buy ratings and two Holds, GlobalFoundries stock is considered a Strong Buy. Further, with an average price target of $75.97, GlobalFoundries stock offers investors a 31.1% upside potential.
