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GlobalFoundries Inc: Strategic Focus and Partnerships Drive Buy Rating Amid Growth Opportunities

DBS analyst Jim Hin Kwong Au has maintained their bullish stance on GFS stock, giving a Buy rating yesterday.

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Jim Hin Kwong Au has given his Buy rating due to a combination of factors including GlobalFoundries Inc’s strategic focus on differentiated semiconductor technologies and its robust design-win momentum. The company emphasizes advanced technologies such as 22FDX® and silicon photonics, which position it well in high-growth sectors like automotive, IoT, and data centers. This strategic positioning is further strengthened by partnerships, such as with indie Semiconductor, targeting the expanding automotive radar market.
Additionally, GlobalFoundries Inc’s extensive global manufacturing footprint enhances its market position by providing regional scale and supply chain resilience. Investments under the CHIPS Act in the U.S. and expansions in Europe and Asia bolster its capacity and align with customer localization strategies. Despite some concerns about potential oversupply due to consumer electronics demand fluctuations, the company’s strategic investments and strong customer relationships, including with Qualcomm, support its long-term growth prospects.

According to TipRanks, Hin Kwong Au is a 4-star analyst with an average return of 7.6% and a 52.29% success rate. Hin Kwong Au covers the Technology sector, focusing on stocks such as BYD Electronic (International) Co, Sunny Optical Technology (Group) Co, and AAC Technologies Holdings.

In another report released yesterday, Evercore ISI also reiterated a Buy rating on the stock with a $43.00 price target.

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