GlobalFoundries Hits a 52-Week High After Launching a Quantum Computing Push

MarketDash

May 21, 5:05 PM • 1 hour ago

The chipmaker is getting a $375 million boost from the U.S. government to scale quantum manufacturing, and the stock is responding.

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GlobalFoundries (GlobalFoundries (GFS)) is having a moment. The chipmaker announced Thursday that it's launching a new business unit called Quantum Technology Solutions, aimed at scaling up U.S. quantum computing manufacturing. The news sent shares flying 11.47% to $78.91, hitting a fresh 52-week high.

So what exactly is GlobalFoundries going to make? The company says it will manufacture quantum processor units, cryogenic control chips, advanced packaging, and superconducting interconnects — all the stuff you need to build quantum systems that can actually do something useful at scale.

And the U.S. government is putting real money behind it. The Department of Commerce signed a letter of intent to award GlobalFoundries $375 million to support the expansion. In return, the department gets a strategic equity stake of about 1% in the company. Commerce Secretary Howard Lutnick said the investment would help strengthen domestic quantum technology leadership and create high-paying U.S. jobs.

GlobalFoundries isn't going it alone. It's partnering with quantum computing companies like PsiQuantum Corp., Quantinuum, and Diraq, and it has support from some of the biggest names in tech: Alphabet's (Alphabet (GOOGL)) Google Quantum AI, Microsoft (Microsoft (MSFT)), and NVIDIA (NVIDIA (NVDA)).

Technical Analysis

The stock has been on a tear over the past year, up 87.52%. It's trading well above its key moving averages — 13.9% above the 20-day simple moving average (SMA) and a whopping 85.1% above the 200-day SMA. That's a lot of distance, which can be both a sign of strength and a reason to be cautious.

The moving average convergence divergence (MACD) is currently below its signal line, which suggests that the momentum might be fading a bit. It's not a sell signal, but it's worth watching. If the stock can reclaim that baseline, the momentum could pick back up.

Here are the key levels to watch:

Key Resistance: $76.98 — This was the previous 52-week high, and now that it's been broken, it could become support.
Key Support: $68.34 — This aligns with the 20-day SMA, which could act as a cushion if the stock pulls back.

Earnings & Analyst Outlook

GlobalFoundries is expected to report its next quarterly results on August 4, 2026. Analysts are estimating earnings per share of 40 cents, down from 42 cents a year ago, but revenue is expected to rise to $1.76 billion from $1.69 billion.

The stock carries a Buy rating from analysts, with an average price target of $70.42. But here's the thing: the stock is already trading above that at $78.91. That doesn't mean it's overvalued — analysts have been raising their targets recently. Evercore ISI Group raised its forecast to $85 on May 19, Susquehanna went to $125 on May 11, and UBS bumped its neutral rating to $77 on May 6. So the average target might be catching up.

MarketDash Edge Rankings

Here's how GlobalFoundries stacks up on the MarketDash Edge scorecard, which compares it to the broader market:

Value Rank: 51.01 — Moderate valuation relative to peers.
Growth Rank: 71.81 — Strong growth potential.
Momentum Rank: 94.94 — The stock is significantly outperforming the market.

The verdict: GlobalFoundries has a growth-heavy profile with powerful momentum. That's a good combination for continued upside, but the moderate value rank suggests investors should keep an eye on valuation as the stock climbs.