Goldman Sachs Begins coverage of GLOBALFOUNDRIES (GFS) Stock with a Neutral Rating

GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is one of the Most Promising AI Stocks to Buy Now. Goldman Sachs began coverage of the company’s stock with a “Neutral” rating and a price objective of $40, as reported by The Fly. The firm initiated on the US semiconductor capital equipment, storage, and foundry sectors with a balanced view. The semiconductor capital equipment industry remains in mid-cycle, and headwinds and tailwinds continue to create relatively stable revenue dynamics, added the firm’s analyst. According to Goldman Sachs, China exhibits more opportunity than threat for companies.

A technician holding a complex printed circuit board with microcontrollers, showing the company's expertise in powering devices.

GLOBALFOUNDRIES Inc. (NASDAQ:GFS) announced plans to invest $16 billion to expand its semiconductor manufacturing and advanced packaging capabilities. This investment is a response to strong growth in AI. The AI revolution continues to drive strong, durable demand for the company’s technologies that enable futuristic datacenters, including GLOBALFOUNDRIES Inc. (NASDAQ:GF)’s leading silicon photonics and GaN for power applications. GLOBALFOUNDRIES Inc. (NASDAQ:GFS) also announced a definitive agreement to acquire MIPS, which is a leading supplier of AI and processor IP. MIPS will be bringing a strong heritage of delivering efficient, scalable compute IP, which is tailored for performance-critical applications and strategically aligns with the increasing demands of AI platforms.