GlobalFoundries (GFS) is expected to benefit from a multidecade earnings stream after being selected as technology provider and operator for two new chip-manufacturing plants that use 300-millimeter wafers at its campus in Malta, New York, under a US-Japan trade agreement, Wedbush Securities said Thursday in a report.
The structure allows the company to add meaningful US capacity and earn a profit per wafer, comparable to a self-funded build without taking on the associated capital or utilization risk, the report said.
GlobalFoundries is targeting accretion of about 30 basis points to 50 basis points to gross margins and $0.10 to $0.15 to earnings per share in 2027 from the first plant, the report said.
Wedbush said the new government-driven capacity raises a key question: whether adding at least one large plant may prematurely disrupt what otherwise appears to be a favorable supply-and-demand setup for mature manufacturing, given rising needs from optics, data-center power systems, physical AI, and consumer devices.
Wedbush reiterated its neutral rating on GlobalFoundries stock and its $72 price target.
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