Christian Fromhertz
CEO of Tribeca Trade Group, Momentum Trader, Ex-BAML ETF Director
GlobalFoundries is the preferred strategic pick among recent momentum leaders, while D-Wave and Rigetti are much more speculative. No one can compete with TSMC, which would already be the most valuable company if China were not a cloud over it, but price matters: GlobalFoundries is a smaller company with momentum, up about fourfold this year. x.com x.com x.comÂ
GlobalFoundries' $375M government contract to develop quantum products shows the advantage of not being a pure play. Its established business already lets it fund expansion without dilution while its higher-margin photonics business is set to double, so the stock can keep grinding higher as it proves itself the co-packaged optics foundry leader. x.comÂ
GlobalFoundries looks expensive against its earnings. It trades at 36 times trailing and 17 times next year's earnings, while chipmakers usually get 18 times. Applying 18 times to mid-cycle EPS of $1.41, give or take 12%, gives a fair value of $22.29-28.36, so the stock sits 58% above the top of that range; trailing and forward readings differ widely. This is a valuation read only, with no fundamental work behind it. x.comÂ
GlobalFoundries is heavily underrated: it will be the leading quantum foundry, and no one is pricing it as a robotics foundry. It should win a large slice of the robotics and IoT market, with motor controls, sensor fusion and communication microcontrollers running on its 22nm FDX process. It is the preferred pick among quantum plays. x.com x.comÂ
Reported government-backed investment in GlobalFoundries' manufacturing makes it the next core holding candidate. A quoted Insiderwave post says the US government will add $955 million to its stake, taking its total investment to $1.63 billion, and Japan will put $21 billion into New York semiconductor facilities that GlobalFoundries would run. x.comÂ
GlobalFoundries looks like a value trap next to TSMC's growth, as a comparison chart illustrates. x.comÂ
GlobalFoundries' Xanadu partnership strengthens its position as a shared quantum-manufacturing platform across architectures. Its Malta fab will develop ultra-low-loss SiN photonics and superconducting nanowire detectors, alongside up to $375M in US quantum R&D funding. It ranked first of 23 companies in the earlier quantum map; production volumes and revenue remain undisclosed, with process transfer and yield validation still ahead. x.comÂ
GlobalFoundries is entering an earnings growth cycle as foundry capacity runs short. Chinese foundries' price per lithography exposure has doubled from 25 to 50 dollars, a sign the industry can't keep up, so GlobalFoundries should benefit too. Most military weapons chips are made at GlobalFoundries, not Intel. The near-term negative is selling pressure from Mubadala, which a reply says will keep selling down to 51%, and from ARM fund redemptions, which is why the stock is held at this level. … Show more
GlobalFoundries' new silicon germanium capacity deal with Marvell doesn't fix its position, because its SiGe is mediocre next to Tower's, though the gap is smaller than in silicon photonics. Semtech, and likely Macom, use Tower. x.com x.comÂ
GlobalFoundries is a 2027-2028 optical rerating story, not a month-and-a-half trade in 2026. It trades at about 11.5x forward earnings ending 2028 and 7.5x longer term. @jusmentrades cites a ~$76 average Wall Street target, a raised 50-60% growth outlook for data center and communications on silicon photonics and SiGe for AI optical networking, a first dividend and CHIPS Act support. x.comÂ