The U.S. Government Is Preparing to Offload Over 9 Million GlobalFoundries Shares. How You Should Play GFS Stock in Response.

The U.S. government is preparing to sell up to 9.9 million shares of GlobalFoundries (GFS), as per a recent filing. This follows a deal struck in July, where the government received a 1% equity stake in the semiconductor firm. The sale is tied to investments in quantum computing and silicon photonics research, with the government aiming to fund domestic chip manufacturing.

GlobalFoundries CEO Tim Breen emphasizes the company's strategic focus on AI data centers and resilient supply chains, noting the importance of government partnerships in accelerating capital spending. The stock currently has a moderate buy rating, with a potential upside of 65% from current levels.