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.

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

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.

GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is a leading player in the broader AI space because it enables the production of specialized AI processors and plays a key role in the AI hardware supply chain.

While we acknowledge the potential of GFS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GFS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.