GlobalFoundries Is at the Right Place, at the Right Time, BofA Says

By Benzinga
November 23, 2021 Updated: November 23, 2021

GlobalFoundries Inc. is well-positioned with only a 10 percent share of an addressable market opportunity estimated at $70 billion, across smartphone devices, Internet of things, automotive and data center, according to Bank of America (BofA) Securities.

GlobalFoundries Analyst

Vivek Arya initiated coverage of GlobalFoundries with a Buy rating and a price target of $88.

GlobalFoundries Thesis

The company has long-term proprietary agreements worth around $20 billion, which gives strong visibility and pricing power, Arya said in the initiation note.

GlobalFoundries has “a Tier-1 base of customers,” including Qualcomm Inc., NXP Semiconductors NV, Analog Devices Inc., and Advanced Micro Devices Inc., the analyst added.

“Emerging multi-year partnerships with automakers (Ford) and Tier-1s (Bosch) to address structural supply issues” as well as “lower capital intensity, stronger FCF over time due to deliver proprietary products on lower-cost/lagging edge equipment” are the other positives, Arya mentioned.

Price Action

Shares of GlobalFoundries had risen by 3.03 percent to $63.99 on Monday.

By Priya Nigam

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.