Citi Updates GlobalFoundries (GFS) Valuation Model to 2027 Estimates From 2026

GlobalFoundries Inc. (NASDAQ:GFS) is one of the new stocks on the rise. On January 15, following a transfer of coverage, Citi raised its price target on GlobalFoundries to $42 from $35 with a Neutral rating on the shares. As part of this update, the firm rolled forward its valuation model to 2027 estimates, shifting from 2026.

In other news, on January 14, GlobalFoundries Inc. (NASDAQ:GFS) executed a definitive agreement to acquire Synopsys Inc.’s (NASDAQ:SNPS) ARC Processor IP Solutions business, including its engineering and design teams. This is a strategic move designed to accelerate the physical AI roadmaps for both GF and MIPS while strengthening capabilities in custom silicon solutions.

The acquisition encompasses the ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU product lines, as well as application-specific instruction set processor tools like ASIP Designer and ASIP Programmer. Upon closing, these assets will be integrated with MIPS, which is a GlobalFoundries company, to provide a processor IP suite tailored for physical AI. This expanded offering is intended to enhance customer engagement through IP licensing and software, enabling a faster time-to-market for GF’s customers.

GlobalFoundries Inc. (NASDAQ:GFS) is a semiconductor foundry that provides a range of mainstream wafer fabrication services and technologies worldwide.

While we acknowledge the potential of GFS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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