GlobalFoundries (GFS) Stock Rockets 12% on $375M Quantum Computing Grant

Key Highlights

Table of Contents

GFS stock climbed approximately 12% following market opening on May 21, 2026, driven by the announcement of a quantum computing business unit.
The company received a letter of intent from the U.S. Department of Commerce for $375 million in federal funding, accompanied by an equity position of approximately 1%.
This award represents part of a larger $2 billion federal quantum computing initiative distributed among nine companies, with IBM securing the top allocation of $1 billion.
Wall Street firms responded positively: Evercore ISI boosted its price target to $85 with an Outperform rating, while Susquehanna increased its target from $100 to $125 (Positive rating).
Other quantum-focused companies experienced more dramatic gains — D-Wave jumped 27%, Rigetti climbed 28%, and Infleqtion soared 42%.

Shares of GlobalFoundries (GFS) reached approximately $78.88 during pre-market trading on May 21, 2026, representing an 11.4% increase, before extending gains to roughly 12% following the opening bell.

GLOBALFOUNDRIES Inc., GFS

The surge followed two major announcements: the establishment of Quantum Technology Solutions, a new business division, and confirmation of a $375 million funding letter of intent from the federal government via the CHIPS and Science Act.

This funding allocation is embedded within a comprehensive $2 billion federal commitment to nine quantum computing enterprises. IBM emerged as the primary recipient, slated to collect $1 billion — funds the company intends to combine with internal capital to construct a U.S.-based quantum chip manufacturing facility.

The $375 million designated for GlobalFoundries will support expansion of its quantum computing hardware production capabilities. As part of a supplementary arrangement, the federal government will acquire approximately 1% equity ownership in the semiconductor manufacturer.

This strategy aligns with the administration’s established approach. Beginning in early 2025, federal authorities have acquired equity stakes in multiple strategic technology companies, including a 10% ownership position in Intel.

Wall Street Raises Price Targets

The quantum initiative announcement arrived during a period of existing momentum. Evercore ISI elevated its GFS price objective to $85 while maintaining its Outperform designation, citing accelerating data center demand. Susquehanna adopted a more bullish stance, raising its target to $125 from the previous $100, accompanied by a Positive rating.

During pre-market hours, the stock surpassed its previous 52-week peak of $76.98.

GlobalFoundries had already delivered strong first-quarter results, posting $1.634 billion in total revenue. The company also announced its inaugural quarterly dividend of $0.12 per share and outlined plans to distribute up to 50% of adjusted free cash flow to shareholders.

The Communications Infrastructure and Data Center division proved particularly robust, generating $230 million in revenue — a 32% year-over-year increase — representing the sixth consecutive quarter of double-digit expansion.

Quantum Specialists Post Bigger Gains

While GFS advanced approximately 12%, smaller quantum computing companies included in the funding program recorded substantially larger percentage increases.

D-Wave Quantum advanced 27%. Rigetti Computing gained 28%. Infleqtion surged 42%.

IBM, despite receiving the largest individual grant, saw its shares rise just over 4.6% after market open.

The agreements remain preliminary, and the Commerce Department had not released an official statement as of Thursday morning. D-Wave disclosed to the Wall Street Journal that its complete $100 million allocation would take the form of an equity investment, with Rigetti and Infleqtion indicating comparable structures.

Broader market conditions provided additional support, with the S&P 500 advancing 1.1%, the Dow gaining 1.3%, and the Nasdaq climbing 1.5% during the session.

✨ Limited Time Offer