GlobalFoundries shares jumped decisively in pre-market trading, rising 11.4% to reach $78.88 after the company revealed a focused push into quantum computing and reported a major U.S. government funding commitment.
The company said it has created Quantum Technology Solutions, a new business unit aimed at scaling the manufacturing capacity needed for the quantum computing sector to reach utility-scale systems. Supporting that launch, GlobalFoundries disclosed a letter of intent from the U.S. Department of Commerce for $375 million and noted that the funding comes alongside a strategic equity stake.
The $375 million commitment is part of a larger $2 billion package that the U.S. government is directing to nine companies in the quantum-computing space. Those agreements include government equity stakes, according to the company statement.
GlobalFoundries emphasized its decade-plus partnership with the U.S. government and its sustained investments in cryogenic CMOS, advanced packaging, and materials science. The company framed these capabilities as the industrial layer on which quantum developers and associated innovators can build, signaling its move into the next wave of high-performance computing.
The timing of the quantum announcement coincides with a spate of analyst upward revisions. Evercore ISI increased its price target on the shares to $85 and kept an Outperform rating, citing greater demand in data centers. Susquehanna lifted its price target to $125 from $100 while maintaining a Positive rating.
Market conditions provided an accommodating backdrop for the stock’s advance. The S&P 500 was up 1.1%, the Dow Jones rose 1.3%, and the NASDAQ climbed 1.5% in early trading, factors the company said contributed to the constructive environment.
The quantum push builds on recent operational milestones at GlobalFoundries. In the first quarter the company reported $1.634 billion in revenue and offered solid guidance. At a recent Investor Day it announced a first-ever quarterly dividend of $0.12 and introduced a framework to return up to 50% of adjusted free cash flow to shareholders.
Separately, the Communications Infrastructure and Data Center segment was highlighted as a continued growth engine. That business recorded its sixth straight quarter of double-digit year-over-year revenue growth, producing $230 million in revenue, up 32% from the prior year.
Taken together, the creation of a dedicated quantum business unit, the Department of Commerce letter of intent for $375 million, bullish analyst actions, and recent company performance metrics combined to propel GlobalFoundries above its prior 52-week high of $76.98 in pre-market trading.
Investors and market participants reacted to this cluster of developments by bidding the shares higher in early sessions, reflecting the market’s assessment of the company’s positioning within a government-backed effort to bolster domestic quantum chip development and related supply chains.