Key Takeaways
- GFS shares experienced an approximately 12% increase following market open on May 21, 2026, driven by the unveiling of a quantum computing business unit.
- The company received a letter of intent for $375 million in federal funding from the U.S. Department of Commerce, coupled with an approximate 1% government equity position.
- This award is included in a comprehensive $2 billion quantum computing initiative distributed among nine technology firms, with IBM claiming the lion’s share at $1 billion.
- Wall Street analysts responded favorably: Evercore ISI increased their price target to $85 with an Outperform rating, while Susquehanna elevated their target from $100 to $125 (Positive).
- Competing quantum-focused companies experienced even more dramatic gains — D-Wave climbed 27%, Rigetti advanced 28%, and Infleqtion skyrocketed 42%.
Shares of GlobalFoundries (GFS) were changing hands at approximately $78.88 during pre-market hours, reflecting an 11.4% increase, before extending gains to around 12% following the May 21, 2026 market open.
Driving the rally: GlobalFoundries announced the creation of Quantum Technology Solutions, a dedicated business division, while simultaneously securing a letter of intent for $375 million in federal support via the CHIPS and Science Act.
This funding represents a portion of a larger $2 billion government commitment distributed across nine quantum computing enterprises. IBM emerged as the primary recipient, slated to collect $1 billion — capital it intends to combine with internal resources to establish a U.S.-based quantum chip manufacturing facility.
The $375 million allocated to GlobalFoundries will support expansion of its quantum computing hardware production capabilities. Additionally, the federal government plans to acquire approximately 1% equity ownership in the chipmaker through a separate arrangement.
This approach aligns with recent administration strategy. Beginning in early 2025, federal authorities have acquired ownership stakes in multiple strategic technology corporations, including a 10% position in Intel.
Wall Street Raises Expectations
The quantum initiative announcement arrived amid already favorable analyst sentiment. Evercore ISI upgraded its GFS price objective to $85 while maintaining an Outperform designation, citing strengthening data center demand. Susquehanna demonstrated even greater confidence, boosting its target to $125 from a previous $100, accompanied by a Positive rating.
The stock surpassed its previous 52-week peak of $76.98 during pre-market activity.
GlobalFoundries had already delivered robust first-quarter results, posting $1.634 billion in total revenue. The semiconductor manufacturer also recently announced its inaugural quarterly dividend of $0.12 per share and established a plan to distribute as much as 50% of adjusted free cash flow to shareholders.
The Communications Infrastructure and Data Center business segment emerged as a particular bright spot, generating $230 million in revenue — representing 32% year-over-year growth — and extending its double-digit expansion streak to six consecutive quarters.
Quantum Specialists Outperform
While GlobalFoundries shares advanced approximately 12%, smaller pure-play quantum computing recipients in the funding package demonstrated significantly larger percentage gains.
D-Wave Quantum jumped 27%. Rigetti Computing advanced 28%. Infleqtion surged 42%.
IBM, despite receiving the most substantial individual award, saw shares appreciate just over 4.6% after market open.
The funding agreements remain pending finalization, 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 momentum provided additional support, with the S&P 500 advancing 1.1%, the Dow Jones rising 1.3%, and the Nasdaq climbing 1.5% during the trading session.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
