10 Stocks Hurting From DeepSeek AI News That Could Turn Into Multibaggers

5. Global Foundaries Inc. (NASDAQ:GFS)

Global Foundaries Inc. is a semiconductor foundry that develops a wide range of semiconductor chips by using advanced technologies. It produces mobile application processors, network processors, power management units, and other semiconductor devices.

The company’s stock is down over 3% in pre-market trading. A disappointing year of trading has seen the stock down 30% mainly due to concerns about its growth. Apart from the Smart Mobile Devices segment, growth prospects are limited for the company. However, it continues to be a key beneficiary of the CHIPS ACT and with the US government about to double down on AI spending through Project Stargate, there could be more money flowing through the company.

One weakness of the company is that it struggles to compete when it comes to advanced nodes, meaning a lot of future growth in data centers may be out of reach for the company. GFS operates in the 12nm technology market while most of the industry operates in a range from 5nm to 16nm. Most of this downside could already be priced into the stock though.