15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip

2. GlobalFoundries Inc. (NASDAQ:GFS) 

GlobalFoundries Inc. operates as a semiconductor foundry that offers a variety of mainstream wafer fabrication services & technologies. The company develops different devices such as mobile application processors, network processors, microcontrollers, baseband processors, and other devices. The stock is up 11.27% in the last week against the S&P 500’s 1.13% gains.

The stock is gaining on analyst optimism as Needham upgraded the stock from Hold to Buy last week, assigning a price target of $50, a 16% upside from here on. Needham analysts believe the cyclical downturn is about to end for the semiconductor industry and a return to YoY growth is on the horizon:

Not only do we forecast a return to Y/Y growth in 2025 but also we see meaningful gross margin expansion through the year. We also believe GFS may benefit from increasing geopolitical tensions between the U.S. and China as customers onshore semiconductor manufacturing.

The bullish thesis backed by geopolitical tensions is likely to drive the stock prices higher as America focuses on Project Stargate and other ventures to keep China at bay in AI. It is also well-supported by the strong data center and automotive markets in 2025.