30 Best and Worst Data Center Stocks

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19. GlobalFoundries Inc. (NASDAQ:GFS)

Upside Potential: 19%

Number of hedge funds: 22

GlobalFoundries Inc. (NASDAQ:GFS) is a U.S.-based semiconductor foundry that manufactures integrated circuits for various markets, including automotive, mobile devices, Internet of Things (IoT), data centers, and communications infrastructure. The company is advantageously positioned within the North American semiconductor ecosystem, especially given recent escalations in chip export restrictions and U.S. efforts to bring production closer to home.

GlobalFoundries Inc. (NASDAQ:GFS) offers a portfolio of differentiated solutions in the data center communications and infrastructure market, addressing bandwidth constraints and maximizing storage efficiency. Its GF Fotonix platform enhances data movement efficiency and reduces power consumption. With the surge in data traffic between the edge and data centers, the company believes its analog expertise is essential to meeting the needs of data center and infrastructure providers.

The company is making substantial investments to significantly enhance its production capacity and advance its technology development efforts within the U.S. In November 2024, the company secured $1.5 billion in government funding under the CHIPS and Science Act, contributing to its broader domestic production expansion plan, totaling $13 billion over the next decade. In mid-January 2025, GlobalFoundries Inc. (NASDAQ:GFS) announced a plan to create an advanced packaging and photonics center within its New York manufacturing facility. The overall investment is expected to be $575 million, with an additional R&D investment of $186 million over the next 10 years.

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