GlobalFoundries Inc. GFS shares rallied 7.3% in the last trading session to close at $58.76. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 27.1% gain over the past four weeks.
The optimism surrounding the stock can be attributed to strong momentum in GlobalFoundries’ communications infrastructure and data center business, driven by rising demand for silicon photonics, optical networking and satellite communications. Further, GlobalFoundries is benefiting from record design win momentum, with over 500 design wins in 2025 and expanding opportunities in silicon photonics, which is expected to nearly double again in 2026.
This company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +2.9%. Revenues are expected to be $1.62 billion, up 2.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For GlobalFoundries, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GFS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
GlobalFoundries is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Ambarella AMBA, finished the last trading session 1.8% higher at $59.28. AMBA has returned 7.8% over the past month.
For Ambarella, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.11. This represents a change of +57.1% from what the company reported a year ago. Ambarella currently has a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).