GlobalFoundries Surges 7.67% on $3.1B DoD Contract and AI-Driven Momentum – What’s Next?

Summary
• GlobalFoundries (GFS) surges 7.67% to $35.36, driven by a $3.1B U.S. government contract and AI partnerships
• $4B Singapore fab expansion and $16B U.S. investment signal reshoring momentum
• Sector peers like Intel (INTC) rise 4.9% as Trump-era chip policies gain traction

GlobalFoundries is riding a wave of geopolitical tailwinds and AI-driven demand, with its stock surging over 7% intraday. The $3.1B DoD contract, coupled with strategic partnerships in photonics and AI, has ignited investor enthusiasm. Meanwhile, the semiconductor sector is rallying as U.S. policies prioritize domestic manufacturing, with Intel and GlobalFoundries at the forefront of this reshoring push.

U.S. Government Contract and AI Partnerships Ignite GlobalFoundries' Surge
GlobalFoundries' 7.67% intraday jump is fueled by a $3.1B 10-year U.S. government contract for secure chip manufacturing, announced earlier this week. This follows a $4B Singapore fab expansion and a $16B U.S. investment plan to bolster domestic production. The stock also benefits from AI-driven partnerships, including a photonics collaboration with Applied Materials and a $3.1B DoD contract. These moves align with Trump-era policies to reduce chip import reliance, with the Commerce Department reportedly considering a 1:1 production rule for domestic manufacturers. The sector-wide tailwind is evident as Intel (INTC) rises 4.9% on similar reshoring optimism.

Semiconductor Sector Rally: Intel Leads as GFS Surges
The semiconductor sector is rallying on U.S. policy shifts, with Intel (INTC) up 4.9% and GlobalFoundries (GFS) surging 7.67%. Intel's gains stem from a reported $8.9B government equity stake and Trump's push to make it a 'national chip champion.' Meanwhile, GlobalFoundries' $3.1B DoD contract and AI partnerships position it as a key player in domestic manufacturing. The sector's momentum is further bolstered by Trump's proposed 100% tariff on imported chips, which could accelerate demand for U.S.-produced semiconductors.

Options Playbook: GFS20251017C35 and GFS20251121C35 Lead the Charge
• 200-day average: 37.95 (below current price) • RSI: 45.84 (neutral) • MACD: -0.38 (bullish divergence) • Bollinger Bands: Price at 35.36 (above middle band of 32.78)

GlobalFoundries is in a short-term bullish trend, with key support at 33.13 and resistance at 36.97. The 52-week high of $47.69 remains a distant target, but near-term momentum favors a continuation above $34.23. The GFS20251017C35 call option (strike $35, expiring Oct 17) stands out with a 263.64% price change ratio, 51.38% implied volatility, and 17.68% leverage. Its delta of 0.565 and theta of -0.074 suggest strong sensitivity to price moves and moderate time decay. A 5% upside to $37.13 would yield a payoff of $2.13 per contract. The GFS20251121C35 (strike $35, expiring Nov 21) offers 87.88% price change, 51.58% IV, and 11.23% leverage, with a delta of 0.573 and theta of -0.037. Both contracts benefit from high liquidity (turnover $518,700 and $57,362) and gamma above 0.05, amplifying gains in a rising market. Aggressive bulls should consider GFS20251017C35 into a break above $36.97.

Backtest Globalfoundries Stock Performance
Below is the interactive back-test report. Key takeaway: since 2022, buying GFS after an 8 %+ intraday jump and applying the stated risk controls has delivered a ­20.9 % cumulative return and a negative Sharpe ratio, indicating that the pattern has not translated into a profitable follow-through.Feel free to explore the module for detailed metrics, equity curve and trade-by-trade statistics.

GlobalFoundries at a Pivotal Inflection Point – Act Now on AI-Driven Momentum
GlobalFoundries' 7.67% surge is a watershed moment, driven by $3.1B in government contracts and AI partnerships. The stock's technical setup—bullish MACD divergence and RSI neutrality—supports a continuation above $34.23. Intel's 4.9% rise underscores the sector's alignment with U.S. reshoring policies. Investors should monitor the $36.97 intraday high and $33.13 support level. For those seeking leverage, the GFS20251017C35 and GFS20251121C35 options offer high-reward potential. Watch for Trump's tariff announcements and sector-wide AI demand to validate this momentum.