Key Highlights
- Shares of GlobalFoundries climbed approximately 12% at market open on May 21, 2026, following the unveiling of its quantum computing business unit.
- The company received a letter of intent from the U.S. Department of Commerce for $375 million in funding, accompanied by an equity position of roughly 1%.
- This award is part of a $2 billion federal quantum computing initiative distributed among nine firms, with IBM capturing the lion’s share at $1 billion.
- Wall Street analysts responded with upgraded targets: Evercore ISI boosted its outlook to $85 (Outperform), while Susquehanna increased its target to $125 from $100 (Positive).
- Smaller quantum-focused companies experienced even steeper rallies — D-Wave climbed 27%, Rigetti advanced 28%, and Infleqtion soared 42%.
Shares of GlobalFoundries (GFS) traded at approximately $78.88 during pre-market hours on May 21, 2026, representing an 11.4% increase, before extending gains to around 12% following the opening bell.
The driving force: GlobalFoundries introduced its Quantum Technology Solutions division and secured a letter of intent for $375 million in federal support via the CHIPS and Science Act.
This funding represents a portion of a comprehensive $2 billion government commitment to nine quantum computing enterprises. IBM emerged as the primary recipient, positioned to receive $1 billion — funds the tech giant intends to combine with internal capital to establish a U.S.-based quantum chip manufacturing facility.
GlobalFoundries’ allocation of $375 million targets the expansion of its quantum computing component production capabilities. Additionally, the federal government will acquire approximately 1% ownership in the semiconductor manufacturer through a separate arrangement.
This approach reflects a consistent strategy from the current White House. Beginning in early 2025, federal authorities have secured ownership stakes in multiple strategic technology companies, including a 10% position in Intel.
Wall Street Raises Price Targets
The quantum computing initiative came amid already favorable sentiment. Evercore ISI elevated its GFS price target to $85 while maintaining its Outperform designation, citing accelerating data center demand. Susquehanna took a more aggressive stance, pushing its target to $125 from $100 with a Positive rating.
Shares surpassed the previous 52-week peak of $76.98 during pre-market activity.
GlobalFoundries had already delivered a strong first quarter, generating $1.634 billion in revenue. The chipmaker also announced its inaugural quarterly dividend of $0.12 per share and committed to distributing as much as 50% of adjusted free cash flow to shareholders.
Its Communications Infrastructure and Data Center division particularly impressed, delivering $230 million in revenue — a 32% year-over-year increase — representing the sixth consecutive quarter of double-digit expansion.
Quantum Peers Post Stronger Gains
While GFS advanced roughly 12%, smaller quantum computing companies included in the funding package recorded significantly larger percentage gains.
D-Wave Quantum surged 27%. Rigetti Computing posted a 28% gain. Infleqtion rocketed 42% higher.
IBM, despite receiving the largest individual award, saw its shares increase just over 4.6% after market open.
The agreements remain preliminary, and the Commerce Department had not released an official statement as of Thursday morning. D-Wave disclosed to the Wall Street Journal that its complete $100 million allocation would take the form of an equity investment, with Rigetti and Infleqtion reporting comparable structures.
Broader market strength provided additional support, with the S&P 500 gaining 1.1%, the Dow advancing 1.3%, and the Nasdaq rising 1.5% during the trading session.
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