On August 8, GLOBALFOUNDRIES Inc. rose 5.78% in regular trading, trading at $53.37/share, with turnover of $140 million. The rebound follows a research note from Wedbush Securities raising its earnings outlook for the company, catalyzing a reversal of the prior session's post-earnings selloff.

Wedbush stated that GLOBALFOUNDRIES met higher buy-side expectations in Q2, with stronger-than-expected growth in Communication Infrastructure, Datacenter, and intellectual property businesses. Revenue and non-IFRS gross margins exceeded the high end of the company's prior guidance. The firm raised its full-year adjusted earnings estimate to $1.93 per share, citing improving pricing discussions with customers for next year and a favorable product mix shift toward higher-margin segments.

The stock had declined over 5% on August 5 despite reporting Q2 adjusted EPS of $0.46 versus the $0.44 consensus and revenue of $1.786 billion versus $1.765 billion expected, as positive results had been largely priced in following a 5.6% rally the prior session. The current move represents a technical rebound as the sell-the-news pressure dissipates.

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