GlobalFoundries (GFS) faces an elongated timeframe around when catalysts like an improved end market fundamentals might play out, Wedbush said in a Wednesday note.

The brokerage said it sees near-term risk to consumer electronic device builds and that its recent checks in Taiwan have suggested that industrial and auto demand remains "relatively weak with no anticipation of any near-term recovery."

Wedbush further said that 50% of GlobalFoundries' revenue tied to smart mobile devices, home and industrial internet of things, thus, limiting near-term upside compared to its estimates, if not creating modest risk to Wedbush's 2026 sales outlook.

Wedbush said it continues to see GlobalFoundries' presence in US and Europe, and lack of exposure to China as a "fundamental positive" as customers are looking to diversify risk.

The firm lowered its rating on GlobalFoundries to neutral from outperform and its price target to $40 from $42.

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