GLOBALFOUNDRIES Inc. (GFS) shares soared 5.13% over the 24-hour trading period, as investors cheered the announcement that the company will receive up to $300 million in federal incentives under the CHIPS and Science Act.

The U.S. Department of Commerce disclosed on Thursday that it had signed letters of intent to provide a total of $874 million to seven companies for semiconductor research and development focused on AI and advanced computing. GlobalFoundries was the largest single recipient, with the funding earmarked for the development of co-packaged optics, a technology that integrates light-based data transfer with AI processors to enable faster computing.

The award is part of a broader U.S. effort to strengthen domestic semiconductor production and reduce reliance on foreign suppliers. Investors viewed the funding as a positive catalyst for GlobalFoundries’ long-term growth potential, helping to reverse recent weakness in the stock and driving the sharp rally.