GlobalFoundries' (GFS) upbeat early-2026 guidance, alongside more than 30% revenue growth forecast for communications infrastructure and data center segment, continued automotive gains, and a second-half Internet of Things rebound, signals a constructive setup for 2026, Wedbush said in a Thursday note.

Wedbush raised its 2026 estimates for revenue to $7.23 billion and earnings per share to $1.85, amid growing contributions from higher-value businesses such as silicon photonics, which the company expects to nearly double in 2026. Analysts surveyed by FactSet expect $7.2 billion in revenue and $1.86 in EPS.

The firm also lifted its 2027 forecast for revenue to $8.16 billion and EPS to $2.52. Analysts surveyed by FactSet expect $7.86 billion in revenue and $2.39 in EPS.

Management pulled forward its $1 billion silicon photonics revenue target to 2028, while Wedbush sees added upside from power platforms, satellite communications, and physical AI, according to the report.

The firm maintained its neutral rating on the stock and raised its price target to $50 from $40.