- Morgan Stanley analyst Joseph Moore upgraded Globalfoundries Inc (NASDAQ:GFS) to Overweight from Equal Weight with a price target of $72.50, up from $70 (21.64% upside).
- Moore downgraded Intel Corp (NASDAQ:INTC) from Equal-Weight to Underweight and announced a $47 price target (3.83% downside).
- Moore prefers GlobalFoundries over Intel, given his view that the former acts as a hedge against the risk of U.S. government support for domestic foundry and new business opportunities moving out of Asia as customers diversify.
- While Intel is betting big on its foundry business and recently purchased a smaller foundry in Tower Semiconductor Ltd (NASDAQ:TSEM), GlobalFoundries already has a solid and growing customer base based on "proven know-how and manufacturing capability," Moore says.
- Price Action: INTC shares traded lower by 1.90% at $47.94 in the premarket on the last check Thursday.
