GFS gains 6% on acquiring MIPS and sees price target increase from Citi.

GlobalFoundries (GFS) jumped 6.2% to $41.35, gaining $2.41, after announcing a definitive agreement to acquire MIPS, a supplier of AI and processor IP. MIPS recently launched its Atlas portfolio—a RISC-V-based suite of cores targeting real-time and AI edge processing—and a virtual design tool, Atlas Explorer, aimed at early-stage design optimization.

The deal is expected to close in 2H25, pending regulatory approval. MIPS will operate as a standalone unit within GF post-acquisition.

Separately, Citi raised its price target on GFS to $42 (from $35) ahead of Q2 earnings, citing improving sector demand and a diminished impact from tariffs. While maintaining a Neutral rating, Citi highlighted Microchip (MCHP) and Texas Instruments (TXN) as having the most upside in the group.