The CHIPS Act Is Accepting Applications -- Does That Make GlobalFoundries Stock a Buy?
The bear market of 2022 bludgeoned technology stocks, but it also brought an end to the chip shortage for many markets -- at exactly the wrong time for investors. Supply of high-end chips for smartphones, PCs, and some data center components started to loosen up, just as consumer demand for electronic devices started to wane after two years of early-pandemic spending sprees.
However, the chip shortage has continued for mature-node semiconductors (chips that are no longer at the cutting edge of computing and manufacturing technology). The U.S. CHIPS and Science Act is now accepting applications from chip manufacturers, which could help bring relief to companies that use mature-node semiconductors in the coming years.
Does that make GlobalFoundries (NASDAQ: GFS), a leader in this type of chipmaking, a buy right now?
Source Fool.com
