Applied Materials and GlobalFoundries Join Forces to Accelerate AI-Driven Photonics Revolution

Why Is Applied Materials Stock Gaining Wednesday? - Applied Mat (NASDAQ:AMAT), GLOBALFOUNDRIES (NASDAQ:GFS)

Applied Materials AMAT announced on Tuesday that it will partner with GlobalFoundries GFS to build a state-of-the-art waveguide fabrication facility at GlobalFoundries' Singapore site, to accelerate the photonics revolution driven by artificial intelligence. The collaboration represents a milestone in positioning photonics as a cornerstone for next-generation AI applications, such as augmented reality (AR) and human-centered digital experiences. Applied Materials will design and develop advanced waveguide components, while GlobalFoundries will serve as its high-volume manufacturing partner in Singapore. Also Read: China's E-Town Claims Applied Materials Poached Staff, Misused Proprietary Chip Tech The collaboration builds on the emerging photonics ecosystem in Singapore, encompassing materials, sensors, integration, assembly, test, and applications. Dr. Paul Meissner, Vice President and General Manager of Applied Materials' Photonics Platforms Business, and GlobalFoundries' Yew Kong Tan, Senior Vice President and General Manager for APAC Manufacturing, emphasized that the collaboration merges Applied Materials' leadership in materials science with GlobalFoundries' manufacturing scale to accelerate the adoption of next-generation devices. Applied Materials stock gained 24% year-to-date, backed by demand for its wafer fabrication equipment, driven by the AI and high-performance computing (HPC) frenzy. GlobalFoundries stock tanked 23% year-to-date due to its dismal third-quarter outlook, with weaker-than-expected revenue and earnings forecasts driven by a decline in the consumer electronics sector. Price Actions: AMAT stock was trading higher by 0.99% to $202.85 premarket at last check Wednesday. GFS was up 0.30%. Read Next: Nvidia, Broadcom Lead Fund Manager Buys Even As Semiconductor Sector Cools: Analysts Photo by michelmond via Shutterstock AMATApplied Materials Inc$202.800.96%OverviewGFSGLOBALFOUNDRIES Inc$33.02-0.16%Market News and Data brought to you by Benzinga APIs

Applied Materials, GlobalFoundries partner on AI photonics facility By Investing.com

SANTA CLARA/SINGAPORE - Applied Materials, Inc. (NASDAQ:AMAT), a $160 billion market cap semiconductor equipment leader with a "GREAT" InvestingPro financial health rating, and GlobalFoundries announced Tuesday a strategic collaboration to establish a waveguide fabrication facility in Singapore focused on advancing photonics technology for artificial intelligence applications. The new facility will develop waveguide components for next-generation AI applications, including augmented reality glasses and other optical systems requiring high efficiency and performance. Applied Materials, maintaining an impressive 48.5% gross profit margin, will develop the components with GlobalFoundries serving as the high-volume manufacturing partner. "Photonics is rapidly becoming a critical enabler of augmented reality glasses that put humans at the center of the AI experience," said Dr. Paul Meissner, Vice President and General Manager of Applied Materials' Photonics Platforms Business. Yew Kong Tan, senior vice president at GlobalFoundries, stated the partnership will "deliver innovative technology solutions that will drive and scale adoption of next generation devices." The collaboration aims to leverage Singapore's growing photonics ecosystem, which includes materials development, sensors, integration, assembly, testing, and applications. The companies did not disclose financial terms or specific production timelines for the facility in their press release statement. Applied Materials is a materials engineering solutions provider for semiconductor and display technologies, while GlobalFoundries operates as a semiconductor manufacturer with facilities worldwide. Currently trading near its 52-week high of $215.70, Applied Materials shows strong momentum. Discover detailed insights and 14 additional ProTips with an InvestingPro subscription, including comprehensive analysis in our Pro Research Report. In other recent news, Applied Materials announced a quarterly cash dividend of $0.46 per share, payable on December 11, 2025, marking an increase from $0.40 earlier this year. This move continues the company's trend of raising dividends for eight consecutive years. Meanwhile, KeyBanc has raised its price target for Applied Materials to $220, maintaining an Overweight rating, despite concerns about demand headwinds in China affecting the company's equipment sales. In contrast, Mizuho downgraded the stock from Outperform to Neutral, reducing its price target to $175 due to market share losses in key product segments. Cantor Fitzgerald, however, reiterated its Overweight rating and $200 price target, expressing a positive outlook amidst industry uncertainties. TD Cowen also maintained a Buy rating with a $200 price target, noting concerns about China wafer fabrication equipment and potential softness in foundry/logic sectors later in the year. These developments highlight the mixed analyst perspectives on Applied Materials' future performance. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.