GLOBALFOUNDRIES (GFS) Surged on Robust CID Growth and Dividend Announcement

GLOBALFOUNDRIES (GFS) Surged on Robust CID Growth and Dividend Announcement

Fri, September 4, 2026 at 6:04 PM GMT+3 3 min read

Meridian Funds, managed by ArrowMark Partners, released its second-quarter 2026 investor letter for "Meridian Hedged Equity Fund". The letter can be downloaded here. U.S. equities rebounded strongly in the second quarter, recovering from an earlier selloff due to geopolitical tensions, primarily with Iran. The easing of these tensions caused crude oil prices to drop significantly, yet inflation remained a concern, with consumer prices rising 4.2% year-over-year in May. The Federal Reserve held interest rates steady but hinted at future hikes, reflecting a hawkish shift under new Chair Kevin Warsh. While the Meridian Hedged Equity Fund gained 4.50% during this period, it lagged behind the S&P 500's 15.20% return. The Fund focuses on high-quality companies, balancing growth potential with risk management through covered call options. Moving forward, the firm anticipates volatility but views it as a potential opportunity and is committed to disciplined research and investing in businesses with solid fundamentals and long-term growth prospects. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Meridian Hedged Equity Fund highlighted GLOBALFOUNDRIES Inc. (NASDAQ:GFS). GLOBALFOUNDRIES Inc. (NASDAQ:GFS), a semiconductor foundry, contributed positively to the fund's performance this quarter. On September 03, 2026, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) closed at $44.53 per share. Over the past month, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) declined 17.43%, but its shares are up 33.76% over the past year. GLOBALFOUNDRIES Inc. (NASDAQ:GFS) has a market capitalization of $24.43 billion, and its stock has traded within a 52-week range of $31.59 to $92.55.

Meridian Hedged Equity Fund stated the following regarding GLOBALFOUNDRIES Inc. (NASDAQ:GFS) in its Q2 2026 investor letter:

"GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is a leading global semiconductor manufacturer that provides geographically resilient capacity across the U.S., Europe, and Singapore to serve the automotive, industrial, and hyperscale data center markets. The company specializes in differentiated, power-efficient, and high-performance solutions through long-term sole source agreements with major global clients. During the second quarter of 2026, the company's performance was bolstered by a significant structural gross margin expansion of 300 basis points year-over-year and robust 30%+ revenue growth in its Communications Infrastructure and Data Center (CID) segment. Investor sentiment was further strengthened by the announcement of the company's first-ever quarterly cash dividend and a new capital allocation framework targeting the return of up to 50% of free cash flow to shareholders."

GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held GLOBALFOUNDRIES Inc. (NASDAQ:GFS) at the end of the second quarter, compared to 44 in the previous quarter. While we acknowledge the potential of GLOBALFOUNDRIES Inc. (NASDAQ:GFS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed GLOBALFOUNDRIES Inc. (NASDAQ:GFS) and shared a list of best up and coming stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. This article is originally published at Insider Monkey.