The U.S. Government Is Preparing to Offload Over 9 Million GlobalFoundries Shares. How You Should Play GFS Stock in Response.

The federal government is preparing to cash out a chunk of its stake in GlobalFoundries (GFS). A new filing shows Washington plans to sell as many as 9.9 million shares of the semiconductor firm, months after agreeing to take an equity position in the company.

For investors watching GFS stock, the move raises questions about what comes next, even as GlobalFoundries lands new government-backed deals in quantum computing and silicon photonics. Here is what the filing means, and why the government owned shares of GlobalFoundries stock in the first place.