Here's Why Morgan Stanley Prefers Globalfoundries Over Intel

Morgan Stanley analyst Joseph Moore upgraded Globalfoundries Inc GFS to Overweight from Equal Weight with a price target of $72.50, up from $70 (21.64% upside).
Moore downgraded Intel Corp INTC from Equal-Weight to Underweight and announced a $47 price target (3.83% downside).
Moore prefers GlobalFoundries over Intel, given his view that the former acts as a hedge against the risk of U.S. government support for domestic foundry and new business opportunities moving out of Asia as customers diversify.
While Intel is betting big on its foundry business and recently purchased a smaller foundry in Tower Semiconductor Ltd TSEM, GlobalFoundries already has a solid and growing customer base based on "proven know-how and manufacturing capability," Moore says.
Price Action: INTC shares traded lower by 1.90% at $47.94 in the premarket on the last check Thursday.