Tower Semiconductor

TSEM

Market cap $30.2B

I maintain my Buy rating on Tower Semiconductor Ltd., but with more caution after the stock's almost 70% gain since my coverage. Q1 2026 was strong, with revenue up 15% YoY to $414M, net profit up 62% YoY to $65M, and Q2 guidance implying record revenue of $455M. The SiPho thesis keeps getting stronger for TSEM, with 3x YoY revenue growth, $1.3B of contractual 2027 SiPho revenue, and $290M in customer prepayments.

Tower Semiconductor Ltd. (NASDAQ:TSEM) on Wednesday reported stronger-than-expected first-quarter results and issued upbeat second-quarter guidance.

TSEM surged 23% post-earnings despite a revenue miss as margins and silicon photonics demand accelerated sharply. Non-GAAP EPS beat estimates by 14%, while operating profits nearly doubled due to higher-margin AI optics products. Management guided record Q2 revenue of $455 million and expects sequential revenue and profit growth throughout 2026.

Tower Semiconductor Ltd (NASDAQ:TSEM) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.

Tower Semiconductor NASDAQ: TSEM reported a sharp year-over-year increase in first-quarter 2026 profit and issued guidance for what it said would be the highest quarterly revenue in the company's history, driven by accelerating demand in silicon photonics and related technologies for AI data center infrastructure.

Tower Semiconductor Ltd. (TSEM) Q1 2026 Earnings Call Transcript

Tower Semiconductor (NASDAQ:TSEM) reported better-than-expected financial results for the first quarter and issued an upbeat outlook, sending its shares 12% higher on Wednesday morning. For the quarter ended March 31, 2026, Tower Semiconductor reported revenue of $413.6 million, compared with $358 million a year earlier, representing 15% year-over-year growth and above consensus estimates of about $408 million.

Tower Semiconductor on Wednesday forecast second-quarter revenue above estimates and said it landed $1.3 billion in deals for 2027 ​to supply chips that use light to move ‌data at high speeds through artificial intelligence data centers.

Tower Semiconductor beat Wall Street's targets for the first quarter and with its outlook for Q2. TSEM stock jumped.

MIGDAL HAEMEK, Israel, May 13, 2026 - Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions, today announced it has signed Silicon Photonics (SiPho) contracts for $1.3 billion for 2027 revenue with its largest customers, and the receipt of $290 million in customers' prepayments for capacity reservation. This initial commitment is further reinforced by an even larger contractual wafer commitment for 2028 for which additional associated prepayments are due by January 2027. These financial commitments underscore Tower's market leadership and highlight the critical role of its world-leading Silicon Photonics technology platform in meeting the rapidly growing industry demand.