Tower Semiconductor (NASDAQ:TSEM) Sets New 52-Week High on Better-Than-Expected Earnings

Tower Semiconductor Ltd. (NASDAQ:TSEM)’s stock price hit a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $255.02 and last traded at $257.9440, with a volume of 498356 shares. The stock had previously closed at $220.83.

The semiconductor company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.01. The business had revenue of $413.63 million during the quarter, compared to analysts’ expectations of $410.72 million. Tower Semiconductor had a return on equity of 7.86% and a net margin of 14.08%.The company’s revenue was up 15.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.35 EPS.

Tower Semiconductor News Summary

Here are the key news stories impacting Tower Semiconductor this week:

• Positive Sentiment: Tower Semiconductor reported first-quarter revenue of $413.6 million and EPS of $0.57, both slightly ahead of Wall Street expectations, signaling solid execution and continued demand. Tower Semiconductor earnings press release
• Positive Sentiment: The company guided second-quarter revenue to $432.3 million-$477.8 million, which tops the consensus estimate and suggests growth is continuing into the current quarter.
• Positive Sentiment: Tower said it signed $1.3 billion in Silicon Photonics contracts for 2027, along with $290 million in customer prepayments, reinforcing confidence in its AI/data-center connectivity business and long-term revenue visibility. Reuters article on AI chip deals
• Positive Sentiment: Management said demand is being driven by AI infrastructure and optical connectivity, with the company expanding capacity to support future growth and a longer-term revenue target of $2.8 billion by 2028.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TSEM. Barclays lifted their price target on Tower Semiconductor from $114.00 to $142.00 and gave the stock an “equal weight” rating in a report on Friday, February 13th. Wedbush lifted their price objective on shares of Tower Semiconductor from $125.00 to $140.00 and gave the company a “neutral” rating in a research note on Thursday, February 12th. Benchmark raised their price target on Tower Semiconductor from $165.00 to $230.00 and gave the stock a “buy” rating in a report on Thursday, March 26th. Finally, Susquehanna reiterated a “positive” rating and issued a $180.00 target price on shares of Tower Semiconductor in a research note on Thursday, February 12th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Tower Semiconductor currently has an average rating of “Hold” and an average target price of $173.00.

Institutional Trading of Tower Semiconductor

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Amundi raised its stake in Tower Semiconductor by 86.8% in the 1st quarter. Amundi now owns 21,617 shares of the semiconductor company’s stock valued at $771,000 after purchasing an additional 10,042 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Tower Semiconductor by 4.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 99,633 shares of the semiconductor company’s stock worth $3,553,000 after purchasing an additional 3,954 shares during the period. Geode Capital Management LLC increased its position in shares of Tower Semiconductor by 0.7% in the second quarter. Geode Capital Management LLC now owns 95,384 shares of the semiconductor company’s stock worth $4,135,000 after acquiring an additional 662 shares in the last quarter. Hsbc Holdings PLC acquired a new position in shares of Tower Semiconductor during the 2nd quarter valued at $438,000. Finally, Arrowstreet Capital Limited Partnership acquired a new position in shares of Tower Semiconductor during the 2nd quarter valued at $5,809,000. Institutional investors and hedge funds own 70.51% of the company’s stock.

Tower Semiconductor Trading Up 15.9%

The stock has a market capitalization of $28.78 billion, a PE ratio of 134.49 and a beta of 0.85. The company has a current ratio of 6.48, a quick ratio of 5.51 and a debt-to-equity ratio of 0.05. The business’s 50-day moving average is $180.36 and its two-hundred day moving average is $138.17.

Tower Semiconductor Company Profile

Tower Semiconductor, traded on NASDAQ under the symbol TSEM, is a specialty foundry company that provides analog and mixed-signal semiconductor manufacturing services to a broad array of customers worldwide. The company focuses on delivering tailored process technologies for high-growth markets, including radio frequency (RF), power management, imaging, automotive electronics, and Internet of Things (IoT) applications. By combining deep process know-how with flexible manufacturing capabilities, Tower Semiconductor supports the development and volume production of advanced semiconductor devices for fabless and integrated device manufacturer customers.

The company’s technology portfolio spans standard and specialty processes such as CMOS, BiCMOS, high-voltage, radio frequency, silicon photonics, micro-electromechanical systems (MEMS) and image sensor production.