Tower Semiconductor (NASDAQ:TSEM) Hits New 1-Year High After Better-Than-Expected Earnings

Tower Semiconductor Ltd. (NASDAQ:TSEM) shares hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company 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 (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.01. The business had revenue of $413.63 million during the quarter, compared to analyst estimates 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 for the quarter was up 15.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.35 earnings per share.

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

TSEM has been the topic of a number of analyst reports. 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 upped their target price on shares of Tower Semiconductor from $165.00 to $230.00 and gave the company a “buy” rating in a research note on Thursday, March 26th. Barclays lifted their price target on shares of Tower Semiconductor from $114.00 to $142.00 and gave the stock an “equal weight” rating in a research note on Friday, February 13th. Finally, Susquehanna reiterated a “positive” rating and issued a $180.00 price objective on shares of Tower Semiconductor in a report on Thursday, February 12th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Tower Semiconductor has an average rating of “Hold” and a consensus target price of $173.00.

Hedge Funds Weigh In On Tower Semiconductor

Hedge funds have recently bought and sold shares of the company. Amundi raised its stake in Tower Semiconductor by 86.8% during the first quarter. Amundi now owns 21,617 shares of the semiconductor company’s stock valued at $771,000 after buying an additional 10,042 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Tower Semiconductor by 4.1% in 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 acquiring an additional 3,954 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Tower Semiconductor by 0.7% in the 2nd 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 bought a new stake in shares of Tower Semiconductor in the 2nd quarter valued at approximately $438,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Tower Semiconductor during the 2nd quarter valued at approximately $5,809,000. 70.51% of the stock is currently owned by institutional investors and hedge funds.

Tower Semiconductor Stock Performance

The company has a 50-day moving average of $180.36 and a 200-day moving average of $138.17. The firm has a market capitalization of $28.78 billion, a price-to-earnings 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.

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.