BN · rank #10 · 2026-06-11
TSEM
NASDAQ · $27.14B
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.45 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +34.8% |
| Forward net margin Consensus forward net margin. | +19.3% |
| Net margin TTM Trailing twelve month net margin. | +15.1% |
| Margin expansion Forward minus trailing net margin (percentage points). | +4.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 6.57 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.48× |
| Analyst upside Spread between the consensus 12m target and the current price. | +34.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | +19% |
| Market cap | $27.14B |
The AI research card
Independent qualitative review of each pick before the order is placed.
Summary
Tower Semiconductor Ltd. is a pure-play specialty foundry that manufactures analog and mixed-signal semiconductors based on customer designs, focusing on differentiated process technologies like Silicon Photonics (SiPho), Silicon Germanium (SiGe), and RF-CMOS for various high-growth markets including AI infrastructure, automotive, and communications.
Rationale
The quant signal for "ai_power_and_thermal_infrastructure" is reinforced by Tower Semiconductor's significant long-term contracts and prepayments for Silicon Photonics, a key technology for high-speed optical connectivity in AI data centers, demonstrating strong revenue visibility and a structural moat.
Material risks
- 1A significant portion of Tower Semiconductor's growth plans is tied to AI data center and optical networking demand, making it vulnerable to any slowdown or technology shift in that specific area.
- 2While TSEM focuses on specialty nodes, competitive pressures exist from larger foundries like UMC and GlobalFoundries in mature and specialty nodes, and from mega-fabs for very high-volume mobile and leading-edge logic.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.