BN · rank #3 · 2026-09-08
TSEM
NASDAQ · $25.13B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.77 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +37.2% |
| Forward net margin Consensus forward net margin. | +20.8% |
| Net margin TTM Trailing twelve month net margin. | +16.9% |
| Margin expansion Forward minus trailing net margin (percentage points). | +3.9% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 3.34 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.47× |
| Analyst upside Spread between the consensus 12m target and the current price. | +41.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +14% |
| Market cap (USD) | $25.13B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Tower Semiconductor is a pure-play specialty analog foundry offering differentiated silicon photonics, RF, power, and imaging processes to 300+ customers across fabs in Israel, the US, and Japan.
Rationale
The bottleneck-solver thesis is directly reinforced by $1.3B in signed 2027 SiPho/AI datacenter supply contracts, production-ready 300mm CPO processes, and 31% YoY Q3 guidance growth—this is contracted revenue visibility, not sentiment rotation.
Material risks
- 1Customer concentration in Intel, Broadcom, and Samsung creates insourcing/migration risk that could rapidly erode utilization if any anchor customer shifts SiPho or RF-SOI volume to an internal or competing foundry platform.
- 2Israel HQ and primary fab exposure means a geopolitical escalation or export-control tightening could disrupt production precisely when the 2027 AI datacenter contracts are ramping to peak delivery.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.