BN · rank #5 · 2026-09-09
TSEM
NASDAQ · $24.85B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.78 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +37.2% |
| Forward net margin Consensus forward net margin. | +20.9% |
| 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. | 3.60 |
| 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. | +43.3% |
| Last EPS surprise Most recent reported EPS versus consensus. | +14% |
| Market cap (USD) | $24.85B |
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 AI datacenter, communications, automotive, and defense end-markets.
Rationale
The bottleneck-solver thesis is directly reinforced by $1.3B in signed 2027 SiPho/AI datacenter supply contracts, production-ready 300mm CPO/SiPho platforms, and 31% YoY Q3 guidance—demonstrating structural criticality in optical interconnect rather than mere sector sentiment.
Material risks
- 1Customer concentration risk is acute—if Intel, Broadcom, or Samsung accelerate in-house SiPho foundry capacity or migrate to TSMC's photonics roadmap, Tower's sole-source position in CPO processes erodes and the $1.3B contract pipeline loses its moat justification.
- 2Israel HQ and fab concentration creates binary geopolitical event risk; an escalation scenario could disrupt production continuity precisely when AI datacenter customers need guaranteed supply ramp into 2027.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.