BN · rank #4 · 2026-10-19
TSEM
NASDAQ · $22.11B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.82 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +37.9% |
| Forward net margin Consensus forward net margin. | +21.2% |
| Net margin TTM Trailing twelve month net margin. | +16.9% |
| Margin expansion Forward minus trailing net margin (percentage points). | +4.2% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 3.43 |
| 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. | +60.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +14% |
| Market cap (USD) | $22.11B |
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 specialty analog/mixed-signal foundry whose SiGe and silicon-photonics process platforms are directly embedded in the 800G/1.6T/3.2T+ optical and copper interconnect supply chain powering AI data-center buildouts.
Rationale
The bottleneck-solver thesis is structurally reinforced by $1.3B of contracted 2027 SiPho revenue, $290M in customer prepayments, a named multi-year Semtech capacity agreement, and Q3 guidance of $520M—concrete demand visibility rather than sentiment rotation.
Material risks
- 1Silicon-photonics revenue is concentrated in a small set of hyperscaler-adjacent customers whose in-house photonics or alternative-foundry decisions (e.g., vertical integration by a major cloud customer) could hollow out the contracted ramp before Tower's capex is recovered.
- 2Israeli manufacturing exposure creates a hard-to-hedge geopolitical tail risk—regional conflict escalation, export controls, or capital-flow restrictions could disrupt fab operations across Tower's primary production base regardless of demand strength.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.