BN · rank #4 · 2026-10-21
TSEM
NASDAQ · $20.86B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.81 |
|---|---|
| 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. | +56.2% |
| Last EPS surprise Most recent reported EPS versus consensus. | +14% |
| Market cap (USD) | $20.86B |
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 and mixed-signal foundry providing silicon photonics (SiPho), SiGe, and RF manufacturing critical for AI data center optical interconnects.
Rationale
The quant signal captures Tower's key role in resolving AI optical-interconnect supply bottlenecks, evidenced by 31% YoY Q3 revenue guidance and rapid SiPho scaling toward a $1B+ annualized run rate backed by a multi-year Semtech capacity agreement.
Material risks
- 1Customer dual-sourcing, insourcing, or technical shifts toward alternative optical or copper interconnect architectures could impair Tower's 800G/1.6T SiGe and SiPho volume growth.
- 2A rich valuation at a 3.4 forward PEG leaves low margin for error if execution delays hit Japan fab repurposing or METI grant-supported capacity expansions.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.