BN · rank #2 · 2026-10-23
TSEM
NASDAQ · $19.04B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.97 |
|---|---|
| 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. | +86.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +14% |
| Market cap (USD) | $19.04B |
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 operates as a specialty analog and mixed-signal semiconductor foundry, manufacturing silicon photonics, SiGe, and power management ICs for AI data centers, communications, and industrial markets.
Rationale
The bottleneck-solver thesis is reinforced by Tower's specialized SiPho and SiGe manufacturing capabilities for 800G/1.6T optical interconnects, backed by multi-year dedicated capacity agreements and $283 million in customer advances.
Material risks
- 1Optical component customers insourcing manufacturing or transitioning to alternative non-SiPho interconnect architectures, eroding Tower's capacity utilization.
- 2Construction delays, grant covenant issues, or geopolitical disruptions tied to multi-region fab expansion projects in Japan and Israel.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.