BN · rank #3 · 2026-10-26
TSEM
NASDAQ · $19.02B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.96 |
|---|---|
| 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. | +86.8% |
| Last EPS surprise Most recent reported EPS versus consensus. | +14% |
| Market cap (USD) | $19.02B |
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 semiconductor foundry manufacturing silicon photonics, SiGe, RF, and mixed-signal chips critical for AI data center optical interconnects [1].
Rationale
Tower's high solver composite score (0.96) and 37.9% forward revenue growth are validated by its critical role in AI optical bandwidth, supported by $290 million in customer prepayments and Semtech's dedicated capacity agreement [1].
Material risks
- 1Larger specialty foundries including GlobalFoundries, UMC, and TSMC scaling competing 300mm silicon photonics platforms could commoditize Tower's process nodes and erode pricing power [1].
- 2Execution risks surrounding the $1 billion government-backed Japan facility expansion, paired with geopolitical exposure linked to its Israeli manufacturing base [1].
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.