Quality Momentum

QM · rank #1 · 2026-06-01

TSEM

NASDAQ · $33.73B

verdict · CAUTION

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+484.63%
ROE TTM
Return on equity, trailing 12 months.
+8.7%
Profit margin
Net profit margin, trailing 12 months.
+15.1%
Market cap
Size filter: > $500M required.
$33.73B
Anchor (recent)
Close on 2026-05-01
$218.01
Anchor (far)
Close on 2025-05-02
$37.29

The AI research card

Independent qualitative review of each pick before the order is placed.

Summary

Tower Semiconductor Ltd. is a pure-play specialty semiconductor foundry that manufactures integrated circuits based on customer designs for diverse markets including consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace and defense applications.

Rationale

The strong momentum_12_1 combined with solid profitability metrics (ROE and profit margin) suggests TSEM is effectively capitalizing on demand for its specialized analog and mixed-signal semiconductor solutions.

Material risks

  • 1Customer concentration is a significant risk, as the top 10 customers account for over 50% of total sales, and recent large Silicon Photonics contracts further deepen exposure to a single growth engine.
  • 2The semiconductor industry faces inherent supply chain risks due to geographic concentration of manufacturing and raw material sourcing, as well as geopolitical tensions, which could disrupt Tower's operations.

Verdict reasoning

While momentum and profitability are strong, high customer concentration and broader semiconductor supply chain risks warrant careful consideration.