QM · rank #3 · 2026-07-27
TSEM
NASDAQ · $29.44B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +475.43% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +8.7% |
| Profit margin Net profit margin, trailing 12 months. | +15.1% |
| Market cap (USD) Size filter: > $500M required. | $29.44B |
| Anchor (recent) Close on 2026-06-26 | $249.91 |
| Anchor (far) Close on 2025-06-27 | $43.43 |
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 uniquely positioned in silicon photonics, SiGe, and BCD power processes serving AI data-center optical interconnect demand.
Rationale
Strong 12-1 momentum (4.75) is structurally anchored—not sentiment-driven—by $1.3B in contracted 2027 silicon photonics revenue, record Q2 guidance of $455M, and a 62% YoY net profit surge validating the quality screen.
Material risks
- 1Hyperscaler customers (e.g., Microsoft, Google) vertically integrating silicon photonics in-house could rapidly erode Tower's contracted backlog and sole-source positioning post-2027.
- 2Japan Fab Seven 300mm ramp depends on METI support and flawless execution of a ~$920M capex program; any delay compresses the path to the $2.8B/~$750M net income 2028 model that underpins current valuation.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.