QM · rank #7 · 2026-09-04
TSEM
NASDAQ · $23.30B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +321.18% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +10.0% |
| Profit margin Net profit margin, trailing 12 months. | +16.9% |
| Market cap (USD) Size filter: > $500M required. | $23.30B |
| Anchor (recent) Close on 2026-08-05 | $211.14 |
| Anchor (far) Close on 2025-08-05 | $50.13 |
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 foundry delivering differentiated silicon photonics, RF, and high-performance analog process technologies to fabless and IDM customers serving data-center interconnect and communications markets.
Rationale
Record Q2 2026 revenue of $460M (+24% YoY), a 27% upward revision to the multi-year revenue target, and silicon photonics growing 270% YoY validate both the momentum signal (3.21) and the quality metrics (ROE ~10%, net margin ~17-20%), confirming the quant screen is capturing a real fundamental acceleration rather than sentiment drift.
Material risks
- 1Hyperscale customers internalizing silicon photonics fabrication is the single most thesis-breaking risk, as Tower's outsourced-bottleneck-solver positioning collapses if major data-center operators replicate its process platform in-house, directly disconfirming the competitive moat underpinning the raised revenue targets.
- 2Geopolitical and export-control disruptions—given Tower's Israeli operational base and semiconductor technology-flow restrictions—could impair customer program continuity or constrain capacity expansion precisely when the silicon photonics ramp demands execution.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.