QM · rank #2 · 2026-09-07
TSEM
NASDAQ · $23.30B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +423.51% |
|---|---|
| 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 2026-08-07 | $252.49 |
| Anchor (far) Close on 2025-08-08 | $48.23 |
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 (TSEM) is a specialty analog and mixed-signal foundry serving RF, power, automotive, and imaging markets across fabs in Israel, the US, and Japan.
Rationale
Record Q2 2026 revenue of $460M (+24% YoY) with 20% net margins and sequential acceleration directly validates both the momentum_12_1 signal and the quality screen on ROE/profit margin, suggesting the quant factors are tracking a real earnings inflection rather than multiple expansion alone.
Material risks
- 1Geopolitical exposure — TSEM's primary fabs are in Israel, and any escalation disrupting fab operations would immediately impair the revenue trajectory underpinning both the momentum and quality signals.
- 2CapEx outpacing operating cash flow in Q2 2026 ($187M capex vs. $177M operating cash) signals capacity expansion bets that could compress free cash flow and margins if demand softens before new capacity fills.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.