QM · rank #3 · 2026-09-08
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 pure-play specialty foundry providing analog and mixed-signal wafer fabrication services across RF, power, imaging, and SiGe process platforms to fabless and IDM customers globally.
Rationale
Record Q2 2026 revenue of $460M (+24% YoY), 20% net margin, and Q3 record guidance directly validate both the momentum_12_1 signal and the quality screen (ROE ~10%, profit margin ~17%), confirming this is fundamental-driven momentum rather than sentiment rotation.
Material risks
- 1Intel's potential acquisition of TSEM (previously attempted) or a major customer like STMicroelectronics or Skyworks vertically integrating specialty analog capacity in-house would directly erode TSEM's captive-customer moat and revenue base.
- 2Heavy capex intensity ($187M in Q2 property/equipment vs. $177M operating cash flow) leaves thin free cash flow headroom; any demand softening in RF or power markets could compress margins sharply given fixed-cost foundry economics.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.