QM · rank #10 · 2026-10-20
TSEM
NASDAQ · $23.64B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +233.63% |
|---|---|
| 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. | $23.64B |
| Anchor (recent) Close on 2026-09-18 | $223.60 |
| Anchor (far) Close on 2025-09-19 | $67.02 |
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 pure-play specialty foundry whose differentiated SiPho (PH18DA), SiGe/BiCMOS, and RF-SOI platforms serve AI data-center interconnect, automotive, and communications customers across a global multi-fab network.
Rationale
The quality-momentum signal is reinforced by record Q2 revenue of $460M (+24% YoY), Q3 guidance implying 31% YoY growth, $1.3B in contracted 2027 SiPho revenue, and Semtech's dedicated-capacity commitment—concrete backlog and margin expansion that justify both the momentum score and the ROE/margin quality flags.
Material risks
- 1Large hyperscaler or IDM customers internalizing SiPho or SiGe capability would directly dismantle Tower's bottleneck-solver moat and contracted revenue base—the single most thesis-breaking disqualifier given the concentration of the $1.3B pipeline.
- 2Israeli security disruption or U.S.-China export controls could impair Tower's Israel-centered fabs and cross-border capital flows precisely during the high-capex 85%-utilization ramp, creating execution risk when the balance sheet is most stretched.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.