QM · rank #10 · 2026-10-26
TSEM
NASDAQ · $19.04B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +236.45% |
|---|---|
| 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. | $19.04B |
| Anchor (recent) Close on 2026-09-25 | $230.47 |
| Anchor (far) Close on 2025-09-26 | $68.50 |
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 foundry producing silicon photonics, SiGe, RF, and power management chips across manufacturing facilities in Israel, the United States, Japan, and Italy.
Rationale
Strong momentum (2.36) and resilient net margins (16.9%) are reinforced by accelerating top-line growth (Q3 revenue guided +31% YoY) and long-term contract visibility via expanded partnership agreements with Semtech for AI optical interconnects.
Material risks
- 1Substantial capital expenditure requirements for the $3 billion Japan 300mm expansion could severely drag down return on equity and capacity utilization if customer adoption of 1.6T and 3.2T optical architectures lags.
- 2Geopolitical tensions, export control updates, or operational disruptions impacting its primary manufacturing operations in Israel, Japan, Italy, and the United States.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.