Tower Semiconductor Ltd TSEM

What the company does

Tower Semiconductor Ltd is a large-cap company in the Technology sector (Semiconductors), with a market value of $21.5B, based in the USA.

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. It provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensors, non-imaging sensors, wafers, and integrated power management. The company also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies.

Cheap or expensive? relatively expensive

Its price-to-earnings (P/E) is 74.9 versus 40.6 for the median of the Technology sector in our universe (65 companies) — relatively expensive.

Revenue is growing 24% a year — the market is paying ahead for that growth. If it slows, the high multiple becomes the risk.

On analysts' next-year forecasts the multiple drops to 38.5 — they expect higher earnings.

The average analyst price target is 312.93, 87% above the current price (their view, not ours).

The stock sits at 38% of its one-year range (0% = the low, 100% = the high).

The risks

• • More cash leaves than comes in (negative free cash flow).
• • The stock is more volatile than average (beta 0.9) — big daily moves both ways.
• • The stock is 48% below its one-year high.
• • Quarterly report in 10 days (2026-11-02) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 20 of every 100 dollars of revenue stays as profit.
• ✅ More cash than debt.
• ✅ Most analysts rate it buy (8 vs 0).
• ✅ Revenue is growing 24% a year.

What changed this week

Over the past week the stock fell 20.1% (for comparison: S&P 500 -1.0%, sector ETF XLK -3.6%).

This week's news

• This Week In AI Chips - Advancing AI Network Management Through Enhanced GigaSMART Technology finance.yahoo.com · 2026-10-21
  What the article says

  Gigamon has announced enhancements to its Deep Observability Pipeline, which now features distributed GigaSMART processing capabilities to bolster AI-enabled network and security operations. The new GigaVUE-GSA110 network appliance integrates high-density processing capacity alongside existing infrastructure, enabling… source ↗

• Semtech (SMTC) Stock Looks Expensive After Its 8x Run finance.yahoo.com · 2026-10-16
  What the article says

  Semtech has delivered a powerful share price story in recent years, and with earnings in the spotlight, the live question is whether that kind of move is still supported by what the business actually earns today. Over the past 3 years the stock has climbed by roughly 8x, which puts a lot of weight on the idea that… source ↗

• Semtech (SMTC) Dropped, So What Is Driving Attention Now? finance.yahoo.com · 2026-10-16
  What the article says

  Why Semtech's new Tower deal matters for AI-focused investors Semtech (SMTC) has moved to lock in silicon germanium production with Tower Semiconductor across multiple regions, a step meant to support rising AI data center optical interconnect demand. The long-running partnership now includes dedicated capacity in the… source ↗

What changed since last week

• New risk flag: deep drawdown from the high.

• New risk flag: earnings report coming up.

• The price fell 26.7% since the last summary.