Tower Semiconductor

TSEM · NASDAQ

$183.78−$16.52 (−8.25%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $200.30

TSEM analyst rating

BuyConsensus of 8 analysts over the last 12 months. 75% rate it a buy.

Strong buy0
Buy6
Hold2
Underperform0
Sell0

12-month price target · 10 analysts

Average $327.48 (+78.2% upside)

Low: $280.78
Now: $183.78
High: $383.71

Upgrades and downgrades

The latest rating actions, newest first

TSEM analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Mizuho	Sep 25, 2026	Initiates	Outperform	$300.00	59%
Barclays	Sep 18, 2026	Initiates	Overweight	$310.00	59%
Stifel	Sep 2, 2026	Initiates	Buy	$270.00	100%
B of A Securities	Aug 7, 2026	Initiates	Buy	$367.00	0%
Benchmark	May 14, 2026	Maintains	Buy	$230.00 → $335.00	75%
Susquehanna	May 14, 2026	Maintains	Positive	$180.00 → $330.00	83%
Wedbush	May 14, 2026	Maintains	Neutral	$140.00 → $300.00	72%
Benchmark	Mar 26, 2026	Maintains	Buy	$165.00 → $230.00	75%
Barclays	Feb 13, 2026	Maintains	Equal-Weight	$114.00 → $142.00	29%
Wedbush	Feb 12, 2026	Maintains	Neutral	$125.00 → $140.00	72%

The case for and against

Updated Oct 21, 2026

Bull case

Tower Semiconductor is increasingly supported by unusually strong demand visibility, highlighted by $1.3B of contracted FY27 SiPho revenue and $290M of customer prepayments that reduce execution risk and effectively floor future activity. Its 1Q26 performance also reinforced momentum, with revenue of $413.6M, adjusted EPS of $0.65, gross margin of 26.8%, and 2Q26 guidance of $455M implying a new company record with about 10% sequential growth and 22% year-over-year growth. The longer-term case remains compelling because the mix is shifting toward higher-margin SiPh and SiGe, RF Infrastructure reached 38% of revenue, and management sees broad participation across 2026-2028 optical transitions rather than dependence on a single technology path.

Bear case

Tower Semiconductor is facing a weakening fundamental setup despite a better-than-expected Q1, because the margin improvement may be temporary and much of the future revenue lift depends on premium mix, utilization gains, and SiPh ramp rather than broad-based demand strength. Bears have credible structural concerns: RF Mobile revenue fell to about 16% of total revenue from about 24% in 4Q, full-year 2026 RF SOI revenue is expected to decline, and customer concentration remains elevated with the top five customers representing roughly 44% of 2023 revenues. Its risk profile is further pressured by potential CPO disruption, supply and production constraints, and a material lease dispute at Fab 3 that could disrupt customer service if the judicial outcome turns unfavorable.

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