Tower Semiconductor's growth driven by Silicon Photonics with strong 2027 contracts and Q2 2026 beat.

Tower Semiconductor is entering a new growth phase fueled by Silicon Photonics, securing $1.3 billion in contracts for 2027 and $290 million in pre-payments. In Q2 2026, the company reported revenue of $460 million, a 23.7% increase year-over-year, with a 30% gross margin and normalized earnings per share of $0.88, surpassing expectations. Management aims for $3.6 billion in revenue and $1.2 billion in net income by 2028, contingent on achieving a 45% gross margin and 85% capacity utilization. While the stock trades at a premium and execution risks exist, sustained margin improvement and cash flow conversion support a Buy rating.

Tower Semiconductor's growth story in Silicon Photonics is unfolding as the stock trades near the middle of its annual range. On Pluang, TSEM shares are priced at USD 167.56, down slightly by 0.09% as of Oct 24, 2026 15:41 WIB, with a market cap of $20.28 billion. The typical hold time for this stock on Pluang is 5 days, reflecting moderate investor interest in this technology sector name.