Tower Semiconductor Ltd's stock price fell by 5.05% during regular trading, crossing below the 5-day SMA. This decline occurs despite the broader market's positive performance, with the Nasdaq-100 up 0.84% and the S&P 500 up 0.59%.
The drop in Tower Semiconductor's stock can be attributed to a recent downgrade by Wedbush, which lowered its rating from outperform to neutral, citing pressure from high component prices affecting mobile revenues. Although the company's fundamentals remain strong, the downgrade reflects limited upside potential as shares are trading near the target price of $125.
This downgrade may lead to increased caution among investors, despite the company's optimistic revenue guidance for the fourth quarter and ongoing strategic investments. The market's overall strength indicates that the decline in Tower Semiconductor's stock is more a result of sector rotation rather than a reflection of its underlying business performance.
Wall Street analysts forecast TSEM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSEM is 134.80 USD with a low forecast of 114.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast TSEM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSEM is 134.80 USD with a low forecast of 114.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 138.930
Low
114.00
Averages
134.80
High
150.00
Current: 138.930
Low
114.00
Averages
134.80
High
150.00
Benchmark
Buy
maintain
$120 -> $150
2026-01-09
Reason
Benchmark
Price Target
$120 -> $150
AI Analysis
2026-01-09
maintain
Buy
Reason
Benchmark raised the firm's price target on Tower Semiconductor to $150 from $120 and keeps a Buy rating on the shares after having hosted members of Tower's management team for "a highly informative" investor fireside chat. The firm came away increasingly encouraged by Tower's significant leadership in the RF Infrastructure connectivity market, the analyst tells investors.
Wedbush
Outperform -> Neutral
downgrade
$125
2025-12-31
Reason
Wedbush
Price Target
$125
2025-12-31
downgrade
Outperform -> Neutral
Reason
Wedbush downgraded Tower Semiconductor to Neutral from Outperform with an unchanged price target of $125.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for TSEM
Unlock Now
Wedbush
Outperform -> Neutral
downgrade
$125
2025-12-31
Reason
Wedbush
Price Target
$125
2025-12-31
downgrade
Outperform -> Neutral
Reason
As previously reported, Wedbush downgraded Tower Semiconductor to Neutral from Outperform with a $125 price target. The firm cites valuation for the downgrade. Wedbush believes that the positive fundamental story around SiPh which has underpinned its constructive opinion on Tower Semiconductor since its initiation remains intact. But Tower Semiconductor is approaching the firm's target price and the 25-times multiple it uses to value Tower Semiconductor ostensibly already assumes some upside vs. its current estimates, Wedbush argues.
Benchmark
Buy
maintain
$73 -> $120
2025-11-11
Reason
Benchmark
Price Target
$73 -> $120
2025-11-11
maintain
Buy
Reason
Benchmark raised the firm's price target on Tower Semiconductor to $120 from $73 and keeps a Buy rating on the shares. Tower, which posted "another solid quarter and outlook," led by strength in its AI Data Center levered RF Infrastructure business, continued to deliver on its "multi-quarter streak of increasingly strong results," the analyst tells investors in a post-earnings note.
About TSEM
Tower Semiconductor Ltd. operates as an independent semiconductor foundry focused primarily on specialty process technologies. The Company focuses on producing integrated circuits (ICs) based on the design specifications of its customers. The Company manufactures semiconductors for its customers primarily based on third-party designs. It offers process manufacture geometries of 0.35, 0.50, 0.55, 0.60, 0.80-micron and above on 150 millimeter wafers, 0.35, 0.18. 0.16, 0.13 and 0.11-micron on 200 millimeter wafers, and 65 nanometer and 45 nanometer on 300 millimeter wafers. It also provides design support and technical services. The Company's ICs are incorporated into a range of products in markets, including consumer electronics, personal computers, communications, automotive, industrial and medical device products. The Company has manufacturing facilities in the United States, Israel and Japan.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
