Tower Semiconductor announces Q3 adjusted EPS of 55 cents, surpassing consensus estimate of 54 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 10 2025
0mins
Should l Buy TSEM?
Q3 Revenue Performance: Tower Semiconductor reported Q3 revenue of $396 million, slightly exceeding the consensus estimate of $394.98 million.
CEO's Statement on Growth: CEO Russell Ellwanger highlighted strong year-over-year revenue growth in core technologies such as Power Management, Image Sensors, and 65nm RF Mobile.
Market Position and Future Growth: The company holds a leading position in SiGe and SiPho technologies for optical transceivers, which, along with increasing demand from data centers, positions Tower for significant future growth.
Profitability Outlook: The focus on value-add solutions is expected to enhance both top and bottom line growth due to their accretive margins.
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Analyst Views on TSEM
Wall Street analysts forecast TSEM stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 128.350
Low
114.00
Averages
134.80
High
150.00
Current: 128.350
Low
114.00
Averages
134.80
High
150.00
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.
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- Technological Innovation: Tower Semiconductor and Scintil Photonics have jointly launched the world's first heterogeneously integrated DWDM laser source, LEAF Light™, which leverages Tower's silicon photonics platform to meet the stringent demands for high bandwidth and low latency in AI infrastructure, thereby advancing the development of next-generation AI systems.
- Market Potential: The AI networking market is projected to reach $200 billion by 2030, and as server interconnects transition to multirack CPO, the demand for DWDM laser sources is expected to rise significantly, helping hyperscale data centers improve GPU utilization and return on investment.
- Manufacturing Capacity: Tower Semiconductor's multi-site silicon photonics manufacturing capabilities ensure resilient capacity and supply continuity, enabling the fulfillment of hyperscale deployment needs and providing customers with a clear path from evaluation to volume production.
- Strategic Partnership: This collaboration not only strengthens the long-term relationship between Tower and Scintil but also promotes the development of optical interconnect solutions through the introduction of DWDM laser technology, addressing the urgent demand for higher bandwidth and lower energy consumption in AI data centers.
See More
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- Collaboration Expansion: Tower Semiconductor has deepened its collaboration with Canadian quantum computing firm Xanadu to develop advanced silicon photonics for fault-tolerant quantum computers, marking a continued investment and innovation in the quantum computing sector.
- Process Optimization: The co-engineered production process and material stack focus on optimizing ultra-low loss silicon nitride and integrated photodiodes, leveraging Tower's high-volume manufacturing platform to enhance scalability and efficiency of quantum systems.
- Market Application Potential: The outcomes of this collaboration are expected to have broad applications in quantum computing, data centers, telecommunications, and automotive markets, highlighting the potential commercial value and market demand for quantum photonic computing across various industries.
- Manufacturing Foundation Strengthening: The expanded collaboration aims to strengthen the manufacturing foundation required for commercial-scale photonic quantum computing, driving technological advancements to meet future market demands for high-performance computing.
See More
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- Collaboration Expansion: Tower Semiconductor and Xanadu announced an expansion of their partnership to develop fault-tolerant quantum computers based on a high-volume silicon photonics platform, which is expected to significantly enhance both companies' competitive positions in the quantum computing market.
- Innovative Production Flow: The co-engineered custom material stack ensures scalability and performance for quantum hardware, meeting the demands of increasingly complex systems, thereby laying a solid foundation for the realization of large-scale quantum computing.
- Technological Breakthrough: Xanadu's CEO stated that the collaboration with Tower has enabled the transition of hardware from concept to prototype to demonstrator systems within a scalable manufacturing environment, showcasing the synergistic effects of their architectural and fabrication innovations.
- Broad Market Prospects: Tower's VP highlighted that this collaboration not only reinforces its applicability in quantum computing but also expands opportunities across multiple advanced domains, including data centers, telecom, and automotive, indicating significant future growth potential.
See More
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- Weekly Index Losses: The S&P 500 dropped 1.4% for the week, the Dow declined by 1.2%, and the Nasdaq recorded a 2.1% weekly loss, indicating a broader trend of market weakness across major indices.
- Analyst Rating Discrepancies: While Wall Street analysts issue new stock picks daily, investors face challenges due to significant variations in ratings and price targets among analysts, which undermines market confidence.
- Investor Confusion: The inconsistency in analysts' predictive accuracy leaves investors confused about which opinions to trust, potentially impacting their investment decisions and overall market participation.
See More
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- Technological Innovation: Tower Semiconductor and Scintil Photonics have jointly launched the world's first heterogeneously integrated Dense Wavelength Division Multiplexing (DWDM) laser source, utilizing Scintil's SHIP™ technology to meet the demands for high bandwidth and low latency in AI infrastructure, marking a significant technological breakthrough in the AI sector.
- Market Potential: The AI networking market is projected to reach $200 billion by 2030, with DWDM laser sources serving as essential components of next-generation AI infrastructure, significantly enhancing GPU utilization and hyperscaler ROI, thereby driving the market towards optical architectures.
- Production Capacity: Tower Semiconductor's multi-site silicon photonics manufacturing capabilities ensure alignment with hyperscaler demands, providing flexible capacity and supply continuity that supports high-volume hyperscale deployments and meets customer evaluation needs for DWDM CPO programs.
- Strategic Partnership: This collaboration not only strengthens the long-term partnership between Tower Semiconductor and Scintil but also promotes the development of next-generation scale-up architectures through the introduction of the LEAF Light™ laser source technology, showcasing both companies' leadership in the AI infrastructure domain.
See More
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