Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 17 Dec, 25 | TSEM | Buy | USD 114.86 | USD 121.0 | USD 128.0 | 5 days | Closed |
6.22%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Tower Semiconductor Ltd., an independent semiconductor foundry, focus on specialty process technologies to manufacture analog intensive mixed-signal semiconductor devices in Israel, the United States, Japan, Europe, and internationally. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The Company also provides design enablement platform for quick and accurate design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.
Revenue Expansion: During Q3 FY25, Tower Semiconductor reported total revenue of USD 396.0 million, compared with USD 370.5 million in Q3 FY24
Increased RF Infrastructure Contribution: In Q3 FY25, RF Infrastructure revenue totaled USD 107 million, accounting for 27% of consolidated revenue, compared with USD 67 million, or 18% of revenue, in Q3 FY24
Lower Operating Profit: For Q3 FY25, Tower Semiconductor reported operating profit of USD 50.6 million, compared with USD 55.8 million in Q3 FY24
Decline in Diluted Earnings per Share: In Q3 FY25, diluted earnings per share stood at USD 0.47, compared with USD 0.49 in Q3 FY24
Tower Semiconductor’s investment case is exposed to execution risk around large-scale silicon photonics capacity expansion, where delays in qualification, utilization ramp-up, or AI infrastructure spending cycles could temporarily pressure margins and earnings despite strong long-term demand visibility
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 114.86 | 103.0 | 121.0 | 128.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Tower Semiconductor presents a differentiated investment opportunity as a pure-play specialty foundry leveraged to secular growth in AI data centers, silicon photonics, RF infrastructure, and power management, rather than cyclical leading-edge logic nodes. In Q3 FY25, the company demonstrated accelerating momentum across its highest-value platforms, particularly silicon photonics (SiPho) and silicon germanium (SiGe), which are increasingly critical to next-generation optical interconnects and AI-driven networking architectures. Management highlighted that SiPho demand is capacity-constrained rather than demand-constrained, underscoring strong long-term visibility.
Financially, Tower combines profitable growth with balance-sheet strength. Q3 FY25 revenue rose to USD 396 million, while net profit remained robust at USD 54 million, supported by margin-accretive infrastructure revenues and disciplined cost control. The company exited the quarter with USD 1.8 billion in current assets and ~7x current ratio, enabling it to self-fund large expansion programs without balance-sheet stress.
Strategically, Tower’s multi-year USD 650 million SiPho and SiGe capacity expansion, fully backed by customer commitments, positions it to materially scale revenues as AI networking transitions toward 800G, 1.6T and eventually 3.2T optical modules. Management’s long-term model targets USD 2.7 billion in annual revenue and USD 500 million in net profit at full utilization, implying substantial operating leverage over the medium term.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Tower Semiconductor (NASDAQ: TSEM) at the closing market price of USD 114.86, as on Dec 16, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TSEM Tower Semiconductor Ltd |
-0.475 0.35% | 136.41 | 8.52 | 18.52 | 2.58 | 1.44 | 2.42 | 7.49 |
| NVDA NVIDIA Corporation |
-5.445 2.93% | 180.16 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
-12.365 3.73% | 318.75 | 139.68 | 28.99 | 17.14 | 12.73 | 19.13 | 40.92 |
| TSM Taiwan Semiconductor Manufacturing |
-5.68 1.66% | 335.68 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
-2.32 0.94% | 243.95 | 244.65 | 48.78 | 11.64 | 4.72 | 11.51 | 62.93 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on December 17, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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