Tower Semiconductor (NASDAQ:TSEM) Announces Earnings Results

Tower Semiconductor (NASDAQ:TSEM) announced its quarterly earnings results on Wednesday. The semiconductor company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.03, Briefing.com reports. Tower Semiconductor had a return on equity of 7.16% and a net margin of 12.92%.The business had revenue of $440.21 million during the quarter, compared to the consensus estimate of $439.81 million. During the same quarter last year, the firm posted $0.49 EPS. The company’s quarterly revenue was up 13.7% on a year-over-year basis.

Here are the key takeaways from Tower Semiconductor’s conference call:

• Tower reported Q4 revenue of $440 million (up 11% QoQ and 14% YoY) and Q4 net profit of $80 million (18% margin), driving FY25 revenue of $1.566 billion (+9%) and improved profitability.
• Silicon photonics and SiGe accelerated materially — SiPho revenue reached $228 million in 2025 (Q4 SiPho $95 million, ~ $380M annual run rate) and SiPho/SiGe represented 27% of corporate revenue, supported by expanded production across multiple fabs and a highlighted collaboration with NVIDIA.
• Management increased investment by $270 million for a total of $920 million CapEx to expand SiPho/SiGe capacity to >5x Q4 monthly silicon-photonics shipments, with over 70% of that capacity already reserved or prepaid through 2028 and tool qualification targeted by year-end 2026.
• Intel has indicated it will not perform under the September 2023 Fab 11X agreement and Tower is in mediation; affected flows are being redirected to Fab 7 in Japan, introducing contractual and execution uncertainty.
• Tower unveiled a revised financial model targeting $2.84 billion revenue, ~39% gross margin and $750 million net profit (26.4% margin) by 2028, based on 85% utilization and the $920M CapEx plan — a highly favorable outlook that is forward-looking and dependent on successful execution.

Tower Semiconductor Stock Performance

Shares of NASDAQ:TSEM traded down $2.33 during trading on Wednesday, hitting $134.24. The company’s stock had a trading volume of 5,661,730 shares, compared to its average volume of 2,110,702. The firm has a market cap of $14.88 billion, a price-to-earnings ratio of 78.05 and a beta of 0.89. The company has a debt-to-equity ratio of 0.05, a current ratio of 6.61 and a quick ratio of 5.54. The company has a 50-day moving average of $125.12 and a 200-day moving average of $90.74. Tower Semiconductor has a 12 month low of $28.64 and a 12 month high of $149.57.

Key Stories Impacting Tower Semiconductor

Here are the key news stories impacting Tower Semiconductor this week:

• Positive Sentiment: Q4 results beat consensus: EPS $0.78 vs $0.67 and revenue roughly $440M (up ~13.7% YoY), driven by AI-related demand and stronger margins. Tower Semiconductor beats quarterly profit estimates on AI-driven chip demand
• Positive Sentiment: Company reported record quarterly revenue and highlighted silicon‑photonics and AI as key growth drivers supporting higher utilization and pricing power. Tower Semiconductor Reports Record Revenue for the Fourth Quarter of 2025
• Positive Sentiment: TSEM raised its Q1 sales target and increased planned capex — management frames this as investing to capture AI capacity demand, which could sustain revenue growth longer term. Tower Semiconductor tops Q4 estimates, raises Q1 sales target and capex
• Positive Sentiment: Management described a “massive” capex ramp to expand AI-focused capacity — this supports a long-term growth thesis if demand and margin strength persist. Tower Semiconductor Fires Up AI Growth Engine With Massive Capex Ramp
• Neutral Sentiment: Management issued Q1 revenue guidance in a range ($391.4M–$432.6M) that spans below and above consensus, leaving near-term execution and guide credibility as watchpoints. Tower Semiconductor Ltd (TSEM) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and …
• Neutral Sentiment: Full earnings call transcript and slides are available for deeper detail on product mix, fab ramp timing, and margin outlook. Tower Semiconductor Ltd. (TSEM) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Higher capex and model revision increase execution and near-term cash-flow risk; investors may punish the stock if spend outpaces revenue conversion or if margins disappoint during the ramp. TSEM: Tower Revises Its Model to Higher Investment and High Margins

Hedge Funds Weigh In On Tower Semiconductor

A number of hedge funds have recently added to or reduced their stakes in the stock. Amundi boosted its position in shares of Tower Semiconductor by 86.8% in the 1st quarter. Amundi now owns 21,617 shares of the semiconductor company’s stock worth $771,000 after purchasing an additional 10,042 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Tower Semiconductor by 4.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 99,633 shares of the semiconductor company’s stock valued at $3,553,000 after acquiring an additional 3,954 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Tower Semiconductor by 0.7% in the second quarter. Geode Capital Management LLC now owns 95,384 shares of the semiconductor company’s stock worth $4,135,000 after acquiring an additional 662 shares during the period. Hsbc Holdings PLC acquired a new stake in shares of Tower Semiconductor in the second quarter worth $438,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in shares of Tower Semiconductor during the second quarter worth $5,809,000. 70.51% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on TSEM. Susquehanna increased their price target on Tower Semiconductor from $100.00 to $135.00 and gave the company a “positive” rating in a research report on Tuesday, November 11th. Wedbush lowered shares of Tower Semiconductor from an “outperform” rating to a “neutral” rating and set a $125.00 target price for the company. in a research report on Wednesday, December 31st. Weiss Ratings reiterated a “hold (c)” rating on shares of Tower Semiconductor in a research note on Monday, December 29th. Barclays upped their price target on shares of Tower Semiconductor from $74.00 to $97.00 and gave the company an “equal weight” rating in a research note on Tuesday, November 11th. Finally, Benchmark reaffirmed a “buy” rating and issued a $150.00 price objective (up from $120.00) on shares of Tower Semiconductor in a report on Friday, January 9th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $126.75.

Tower Semiconductor Company Profile

Tower Semiconductor, traded on NASDAQ under the symbol TSEM, is a specialty foundry company that provides analog and mixed-signal semiconductor manufacturing services to a broad array of customers worldwide. The company focuses on delivering tailored process technologies for high-growth markets, including radio frequency (RF), power management, imaging, automotive electronics, and Internet of Things (IoT) applications. By combining deep process know-how with flexible manufacturing capabilities, Tower Semiconductor supports the development and volume production of advanced semiconductor devices for fabless and integrated device manufacturer customers.

The company’s technology portfolio spans standard and specialty processes such as CMOS, BiCMOS, high-voltage, radio frequency, silicon photonics, micro-electromechanical systems (MEMS) and image sensor production.