Tower Semiconductor (NASDAQ:TSEM) Shares Up 7.5% – Still a Buy?

Tower Semiconductor Ltd. (NASDAQ:TSEM) shares shot up 7.5% during mid-day trading on Wednesday . The stock traded as high as $268.88 and last traded at $268.3330. Approximately 370,952 shares traded hands during trading, a decline of 84% from the average daily volume of 2,377,165 shares. The stock had previously closed at $249.58.

Trending Headlines about Tower Semiconductor

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

• Positive Sentiment: Zacks Research raised its earnings forecasts. Estimates increased to $0.95 EPS for Q3 2026, $1.16 for Q4, $3.50 for full-year 2026 and $5.68 for 2027. The FY2027 forecast rose sharply from $4.42, signaling expectations for accelerating growth.
• Positive Sentiment: Tower’s latest quarterly results exceeded expectations. The company reported $0.88 EPS versus the $0.76 consensus and revenue of $460.1 million versus estimates of $454.7 million. Revenue grew 23.7% year over year, while prior-year EPS was $0.41.
• Neutral Sentiment: Management will participate in two investor conferences—the Jefferies Semiconductor, IT Hardware and Communications Technology Conference on August 25–26 and the Benchmark-StoneX Technology Conference on September 10. The events could provide additional business updates, but no new guidance was announced. Tower Semiconductor investor conference announcement
• Negative Sentiment: CEO Russell Craig Ellwanger sold approximately $45.6 million of TSEM shares. He sold 77,309 shares on August 10 for about $19.7 million and another 104,226 shares on August 11 for about $25.9 million. The transactions reduced his holdings by roughly 27% overall. Although sales may reflect personal diversification or planned transactions, their size can weigh on investor sentiment.

Wall Street Analysts Forecast Growth

TSEM has been the subject of several recent research reports. Benchmark reiterated a “buy” rating on shares of Tower Semiconductor in a research note on Wednesday, August 5th. Susquehanna lifted their price target on shares of Tower Semiconductor from $180.00 to $330.00 and gave the company a “positive” rating in a report on Thursday, May 14th. Wedbush boosted their price objective on shares of Tower Semiconductor from $140.00 to $300.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. National Bank Financial upgraded shares of Tower Semiconductor to a “buy” rating in a research note on Friday, August 7th. Finally, Bank of America assumed coverage on shares of Tower Semiconductor in a report on Friday, August 7th. They issued a “buy” rating and a $367.00 target price on the stock. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $294.80.

Tower Semiconductor Stock Performance

The stock has a market capitalization of $28.44 billion, a P/E ratio of 99.98 and a beta of 0.90. The stock has a 50 day moving average of $244.01 and a 200 day moving average of $204.83. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.31 and a current ratio of 4.91.

Tower Semiconductor (NASDAQ:TSEM) last posted its earnings results on Wednesday, August 5th. The semiconductor company reported $0.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.76 by $0.12. Tower Semiconductor had a return on equity of 9.83% and a net margin of 16.94%.The company had revenue of $460.08 million for the quarter, compared to analysts’ expectations of $454.68 million. During the same period last year, the business posted $0.41 earnings per share. The firm’s quarterly revenue was up 23.7% compared to the same quarter last year. Equities analysts predict that Tower Semiconductor Ltd. will post 3.57 EPS for the current year.

Insider Buying and Selling at Tower Semiconductor

In related news, CEO Russell Craig Ellwanger sold 104,226 shares of Tower Semiconductor stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $248.34, for a total value of $25,883,484.84. Following the sale, the chief executive officer directly owned 526,788 shares in the company, valued at $130,822,531.92. This trade represents a 16.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of TSEM. Hanson & Doremus Investment Management acquired a new stake in shares of Tower Semiconductor in the first quarter valued at approximately $53,000. CIBC Private Wealth Group LLC boosted its position in shares of Tower Semiconductor by 254.2% during the third quarter. CIBC Private Wealth Group LLC now owns 418 shares of the semiconductor company’s stock worth $30,000 after buying an additional 300 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Tower Semiconductor during the fourth quarter worth approximately $52,000. SBI Securities Co. Ltd. grew its holdings in Tower Semiconductor by 344.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 520 shares of the semiconductor company’s stock worth $61,000 after buying an additional 403 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new position in Tower Semiconductor in the 4th quarter worth approximately $76,000. Institutional investors own 70.51% of the company’s stock.

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.