Skip to main content
Open Hunch It
TSEM Β· Semiconductors Β· Technology

Tower Semiconductor Ltd.

$157.86βˆ’0.6%Close 11/12
Compare TSEM with another stock
Growing?
No: revenue went from $1.7B in FY22 to $1.6B in FY25.
Expensive?
P/E (trailing) 50.8Γ—. Priced 142% above the peer median of 21x.
Analysts?
89% of 9 say buy; average 12-month target $275, 74% above today's price.
Risky?
Much swingier than most large companies: its price swung 85% over the past year (the S&P 500's 14%), and it fell as much as 59% since Nov 2021.
Market cap$17.9B
Revenue (TTM)$1.8B
Net income (TTM)$356M
P/E (trailing)50.8x
52-week closing range$92 – $317
Forward P/E38.8x

Tower Semiconductor Ltd. (TSEM) is a specialty analog and mixed-signal foundry that manufactures wafers for fabless semiconductor companies and IDMs using differentiated process technologies such as RF (RFCMOS), high-performance analog, power management (BCD), CMOS image sensors, non-imaging sensors, SiGe/BiCMOS, silicon photonics, and MEMS; revenue is primarily from wafer fabrication services (plus related process/design enablement).

More about Tower Semiconductor

Market Position

Tower positions as a high-value specialty foundry (primarily on 200mm and select 300mm capacity) competing on process differentiation, engineering/customer support, and multi-region manufacturing footprint (Israel, U.S., and Japan via TPSCo), rather than leading-edge digital nodes.

Key Segments

Key technology/product lines include RF & HPA, Power Management, CMOS Image Sensor, Non-Imaging Sensors, Mixed-Signal/CMOS, Non-Volatile Memory, and MEMS, supported by PDKs/IP and optional MPW shuttle runs.

How has the stock done?

Over the past year TSEM rose 48.3%; the semiconductor ETF (SMH) rose 41.1% and the S&P 500 rose 10.8%.

TSEM +48.3%Semiconductor ETF (SMH) +41.1%
How much it movesRisk
Biggest fall
βˆ’59%

From Jun 22, 2026 to Nov 5, 2026, the deepest drop from a high since Nov 2021

Volatility, past year
85%

How much the price swings in a year; the S&P 500's was 14%

Beta, past year
3.14

When the S&P 500 moves 1%, the stock has moved about 3.1% the same way

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026.

Is the business growing?

Revenue went from $1.7B in FY22 to $1.6B in FY25; net income from $265M to $220M.

RevenueNet income
Show the data
Fiscal yearRevenueNet income
FY22$1.7B$265M
FY23$1.4B$518M
FY24$1.4B$208M
FY25$1.6B$220M

Fiscal years: Tower Semiconductor Ltd.'s annual reports to the SEC.

How it makes money

Of every $100 in revenue, $14.1 ends up as net income. Net margin fell from 15.8% to 14.1% over the past 3 years.

Where each $1 of revenue goesFiscal year ended 2025-12-31
Revenue
Total sales
$1.6B100%
Gross profit
Revenue minus direct costs
$364M23.2% of revenue
Cost of revenue
Direct cost of making or buying goods
$1.2B76.8% of revenue
Operating income
Profit from the core business
$194M12.4% of revenue
Net income
What is left for shareholders after tax
$220M14.1% of revenue
Gross margin, fiscal year
23.2%

βˆ’4.6 pts over 3 years

Operating margin, fiscal year
12.4%

βˆ’5.6 pts over 3 years

Net margin, fiscal year
14.1%

βˆ’1.7 pts over 3 years

Each margin is that line of the income statement divided by revenue. Fiscal year: Tower Semiconductor Ltd.'s annual reports to the SEC.

Where it is in the chip cycle

Gross margin 34.0% and rising for 2 quarters; inventory at 78 days and falling for 2 years; capital spending 35.5% of revenue over the last 4 quarters.

Gross margin over five years, with NVIDIA and Broadcom
Tower Semiconductor 24.8%NVIDIA 75.0%Broadcom 69.1%
Inventory daysBy fiscal year (ends in December)
78 daysDown from 89 days in FY24
Show the data
PeriodInventory days
FY2291
FY2397
FY2489
FY2578

How many days of sales are sitting in stock. Rising inventory days often come before a downturn: chips are being made faster than they sell.

Capital spendingShare of revenue, by quarter
35.5%Of revenue over the 4 quarters to Sep ’26 (highlighted bars)
Show the data
PeriodCapital spending
Sep ’2522.5%
Dec ’2527.0%
Mar ’2637.8%
Jun ’2640.6%
Sep ’2636.2%

Money put into factories and equipment. Heavy spending late in an upswing can leave the industry with too much capacity when demand cools.

Gross margin by fiscal quarter, from SEC filings. Inventory days: year-end inventory over that year's cost of revenue, times 365.

Customers and suppliers

In its latest annual report Tower Semiconductor buys from NTCJ, Intel, Synopsys and 1 more; sells to NTCJ.

Along the supply chainTwo steps either way, as each company’s latest annual report names the others

Suppliers

Intel INTC
Synopsys SNPS
eMemory
NTCJ
TSEMTower Semiconductor

Customers

NTCJ 11%

Partners

NTCJCo-owns Japanese foundry venture49% equity stake in Tower Partners Semiconductor
STShares fab and develops production processes

Changes since the previous annual report (20-F filed Apr 30, 2025)

eMemoryNamed for the first time, as a supplier
Arm ARMNo longer named (was a supplier)
Cadence Design Systems CDNSNo longer named (was a supplier)
Keysight Technologies KEYSNo longer named (was a supplier)
SiemensNo longer named (was a supplier)
NTCJCustomer, share of revenue13% β†’ 11%
Intel INTCNo longer a partner, still a supplier
Show the filing's words
CompanyRoleIn the filing's words
NTCJcustomerβ€œIn 2025, 11% of our revenues were generated from NTCJ, 39% of our revenues were derived from an additional seven customers, each of which generated between 4% to 7% of our revenues, and the remaining 50% of our revenues were derived from many other smaller customers.”
NTCJpartner Β· joint venture with itβ€œTower holds a 51% equity stake in Tower Partners Semiconductor Co., Ltd., incorporated in Japan (Nuvoton Technology Corporation Japan holds the remaining 49% stake), which operates the Uozu E and Tonami CD fabs located in Japan.”
NTCJsupplierβ€œThe fabs’ land and buildings are leased by PSCS (now named NTCJ) to TPSCo under a long-term capital lease, with a term through March 2032.”
STpartner Β· co-develops with itβ€œIn 2021, TSIT, Tower’s wholly-owned Italian subsidiary, entered into a definitive agreement with ST Microelectronics (β€œST”) to share under collaborative arrangement a 300mm facility with ST in Agrate, Italy....TSIT and ST invested in their respective process equipment and have been working to accelerate the process flows’ transfer to the facility, product development, qualification and subsequent ramp-up.”
Intelsupplierβ€œIn September 2023, Tower and Intel signed an agreement under which Intel has committed to build a capacity corridor at Tower’s instructions, in order for Intel to manufacture wafers for Tower’s customers in Intel’s 300mm facility in New Mexico, USA....Recently, Intel has expressed its intention not to perform under the agreement and the parties are presently in a mediation process.”
Synopsyssupplierβ€œ- and license standard cells, I/O, and memory IP from Synopsys, eMemory, and other top suppliers of physical IP.”
eMemorysupplierβ€œ- and license standard cells, I/O, and memory IP from Synopsys, eMemory, and other top suppliers of physical IP.”
Xanadu Quantum Technologies (20-F filed Apr 9, 2026)co-develops with itβ€œOn February 19, 2026, Old Xanadu and Tower Semiconductor Ltd. announced an expansion of their collaboration to develop silicon photonics for photonic quantum computers using Tower Semiconductor’s manufacturing platform.”

Only the companies Tower Semiconductor names in its 20-F filed Apr 30, 2026 (SEC). Named in other companies' filings: those whose own latest annual report or an 8-K since names Tower Semiconductor. The supply chain joins the latest annual reports of the companies on it and the 8-Ks they filed since: a link shows when either side's report names the other, so it grows as more reports are read. Hover a name for the filing's own words.

Is it expensive?

P/E of 50.8x, above the peer median of 21x, so it needs earnings to keep growing to hold up.

50.8Γ—P/E (trailing)

Priced 142% above the peer median of 21x.

Vs. peersP/E, trailing (x)
TSEMPeersPeer median 21x
Show the data
CompanyP/E (trailing)
AMD Β· Advanced Micro Devices, Inc.127Γ—
TSEM Β· Tower Semiconductor Ltd.50.8Γ—
AVGO Β· Broadcom Inc.46.5Γ—
NVDA Β· NVIDIA Corporation21Γ—
MU Β· Micron Technology, Inc.10.8Γ—
SKHY Β· SK hynix Inc.8.8Γ—

What analysts expect

The average analyst price target is $275, 74% above the current price; 89% of 9 analysts rate it a buy; earnings beat estimates in all of the last 3 quarters.

12-month price targetsCurrent price $157.86
12 mo agoTodayIn 12 mo
High target
$335+112%
Average target
$275+74%
Low target
$190+20%
Ratings9 analysts
Strong Buy 1Buy 7Hold 1Sell 0Strong Sell 0

Buy or Strong Buy: 8 analysts (89%). Sell or Strong Sell: 0.

Targets and ratings over the past year16 changes by 7 firms

Over the past year the average of the analysts' latest price targets went from $119.25 to $284.50 (+139%), while TSEM went from $99.09 to $157.86 (+59%). In the past three months targets were cut 3 times and never raised. No upgrades and 1 downgrade over the year; the latest: Wedbush moved it to Neutral from Outperform on Dec 31, 2025.

Average target $284.50TSEMMiddle half of targetsDowngrade
Targets raised, by monthTargets cut
Show every change
DateFirmChangeRatingTarget
Nov 3, 2026WedbushTarget cutNeutral$190.00, was $300.00
Nov 3, 2026SusquehannaTarget cutPositive$305.00, was $355.00
Nov 3, 2026StifelTarget cutBuy$235.00, was $270.00
Sep 25, 2026MizuhoBegan coverageOutperform$300.00
Sep 18, 2026BarclaysBegan coverageOverweight$310.00
Sep 2, 2026StifelBegan coverageBuy$270.00
Aug 7, 2026B of A SecuritiesBegan coverageBuy$367.00
May 14, 2026BenchmarkTarget raisedBuy$335.00, was $230.00
May 14, 2026SusquehannaTarget raisedPositive$330.00, was $180.00
May 14, 2026WedbushTarget raisedNeutral$300.00, was $140.00
Mar 26, 2026BenchmarkTarget raisedBuy$230.00, was $165.00
Feb 13, 2026BarclaysTarget raisedEqual-Weight$142.00, was $114.00
Feb 12, 2026WedbushTarget raisedNeutral$140.00, was $125.00
Feb 12, 2026BenchmarkTarget raisedBuy$165.00, was $150.00
Jan 9, 2026BenchmarkTarget raisedBuy$150.00, was $120.00
Dec 31, 2025WedbushDowngradeNeutral, was Outperform$125.00
Earnings against estimatesLast 3 quarters, per share
Average estimateReported, beat
Show the data
QuarterEstimateReportedSurprise
Sep ’25$0.54$0.55+1.9%
Mar ’26$0.56$0.65+16.1%
Sep ’26$1.07$1.15+7.5%
Expected nextConsensus of Nov 10, 2026

For the fiscal year ending Dec 2026, analysts expect adjusted earnings of $4.07 a share and revenue of $2.0B.

EPS, year ending Dec 2026
$4.07

Adjusted. Range $3.99 to $4.19; 9 analysts

Revenue, year ending Dec 2026
$2.0B

Range $2.0B to $2.0B; 8 analysts

Show the data
PeriodFigureExpectedLow to highAnalystsA year earlierChange
Year ending Dec 2026EPS (adjusted)$4.07$3.99 to $4.199β€”β€”
Year ending Dec 2026Revenue$2.0B$2.0B to $2.0B8β€”β€”
Year ending Dec 2027EPS (adjusted)$7.00$5.73 to $8.0410$4.07 (expected, year to Dec 2026)+72%
Year ending Dec 2027Revenue$2.8B$2.7B to $2.9B9$2.0B (expected, year to Dec 2026)+39%

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Generated $259M in free cash flow over the year, with no dividends and no buybacks. All of the cash stays in the company.

Where a year of cash went4 quarters to Sep 2026
Show the data
LineAmount
Op. cash flow$912M
Capexβˆ’$653M
Free cash flow$259M
Dividendsβ€”
Buybacksβ€”
Cash retained$259M
Free cash flow yield
1.4%

For every $100 of market cap, the company generates about $1.4 in free cash flow a year.

Dividend yield
No dividend

No dividend today; cash goes to growth and share buybacks.

Free cash flow: operating cash flow minus capital spending. Last 4 quarters: Yahoo Finance, buybacks from SEC filings where they have the quarter.

Financial health

Current ratio 6.5, no pressure to repay short-term debt; debt-to-equity 0.1, debt is very low and the balance sheet is solid.

Current ratio
6.5Strong liquidity

Assets that can be turned into cash soon are 6.5x what is owed within a year. 1.5 or higher is comfortable; below 1 needs watching.

Debt-to-equity
0.1Very low debt

For every $1 of shareholder funds, there is $0.1 of debt. The higher the number, the more pressure when the economy weakens.

Net cash
$990MMore cash than debt

Cash and short-term investments of $1.2B against debt of $162M. It also holds $4M of long-term investments, which can be stakes in other companies rather than cash.

AssetsTotal ~$3.3B
Cash
$240M7.1%
Investments
$920M27.7%
Receivables
$220M6.7%
Inventory
$260M7.7%
Property & equipment
$1.6B47.6%
Goodwill
$10M0.2%
Intangibles
$00.1%
Other
$90M2.9%
Liabilities & equityTotal ~$3.3B
Current
$260M7.9%
Long-term
$150M4.6%
Equity
$2.9B87.5%

Latest fiscal year balance sheet. Source: Yahoo Finance.

Who holds it

In the filings of 6 funds whose copy leaves TSEM out (on the exchange, not in the app yet): Mirae Asset Global Investments, Canada Pension Plan Investment Board, Swiss National Bank, Norges Bank, Bridgewater Associates, Maverick Capital.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 11 held TSEM at the end of their latest quarter (for most, Q2 2026). Over that quarter 4 added shares, 5 cut, 2 bought new and 1 sold all. The largest of them is Norges Bank, 763,552 shares worth $198M at Jun 30, 2026, 107.1% more than at Dec 31, 2025.

Funds that added shares
6

2 of them new holders

Funds that cut
6

1 of them sold all

Each fund's change in sharesChange in shares over the latest quarter
Added or newCut or sold all
Show every fund
FundQuarterSharesValueChange in sharesChangeFiled
Norges BankQ2 2026 vs Q4 2025763,552$198M+394,883+107%Aug 12, 2026
Whale Rock Capital ManagementQ2 20260β€”βˆ’1.07MSold allAug 14, 2026
Swiss National BankQ3 2026399,788$93.5Mβˆ’1,256βˆ’0.3%Nov 12, 2026
Canada Pension Plan Investment BoardQ2 2026358,562$92.0M+15,288+4.5%Aug 14, 2026
Renaissance TechnologiesQ3 2026402,935$91.6M+191,886+91%Nov 12, 2026
Mirae Asset Global InvestmentsQ3 2026205,166$46.7M+169,941+482%Nov 3, 2026
Korea InvestmentQ2 202628,393$7.3Mβˆ’1,444βˆ’4.8%Aug 12, 2026
ARK Investment ManagementQ2 202610,126$2.6Mβˆ’7,964βˆ’44%Aug 14, 2026
Nomura HoldingsQ2 20268,041$2.1Mβˆ’52,233βˆ’87%Aug 14, 2026
Bridgewater AssociatesQ2 20267,933$2.1Mβˆ’454,792βˆ’98%Aug 14, 2026
Tudor Investment Corp Et AlQ2 20262,771$722K+2,771NewAug 14, 2026
Maverick CapitalQ2 20262,659$693K+2,659NewAug 14, 2026

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of TSEM at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end. Norges Bank filed its 13F for Q1 2026 confidentially, with no holdings made public, so its row compares Q2 2026 with Q4 2025.

Are insiders buying or selling?

Officers and directors sold $60.0M of TSEM on the open market in the 12 months to Nov 12, 2026; none bought. The largest was Russell Craig Ellwanger (Chief Executive Officer), who sold $60.0M in 37 sales.

Sold
$60.0M

38 sales

Bought
None

0 purchases

Under 10b5-1 plans
0%

Share of the sales' value

Trades on the priceA dot a day, sized by value
TSEMSale
Who tradedOpen-market trades, last 12 months
Russell Craig Ellwanger
Chief Executive Officer
βˆ’$60.0M37 trades
Yoav Chelouche
Director
βˆ’$50K1 trade
Show every trade
DateInsiderRoleTradeSharesPriceValueFiled
Sep 10, 2026Yoav CheloucheDirectorSale232$215.06$50KSep 14, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale3,060$243.32$745KAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale2,507$244.69$613KAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale11,624$245.78$2.9MAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale5,065$246.74$1.2MAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale23,028$248.08$5.7MAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale35,208$248.78$8.8MAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale15,816$249.66$3.9MAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale3,331$250.90$836KAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale2,098$252.74$530KAug 12, 2026
Aug 11, 2026Russell Craig EllwangerChief Executive OfficerSale2,489$253.92$632KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale1,025$245.93$252KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale2,062$246.71$509KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale5,498$248.02$1.4MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale5,559$248.94$1.4MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale1,123$250.05$281KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale6,474$251.04$1.6MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale3,341$252.07$842KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale9,022$253.53$2.3MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale7,343$254.15$1.9MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale3,116$255.24$795KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale9,720$256.56$2.5MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale5,407$257.27$1.4MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale6,486$258.47$1.7MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale2,519$259.94$655KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale5,316$261.03$1.4MAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale1,471$262.16$386KAug 12, 2026
Aug 10, 2026Russell Craig EllwangerChief Executive OfficerSale1,827$263.78$482KAug 12, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale10,899$210.82$2.3MJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale17,173$211.95$3.6MJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale9,797$212.80$2.1MJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale9,878$213.83$2.1MJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale3,025$217.93$659KJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale2,118$219.01$464KJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale4,936$219.82$1.1MJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale4,772$220.88$1.1MJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale1,856$222.48$413KJul 15, 2026
Jul 13, 2026Russell Craig EllwangerChief Executive OfficerSale2,510$234.71$589KJul 15, 2026

From the Form 4s filed with the SEC about Tower Semiconductor Ltd. (13 in the 12 months): purchases (code P) and sales (code S) on the open market by its officers and directors, at the price each filing gives (often an average of the day's trades). A sale is a 10b5-1 sale when its filing says it was made under such a plan, set up in advance. Not counted: 9 other transactions (grants).