Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 2 Jun, 26 | TSEM | Buy | USD 268.52 | USD 284.0 | USD 300.0 | 3 days | Closed |
10.62%
|
*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.
Increase in Gross Profit: USD 111.0 Mn in Q1FY26 vs USD 73.2 Mn in Q1FY25
Increase in Revenue: USD 413.6 Mn in Q1FY26 vs USD 358.2 Mn in Q1FY25
Decrease in Cash and Cash Equivalents: USD 243.3 Mn in Q1FY26 vs USD 274.8 Mn in Q1FY25
Increase in Cost of Revenue: USD 302.7 Mn in Q1FY26 vs USD 285.0 Mn in Q1FY25
Tower Semiconductor faces risks related to semiconductor industry cyclicality, execution of large-scale SiPho and SiGe capacity expansion, customer concentration in long-term silicon photonics commitments, geopolitical exposure in Israel, currency fluctuations, supply-chain constraints, and potential delays in technology qualification or fab ramp-up
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 268.52 | 240.0 | 284.0 | 300.0 |
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.
Broad-Based Revenue Growth: Tower Semiconductor delivered a solid Q1FY26 performance, with revenue increasing 15.5% YoY to USD 413.6 million, supported by broad-based growth across major technology platforms. Silicon Photonics led the momentum, while imagers, RF-SOI, power management, and silicon germanium also reported YoY revenue expansion.
Profitability and Margin Expansion: The company demonstrated strong operating leverage, with gross profit rising 51.6% YoY to USD 111.0 million and operating profit nearly doubling to USD 64.6 million in Q1FY26. Net profit attributable to the company increased 62.0% YoY, reflecting improved cost absorption and stronger mix.
Silicon Photonics-Led Visibility: Tower strengthened its long-term revenue visibility through silicon photonics commitments, including USD 1.3 billion of contracted 2027 revenue from its largest SiPho customers. The company also received approximately USD 290 million in customer prepayments, supporting capacity reservation and future growth execution.
Capacity Expansion and Strategic Positioning: Tower continued executing its USD 920 million SiGe and SiPho capacity investment plan across its Israel, U.S., and Japan fabs. Its Japan restructuring toward full ownership of Fab 7 supports a scalable 300mm strategy, aimed at meeting rising demand in optical photonics and AI infrastructure.
Record Revenue Outlook: Management guided Q2FY26 revenue to USD 455 million at the midpoint, representing 22% YoY and 10% QoQ growth, which would mark the highest quarterly revenue in company history. The company also reiterated expectations for sequential revenue and margin growth throughout FY26.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Tower Semiconductor Ltd. (NASDAQ: TSEM) at the current market price of USD 268.52, as on 02 June 2026 at 7:07 am PDT
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 |
19.61 7.34% | 286.74 | 8.52 | 18.52 | 2.58 | 1.44 | 2.42 | 7.49 |
| NVDA NVIDIA Corporation |
6.04 2.95% | 210.69 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
18.45 4.70% | 411.35 | 78.55 | 35.84 | 27.93 | 23.69 | 28.47 | 52.08 |
| TSM Taiwan Semiconductor Manufacturing |
29.97 6.94% | 462.12 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
24.89 4.86% | 537.37 | 108.58 | 40.98 | 13.39 | 7.12 | 12.75 | 60.70 |
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 June 2, 2026. 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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