Tower Semiconductor (NASDAQ:TSEM) Trading Down 5.8% – Time to Sell?

Posted by Francis Steltz on Aug 4th, 2026

Tower Semiconductor Ltd. (NASDAQ:TSEM – Get Free Report) shares traded down 5.8% during trading on Tuesday . The company traded as low as $206.40 and last traded at $220.6690. 1,651,132 shares traded hands during trading, a decline of 30% from the average daily volume of 2,362,127 shares. The stock had previously closed at $234.32.

Key Stories Impacting Tower Semiconductor

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

Positive Sentiment: Record quarterly performance: Tower reported record second-quarter revenue and profitability. Adjusted EPS was reported at $0.88, ahead of the $0.67 analyst consensus, while another earnings summary cited GAAP EPS of $0.79 versus expectations of $0.76. Revenue rose 23.7% year over year, and EPS increased substantially from $0.41 in the comparable period. Tower Semiconductor tops second quarter earnings and revenue expectations
Positive Sentiment: Strong third-quarter outlook: Management guided for third-quarter revenue of $494 million to $546 million, above the approximately $490 million consensus estimate. The guidance implies another potential revenue record and supports expectations for continued growth. Tower Semiconductor beats second-quarter estimates and issues strong Q3 revenue outlook
Positive Sentiment: Demand and capacity expansion: Tower is benefiting from demand across key business units and is increasing silicon photonics, or SiPho, capacity ahead of its results. This could strengthen its position in communications and other high-growth applications. Tower Semiconductor ramps up SiPho capacity ahead of Q2 results
Neutral Sentiment: Tower’s balance sheet appears strong, with a low debt-to-equity ratio and substantial liquidity, providing flexibility to fund capacity investments and pursue growth.
Negative Sentiment: The stock’s price-to-earnings ratio above 100 reflects demanding investor expectations. Even with strong results, any slowdown in growth, margin pressure, or guidance disappointment could increase volatility. Tower Semiconductor: Excellent Fundamentals, Demanding Expectations

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. Susquehanna increased their target price on shares of Tower Semiconductor from $180.00 to $330.00 and gave the company a “positive” rating in a research report on Thursday, May 14th. Wedbush increased their price objective on shares of Tower Semiconductor from $140.00 to $300.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Benchmark reiterated a “buy” rating on shares of Tower Semiconductor in a research note on Wednesday, July 15th. Finally, UBS Group restated a “buy” rating on shares of Tower Semiconductor in a research report on Wednesday, July 15th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $276.75.

View Our Latest Report on TSEM

Tower Semiconductor Price Performance

The company has a market cap of $27.42 billion, a price-to-earnings ratio of 113.13 and a beta of 0.90. The company has a current ratio of 5.63, a quick ratio of 4.92 and a debt-to-equity ratio of 0.04. The business has a 50-day moving average price of $248.21 and a 200 day moving average price of $198.38.

Institutional Investors Weigh In On Tower Semiconductor

Hedge funds have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD increased its stake in Tower Semiconductor by 3,222.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,682,152 shares of the semiconductor company’s stock worth $549,779,000 after purchasing an additional 4,541,235 shares in the last quarter. Vanguard Group Inc. lifted its stake in Tower Semiconductor by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 4,338,080 shares of the semiconductor company’s stock valued at $507,317,000 after buying an additional 53,112 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. lifted its stake in Tower Semiconductor by 0.8% during the fourth quarter. Migdal Insurance & Financial Holdings Ltd. now owns 3,002,806 shares of the semiconductor company’s stock valued at $352,589,000 after buying an additional 25,000 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Tower Semiconductor by 214.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,206,467 shares of the semiconductor company’s stock worth $259,083,000 after buying an additional 1,505,421 shares during the period. Finally, Wellington Management Group LLP increased its position in shares of Tower Semiconductor by 0.7% in the third quarter. Wellington Management Group LLP now owns 2,108,004 shares of the semiconductor company’s stock worth $152,409,000 after acquiring an additional 15,461 shares in the last quarter. 70.51% of the stock is owned by hedge funds and other institutional investors.

Tower Semiconductor Company Profile

(Get Free Report)

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.