Tower Semiconductor (NASDAQ:TSEM) Trading 5.1% Higher – Still a Buy?

Posted by Brenda Bartman on Sep 18th, 2026

Tower Semiconductor Ltd. (NASDAQ:TSEM – Get Free Report) shares were up 5.1% during mid-day trading on Wednesday . The stock traded as high as $207.45 and last traded at $205.0350. 181,588 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 2,235,901 shares. The stock had previously closed at $195.12.

Key Stories Impacting Tower Semiconductor

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

Positive Sentiment: The optical engines are designed for scale-out and scale-up AI interconnects, addressing demand for higher-performance connectivity in data centers. The start of volume shipments provides evidence of commercial traction and could support future revenue growth for Tower. NewPhotonics and Tower Semiconductor Begin High-Volume Shipments of Laser-Integrated Optical Engine PICs
Positive Sentiment: Reports characterized the products as laser-integrated AI optical engine chips and highlighted high-volume shipments, helping explain the strong move in TSEM and the elevated trading activity. Why Is Tower Semiconductor Stock Soaring Thursday?
Positive Sentiment: The consensus price target for Tower Semiconductor was reportedly raised 13.74% to $332.93, signaling improved analyst expectations and adding to the bullish sentiment. Tower Semiconductor Consensus Price Target Raised
Neutral Sentiment: An insider, Yoav Chelouche, sold 232 shares. The relatively small transaction is a potential supply signal but does not appear large enough, based on the reported information, to materially change the investment case. Yoav Chelouche Sells Tower Semiconductor Shares

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on TSEM shares. Stifel Nicolaus started coverage on shares of Tower Semiconductor in a research report on Tuesday, September 1st. They set a “buy” rating and a $270.00 price target on the stock. Barclays initiated coverage on shares of Tower Semiconductor in a research report on Friday. They issued an “overweight” rating and a $310.00 price objective for the company. Benchmark reaffirmed a “buy” rating on shares of Tower Semiconductor in a research note on Wednesday, August 5th. National Bank Financial upgraded shares of Tower Semiconductor to a “buy” rating in a research report on Friday, August 7th. Finally, Bank of America started coverage on shares of Tower Semiconductor in a research note on Friday, August 7th. They set a “buy” rating and a $367.00 price target on the stock. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Tower Semiconductor has an average rating of “Moderate Buy” and an average price target of $318.67.

Check Out Our Latest Stock Analysis on Tower Semiconductor

Tower Semiconductor Stock Performance

The firm has a fifty day moving average of $226.33 and a 200-day moving average of $220.05. The firm has a market cap of $24.65 billion, a P/E ratio of 86.66 and a beta of 0.88. The company has a quick ratio of 4.31, a current ratio of 4.91 and a debt-to-equity ratio of 0.04.

Tower Semiconductor (NASDAQ:TSEM – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The semiconductor company reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.12. The firm had revenue of $460.08 million during the quarter, compared to analysts’ expectations of $454.68 million. Tower Semiconductor had a return on equity of 9.83% and a net margin of 16.94%.The company’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.41 EPS. Research analysts predict that Tower Semiconductor Ltd. will post 3.58 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Tower Semiconductor news, CEO Russell Ellwanger sold 104,226 shares of Tower Semiconductor stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $248.34, for a total transaction of $25,883,484.84. Following the completion of the sale, the chief executive officer owned 526,788 shares of the company’s stock, valued at approximately $130,822,531.92. The trade was a 16.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Yoav Chelouche sold 232 shares of the company’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $215.06, for a total transaction of $49,893.92. Following the sale, the director owned 33,734 shares of the company’s stock, valued at $7,254,834.04. The trade was a 0.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 181,767 shares of company stock valued at $45,610,065. 1.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Tower Semiconductor

A number of institutional investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. raised 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 valued at $259,083,000 after purchasing an additional 1,505,421 shares during the last quarter. Capital International Investors acquired a new position in Tower Semiconductor during the fourth quarter worth $222,530,000. Turiya Advisors Asia Ltd bought a new position in Tower Semiconductor in the fourth quarter valued at $172,848,000. Janus Henderson Group PLC grew its position in Tower Semiconductor by 0.6% in the first quarter. Janus Henderson Group PLC now owns 1,081,175 shares of the semiconductor company’s stock valued at $189,723,000 after purchasing an additional 6,458 shares in the last quarter. Finally, Situational Awareness LP increased its stake in Tower Semiconductor by 53.6% in the 4th quarter. Situational Awareness LP now owns 723,004 shares of the semiconductor company’s stock valued at $84,895,000 after buying an additional 252,404 shares during the last quarter. 70.51% of the stock is owned by institutional investors and hedge funds.

About Tower Semiconductor

(Get Free Report)

Tower Semiconductor Ltd. (NASDAQ:TSEM) is a specialty semiconductor foundry that manufactures integrated circuits for fabless chip companies, integrated device manufacturers and original equipment manufacturers. The company focuses on analog and mixed-signal technologies rather than high-volume digital logic, providing process development, wafer manufacturing, design enablement and other foundry services.

Its technology portfolio includes radio-frequency and high-performance analog circuits, power management, CMOS image sensors, medical and industrial sensors, silicon photonics, microelectromechanical systems (MEMS), and automotive and industrial semiconductor solutions.