Tower Semiconductor (NASDAQ:TSEM) Shares Gap Up – Here’s What Happened

Tower Semiconductor Ltd. (NASDAQ:TSEM) gapped up prior to trading on Tuesday . The stock had previously closed at $229.68, but opened at $271.50. Tower Semiconductor shares last traded at $254.7340, with a volume of 1,045,937 shares trading hands.

More Tower Semiconductor News

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

• Positive Sentiment: Tower Semiconductor unveiled a government-backed plan to expand manufacturing in Japan, including a $1 billion grant from Japan, which lowers the net cost of the project and supports growth. Tower Semiconductor to invest $3 billion in Japan, backed by government grants
• Positive Sentiment: The expansion is designed to increase 300mm silicon photonics and silicon germanium capacity, positioning TSEM to capture demand tied to AI and data center optical connectivity. Tower Semiconductor with METI Support Announces Strategic Capacity Expansion in Japan
• Positive Sentiment: Tower updated its 2028 outlook, targeting $3.6 billion in revenue and $1.2 billion in net profit, suggesting management sees meaningful long-term upside from the project. Tower Semiconductor Stock (TSEM) Soars on Plans to Expand In Japan
• Neutral Sentiment: Management said the first phase should be ready in Q4 2027, while a second facility would be built later if agreements are finalized, so the benefits are still several quarters away. Tower Semiconductor Shares Surge Premarket on Japanese Investment
• Negative Sentiment: The project carries execution and funding risks, including construction delays, equipment/permit issues, and the possibility that customer demand or grant conditions do not unfold as expected. Tower Semiconductor Gets $1B Grant From Japan to Expand Chip Making. Stock Soars 19%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Susquehanna boosted their target price on Tower Semiconductor from $180.00 to $330.00 and gave the stock a “positive” rating in a research report on Thursday, May 14th. Wedbush lifted their price target on Tower Semiconductor from $140.00 to $300.00 and gave the stock a “neutral” rating in a research note on Thursday, May 14th. Finally, Benchmark increased their price objective on shares of Tower Semiconductor from $230.00 to $335.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $276.75.

Tower Semiconductor Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.92 and a current ratio of 5.63. The company has a 50-day moving average of $253.57 and a 200-day moving average of $186.64. The stock has a market capitalization of $29.05 billion, a price-to-earnings ratio of 119.57 and a beta of 0.87.

Hedge Funds Weigh In On Tower Semiconductor

A number of institutional investors have recently made changes to their positions in the stock. Amundi boosted its stake in shares of Tower Semiconductor by 86.8% during the first quarter. Amundi now owns 21,617 shares of the semiconductor company’s stock valued at $771,000 after acquiring an additional 10,042 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Tower Semiconductor by 4.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 99,633 shares of the semiconductor company’s stock valued at $3,553,000 after purchasing an additional 3,954 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Tower Semiconductor by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 95,384 shares of the semiconductor company’s stock valued at $4,135,000 after purchasing an additional 662 shares in the last quarter. Hsbc Holdings PLC purchased a new position in Tower Semiconductor in the 2nd quarter valued at about $438,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Tower Semiconductor during the 2nd quarter worth about $5,809,000. 70.51% of the stock is owned by institutional investors and hedge funds.

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.