Tower Semi Guides Q3 Revenue 6% Above Street on AI Chip Boom
TSEM has more than doubled off its 52-week low of $43.12.
Summary
Tower Semiconductor delivered a clean beat-and-raise quarter. Q2 revenue of $460M topped the $454.7M consensus, and adjusted EPS of $0.79 beat by $0.03. The real story is the Q3 guidance: $520M at the midpoint, 6% above the $490M Street estimate, driven by surging silicon photonics demand from AI infrastructure buildouts. CEO Ellwanger disclosed the silicon photonics annual revenue run rate hit $680M in Q2—nearly 4x the $180M a year ago—and expects it to exceed $1B by Q4. This follows the $3B Japan expansion announced last month and the $1.3B in 2027 supply agreements secured in May, underscoring a multi-year growth trajectory. The magnitude of the guidance raise and the accelerating silicon photonics ramp make this a material positive surprise that reshapes near-term earnings expectations.
At the time of this announcement, TSEM was trading at $228.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $26.2B. The 52-week trading range was $43.12 to $319.94. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.