Tower Semiconductor has beaten earnings estimates in all 4 of the last 4 quarters with an average 10.9% positive surprise and shows strong revenue and earnings growth scores of 8.2 out of 10, but a forward P/E of 50x with a PEG of 8.26 reflects expensive growth expectations that leave little margin for error.
Thesis pillars
- Strong Growth Semiconductor Profile—
- Expensive Valuation High Pe↑Improving
- Perfect Earnings Beat Streak Growth→Stable
- +1 more pillar — see the Why tab for full reasoning
Tower Semiconductor Ltd. (TSEM) Stock Analysis
Technology · Semiconductors
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $220.50 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Expensive valuation; Earnings in 5 days (event risk).
Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho,... Read more
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $220.50 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Expensive valuation; Earnings in 5 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and earnings proximity 5d<=7d. Suitability: moderate.
Recent developments
updated 2026-07-31Recent Developments — Tower Semiconductor Ltd.
Latest news
- NEWS Tower Semiconductor(TSEM.US) Officer Sells US$14.4 Million in Common Stock - Moomoo — Moomoo negative
- NEWS Tower Semiconductor (TSEM) CEO sells 66,964 shares under plan - Stock Titan — Stock Titan negative
- NEWS Benchmark reiterates Tower Semiconductor stock Buy on Japan capacity - Investing.com — Investing.com positive
- NEWS Is Tower Semiconductor (TSEM.US) undervalued? Wedbush says silicon photonics capacity expansion will unlock growth oppor — Moomoo positive
- NEWS Tower Semiconductor's expansion in Japan likely to aid outlook, Wedbush says (TSEM:NASDAQ) - Seeking Alpha — Seeking Alpha positive
Generated 2026-07-31T08:33:41Z.
Upcoming dated catalysts
Thesis
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Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.6/10 is below the 5.0 floor at $220.50 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Expensive valuation; Earnings in 5 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $196.38. Score 5.4/10, moderate confidence.
Take-profit target: $273.04 (+29.3% upside). Prior stop was $196.38. Stop-loss: $196.38.
Earnings in 5 days (event risk); Expensive valuation; Negative momentum.
Tower Semiconductor Ltd. trades at a P/E of 94.4 (forward 32.3). TrendMatrix value score: 3.1/10. Verdict: Sell.
11 analysts cover TSEM with a consensus score of 4.0/5. Average price target: $314.
What does Tower Semiconductor Ltd. do?Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms...
Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, wafers, and integrated power management. It also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical devices. Tower Semiconductor Ltd. was incorporated in 1993 and is headquartered in Migdal Haemek, Israel