Tower Semiconductor

Bank of America initiated coverage of Tower Semiconductor with a buy rating and a $367 price target, implying about 63% upside from recent levels and citing a market-leading position in silicon photonics for AI data-center transceivers. Tower reported record Q2 2026 revenue of $460 million and net income of $91 million, up 95% year over year (ex-items). The bank expects SiPho revenue to double in 2026, but notes shares trade at a steep premium versus historical valuations (current P/E ~88.8 vs five‑year average 17.3). » More on finance.yahoo.com

Tower Semiconductor announced an approximately $3 billion expansion of its semiconductor capacity in Japan, supported by $1 billion in government subsidies. Plans include conversion and new construction of 300-mm fabs for silicon photonics and silicon‑germanium; the first phase is scheduled to be operational in Q4 2027. The company raised its 2028 targets to $3.6 billion in revenue and $1.2 billion in net income and said more than 70% of the new capacity is contractually secured through 2028, including $1.3 billion in silicon photonics contracts and $290 million in customer prepayments. The announcement and upgraded guidance drove the stock up about 10% in morning trading. » More on de.investing.com

Tower Semiconductor has shipped over five million coherent photonic integrated circuits to customers through its partnership with Marvell, supplying components for coherent optical transceivers used to link AI-driven data centers. The company highlighted the technical challenges of PIC manufacturing and said it is advancing silicon integration, 3D stacking and V-Groove packaging to improve light guidance. Tower and Marvell described the milestone as validation of their collaboration and said they will continue developing next-generation coherent technology for large-scale data center networks. » More on finance.yahoo.com