Tower Semiconductor Climbs on Silicon Photonics Expansion Deal

Tower Semiconductor Ltd (NASDAQ:TSEM) shares are up during Monday’s premarket session. The company announced a multi-year agreement for the supply of Indium Phosphide (InP) epiwafers with IQE plc.

This partnership aims to enhance Tower’s capabilities in next-generation optical technologies, which are critical for AI-driven data center infrastructure.

InP Epiwafer Supply Deal

The agreement with IQE includes a minimum purchase commitment from Tower in the first year and reciprocal supply commitments. This will reinforce Tower’s position in the silicon photonics market.

This collaboration is expected to support the production of advanced optical connectivity solutions, crucial for scaling AI infrastructure.

TSEM Earnings Preview And Analyst Price Forecasts

Tower Semiconductor Ltd is slated to provide its next financial update on August 3, 2026 (estimated).

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $276.75. Recent analyst moves include:

TSEM Technical Outlook: Momentum And Key Chart Levels

Tower Semiconductor has shown impressive performance over the past year, with a remarkable 12-month gain of 550.95%. Currently, the stock is trading at $275.20, significantly above its 20-day simple moving average (SMA) by about 5.6%, and well above its 50-day SMA by 18.2%. The 50-day SMA has also crossed above the 200-day SMA, indicating a golden cross, which is a bullish signal.

Focusing on momentum, the moving average convergence divergence (MACD) is currently below its signal line, suggesting that upside pressure is cooling, which may indicate a potential pullback unless it can reclaim that baseline. This cooling momentum contrasts with the stock’s recent price action, which has been strong.

How TSEM Ranks On Value, Growth, Quality And Momentum

Below is the Benzinga Edge scorecard for Tower Semiconductor, highlighting its strengths and weaknesses compared to the broader market:

The Verdict: Tower Semiconductor’s Benzinga Edge signal reveals a growth-heavy profile with strong momentum, indicating that the stock is well-positioned for continued performance in the market. The high quality score further supports its robust fundamentals, making it an attractive option for investors.

TSEM ETF Exposure: Funds With The Biggest Weights

Significance: Because TSEM carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

TSEM Price Action: Tower Semiconductor shares were up 5.16% at $276.48 during premarket trading on Monday. The stock is approaching its 52-week high of $302.86, according to Benzinga Pro data.

Photo via Shutterstock