
Tower Semiconductor (TSEM) Stock Forecast & Price Target
Tower Semiconductor (TSEM) Analyst Ratings
Bulls say
Tower Semiconductor Ltd is demonstrating a robust upward trend in fab utilization rates, particularly with Fab 3 in Newport Beach reaching 65% capacity, alongside Fab 5 in Japan increasing to 60%, indicating strong demand for SiGe and SiPho products and a significant recovery in Power applications. The company’s aggressive ramp in its Silicon Photonics portfolio, contributing approximately $30 million to total revenue in Q3, reflects a growing market presence with revenue from this segment rising from less than $20 million in Q2. Additionally, Tower is poised for continued growth due to the expansion of its 300 millimeter 65 nanometer BCD platform, which targets lower-voltage consumer device markets while sustaining strong performance in its industrial and automotive sectors.
Bears say
Tower Semiconductor Ltd is presently experiencing a decrease in utilization at its Fab 2, with capacity dropping from 67% to approximately 60%, indicating operational challenges as the company prepares for the consolidation of its manufacturing facilities. The potential decline in average selling prices of key electronic product categories could compel Tower to decrease its own selling prices, thereby likely impacting revenues and profitability negatively. Furthermore, the anticipated reduction in customer orders due to the closure of Fab 1, along with the risks associated with maintaining technology processes and achieving acceptable production yields, represent significant concerns for the company's future financial stability.
This aggregate rating is based on analysts' research of Tower Semiconductor and is not a guaranteed prediction by Public.com or investment advice.
Tower Semiconductor (TSEM) Analyst Forecast & Price Prediction
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