Tower Semiconductor (TSEM) Stock Forecast & Price Target

Tower Semiconductor Ltd is positioned for significant growth, with forecasts indicating a rise in total revenue from $215 million in FY25 to $300 million in FY26, marking increases of 105% and 40%, respectively, primarily driven by its SiPho segment. In FY24, the Infrastructure business generated $241 million, reflecting a robust annual growth of 69%, while the SiPho business alone contributed $105 million, representing a remarkable annual growth rate of 250%. Additionally, increasing customer activity, particularly within the RF Infrastructure business, is expected to benefit from rising budgets allocated to AI technologies, further enhancing the company's growth prospects.

Tower Semiconductor Ltd is facing a substantial downturn, with projections indicating a high-teens decline in its Mobile business through FY25, primarily attributed to weaknesses in the Chinese Android market. Additionally, the company’s RF-SOI revenue forecast for 2025 anticipates a 21% annual decrease, suggesting challenges in semiconductor demand that fall below the company's expectations. Compounding these issues, potential decreases in average selling prices for key electronic devices could further pressure revenues, indicating a precarious financial outlook for the company.