Tower Semiconductor Ltd. (NASDAQ:TSEM) is among the 12 Best Tech Stocks that Beat Earnings Estimates. On February 13, 2026, Barclays raised its price target on Tower Semiconductor Ltd. (NASDAQ:TSEM) to $142 from $114 and maintained an Equal Weight rating. Also on February 12, 2026, Wedbush raised its price target to $140 from $125 and kept a Neutral rating, viewing the quarterly update as largely positive as management lifted SiPh investment and revised longer-term targets to reflect greater benefit from ...

Core Insights - Tower Semiconductor and Xanadu are expanding their collaboration to develop advanced silicon photonics for fault-tolerant quantum computers, leveraging Tower's high-volume silicon photonics platform [1][3] - The partnership aims to create a manufacturing-aligned platform for next-generation photonic quantum hardware, focusing on scalability and performance for large-scale quantum information processing [2][4] Company Developments - Xanadu's CEO highlighted the importance of the collaboration with Tower in transitioning their hardware from concept to prototype, emphasizing the combination of architectural breakthroughs and manufacturing expertise [3] - Tower Semiconductor's Vice President noted the broad applicability of their platform across various advanced domains, including quantum computing, data centers, telecom, and automotive applications [3] Technical Focus - Current efforts are directed at optimizing critical components using standard product flows for ultra-low loss silicon nitride (SiN) and integrated photodiodes, validating Xanadu's photonic circuit designs on a high-volume manufacturing platform [4]

Strengthening the manufacturing foundation for commercial-scale photonic quantum computing MIGDAL HAEMEK, Israel, and Toronto, ON, February 19, 2026 - Tower Semiconductor, the leading foundry of high-value analog semiconductor solutions, and Xanadu, a leading photonic quantum computing company, today announced an expansion of their collaboration in developing advanced silicon photonics for fault tolerant quantum computers based on Tower’s high-volume silicon photonics platform. These developments build on p ...

Combined with Tower’s multi-site global footprint, Scintil’s unique SHIP™ platform is ready to take on the challenging requirements of the next generation Hyperscale AI Infrastructure MIGDAL HAEMEK, Israel, and GRENOBLE, France, February 17, 2026 - Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions, and Scintil Photonics, the technology leader in Heterogeneous Integrated Photonics for next-generation AI infrastructure, today announced availability of t ...

MIGDAL HAEMEK, Israel and GRENOBLE, France, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions, and Scintil Photonics, the technology leader in Heterogeneous Integrated Photonics for next-generation AI infrastructure, today announced availability of the world’s first heterogeneously integrated Dense Wavelength Division Multiplexing (DWDM) laser sources for AI infrastructure using Scintil’s SHIP™ (Scintil Heterogeneous ...

On February 11, Turiya Advisors Asia Ltd disclosed a new position in Tower Semiconductor (NASDAQ:TSEM), acquiring 1,472,045 shares in an estimated $172.85 million trade. What happened According to a Securities and Exchange Commission (SEC) filing dated February 11, Turiya Advisors Asia Ltd reported a new position in Tower Semiconductor by acquiring 1,472,045 shares. As of December 31, the new holding contributed $172.85 million in reported value, reflecting both the acquisition and share price movement. ...

Core Viewpoint - Tower Semiconductor Ltd. (TSEM) reported mixed Q4 and full-year results, which did not meet investor expectations for continued momentum [1] Financial Performance - The financial results for Q4 and the full year were not aligned with investor anticipations, indicating potential challenges ahead for the company [1]

Financial Data and Key Metrics Changes - The company reported Q4 2025 revenue of $440 million, reflecting an 11% quarter-over-quarter growth and a 14% year-over-year growth, meeting the target for sequential growth [6][36] - Full year revenue for 2025 was $1.566 billion, a $130 million or 9% increase compared to 2024 [7][39] - Q4 net profit was $80 million, representing an 18% net margin, up from 11% in Q1 2025, 13% in Q2 2025, and 14% in Q3 2025 [6][37] - Full year net profit for 2025 was $220 million, or $1.97 basic and $1.94 diluted earnings per share, compared to $208 million in 2024 [39] Business Line Data and Key Metrics Changes - RF infrastructure revenue increased by 75% year-over-year, driven by the adoption of silicon photonics in 800G and 1.6T pluggable transceivers [9] - Silicon germanium and silicon photonics revenues accounted for 27% of corporate revenues, totaling $421 million, up from $241 million in 2024 [10] - Power Management grew by 20% year-over-year, representing 16% of corporate revenues in 2025 [22] - Sensors and displays grew by 10% year-over-year, also representing 16% of corporate revenue [24] Market Data and Key Metrics Changes - RF mobile represented 23% of corporate revenue in 2025, with a 15% year-over-year decline due to a strategic shift towards higher value offerings [19] - The company noted strong demand for silicon photonics, with over 70% of total capacity reserved or in the process of being reserved through 2028 [27] Company Strategy and Development Direction - The company is focusing on expanding its silicon photonics and silicon germanium capacity, with a total CapEx plan of $920 million, including an additional $270 million announced for 2026 [45][27] - The updated financial model targets $2.84 billion in annual revenue by 2028, reflecting a significant increase from 2025 levels [50] - The company aims to achieve a gross margin of approximately 40% and a net profit of $750 million by 2028 [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting future demand, citing strong customer partnerships and a robust operational execution plan [78][85] - The company acknowledged potential concerns regarding memory shortages in the mobile market but emphasized proactive planning to mitigate risks [90][92] - Management highlighted the importance of maintaining strong relationships with both customers and suppliers to ensure operational success [86] Other Important Information - The company has successfully ramped silicon photonics production in multiple fabs and is on track for significant capacity increases [12][27] - Utilization rates for various fabs were reported, with Fab 3 at 85% and Fab 7 fully utilized, indicating strong operational efficiency [28] Q&A Session Summary Question: Clarification on NVIDIA collaboration - Management clarified that the partnership with NVIDIA involves output parameters for photonics and drivers, not direct shipping to NVIDIA [56] Question: Impact of increased silicon photonics capacity - Management confirmed that the 5x capacity increase is in response to total demand, including from NVIDIA [57] Question: Concerns about high voltage capabilities for AI servers - Management stated that while they do not currently have an 800-volt platform on an IC, they have higher voltage IC capabilities [61] Question: Clarification on shipping to NVIDIA - Management confirmed that they do not ship directly to NVIDIA but through module makers [64] Question: Timeline for CapEx rollout - Management indicated that the majority of the $920 million CapEx should be online by the third quarter of 2026, with qualification processes ongoing [70] Question: Expectations for silicon photonics contribution - Management expressed confidence in meeting demand and operational execution for silicon photonics in 2026 and 2027 [78][85] Question: Concerns about memory shortages - Management acknowledged concerns regarding memory shortages but emphasized proactive planning to mitigate potential impacts [90][92]

Financial Data and Key Metrics Changes - The company reported Q4 2025 revenue of $440 million, reflecting an 11% quarter-over-quarter growth and a 14% year-over-year growth, meeting the target for sequential growth [6][37] - Q4 net profit was $80 million, representing an 18% net margin, up from 11% in Q1 2025, 13% in Q2 2025, and 14% in Q3 2025, indicating value-based growth driven by technology mix enrichment [6][38] - Full year 2025 revenue reached $1.566 billion, a $130 million or 9% increase compared to 2024 [7][40] Business Line Data and Key Metrics Changes - RF infrastructure revenue increased by 75% year-over-year, driven by hyperscaler adoption of silicon photonics in 800G and 1.6T pluggable transceivers [9] - Silicon germanium and silicon photonics revenues accounted for 27% of corporate revenues, totaling $421 million, up from $241 million in 2024 [10] - Power Management grew 20% year-over-year, representing 16% of corporate revenues in 2025 [23] - Sensors and displays grew 10% year-over-year, also representing 16% of corporate revenue [25] Market Data and Key Metrics Changes - RF mobile represented 23% of corporate revenue in 2025, with a 15% year-over-year decline due to a strategic shift towards higher value optical and RF offerings [20] - The company is experiencing strong demand for silicon photonics, with over 70% of total SiPho capacity reserved or in the process of being reserved through 2028 [28] Company Strategy and Development Direction - The company is increasing its CapEx plan for 2026 to accommodate stronger customer demand, with a total investment of $920 million aimed at expanding capacity [28][46] - The updated financial model targets $2.84 billion in annual revenue by 2028, reflecting a significant increase from 2025 levels [34][51] - The company is focusing on partnerships with leading customers, such as NVIDIA, to enhance technology offerings and manufacturing agility [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the updated financial model by 2028, citing strong customer demand and operational execution as key factors [80][87] - Concerns were raised regarding potential memory shortages impacting the mobile market, but management emphasized proactive planning and flexibility in production [92] Other Important Information - The company achieved a gross profit of $118 million in Q4 2025, a 26% increase from the previous quarter [38] - The effective tax rate for Q4 2025 was exceptionally low at 2% due to a non-recurring tax benefit [39] Q&A Session Summary Question: Clarification on NVIDIA collaboration - The company clarified that its role involves output parameters for photonics and alignment of supply needs, rather than direct shipping to NVIDIA [57] Question: Capacity increase related to NVIDIA demand - Management confirmed that the planned capacity increase is in response to total demand, including from NVIDIA [58] Question: Power business capabilities for high voltage - The company indicated it does not currently have an 800-volt platform on an IC but has higher voltage IC capabilities [63] Question: Shipping through resellers to NVIDIA - It was confirmed that the company ships through module makers or integrators rather than directly to NVIDIA [66] Question: CPO and end-to-end offerings - The company is working on multiple architectures for co-packaged optics but is not directly packaging CPUs [69] Question: Timeline for CapEx rollout - Management expects the majority of the $920 million CapEx to be online by Q3 2026, with full qualification targeted by December [72] Question: Silicon photonics contribution visibility - Management expressed confidence in the demand for silicon photonics and the operational execution needed to meet it [80][87] Question: Concerns about memory shortages - Management acknowledged concerns about memory shortages but emphasized close collaboration with customers to mitigate risks [92]

Financial Data and Key Metrics Changes - Company revenue for Q4 2025 was $440 million, reflecting an 11% quarter-over-quarter growth and a 14% year-over-year growth, meeting the target for sequential growth [3][4] - Full year revenue for 2025 was $1.566 billion, a $130 million or 9% increase compared to 2024 [4][23] - Net profit for Q4 2025 was $80 million, or an 18% net margin, up from 11% in Q1 2025, indicating a value-based growth driven by technology mix enrichment [4][22] - Gross profit for Q4 2025 was $118 million, a 26% increase compared to the prior quarter [22] Business Line Data and Key Metrics Changes - RF infrastructure revenue increased by 75% year-over-year, driven by the rapid adoption of silicon photonics [5] - Silicon germanium and silicon photonics revenues represented 27% of corporate revenues, totaling $421 million, up from $241 million in 2024 [6] - Power Management grew 20% year-over-year, representing 16% of corporate revenues in 2025 [13] - Sensors and displays grew 10% year-over-year, representing 16% of corporate revenue [15] Market Data and Key Metrics Changes - RF mobile represented 23% of corporate revenue in 2025, with a 15% year-over-year decline due to a shift towards higher value optical and RF mix [12] - The company is experiencing strong demand for silicon photonics, with over 70% of total SiPho capacity reserved or in the process of being reserved through 2028 [17] Company Strategy and Development Direction - The company is increasing its CapEx plan for 2026 to accommodate strong customer demand, with a total investment of $920 million aimed at expanding silicon photonics and silicon germanium capacity [9][26] - The updated financial model targets $2.84 billion in annual revenue by 2028, reflecting a significant increase from 2025 [20][29] - The company is focusing on partnerships with lead customers to enhance its technology offerings and manufacturing capabilities [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the revised financial model by 2028, citing strong customer demand and partnerships [19][62] - The company acknowledged potential concerns regarding memory shortages in the mobile market but emphasized proactive planning to mitigate risks [66] Other Important Information - The company announced a one-time tax benefit in Q4 2025, resulting in a 2% effective tax rate [22] - A lease extension for the Newport Beach facility was secured, extending the lease until the end of 2030 [81] Q&A Session Summary Question: Clarification on NVIDIA collaboration - The company clarified that it does not ship directly to NVIDIA but through resellers, focusing on output parameters for photonics [32][42] Question: Capacity increase for silicon photonics - The company confirmed that the planned capacity increase includes demand from NVIDIA and partners [34] Question: Concerns about high voltage capabilities for AI servers - The company stated it does not currently have an 800-volt platform on an IC but has higher voltage IC capabilities [39] Question: Timeline for CapEx investments - Management indicated that the majority of the $920 million investment should be online by the third quarter of 2026, with some growth expected earlier [50][60] Question: Expectations for silicon photonics contribution - The company expressed confidence in meeting demand and operational execution for silicon photonics in 2026 and 2027 [56][62]