From the beginning of this year until June, the current year through June, Tower Semiconductor’s (TASE: TSEM; Nasdaq: TSEM) stock surged by approximately 170% to reach a peak, but since then, up until the end of last week, the stock has lost 41.8% of its value. On Friday, the stock fell by 11.4%. The chip manufacturer from Migdal Ha’emek is currently traded on Nasdaq and the Tel Aviv Stock Exchange at a market cap of $18.9 billion, about $14 billion below the June peak.
There has been no apparent significant change in Tower’s actual operations since that peak, but the company is heavily influenced by general sentiment in the semiconductor market. On Friday, the Philadelphia Semiconductor Index (SOX) fell by 7.2%, led by Intel, which plummeted 28.6% and dragged other sector stocks down with it. Since its June peak, the index has declined by 27%.
Tower Semiconductor, headed by Russell Ellwanger, is set to release its third-quarter financial results tomorrow (Monday). According to the analyst consensus, the company will report revenue growth of 32% in comparison with the third quarter of 2025 to $522 million, with earnings per share nearly doubling to $1.07. In the previous quarter, Tower’s sales hit a record that surpassed the analysts’ estimates, and the company recently announced an upward revision of its 2028 targets, following investment in Japan designed to expand its production capacity.
According to "The Wall Street Journal," 10 analysts maintain positive ratings on Tower Semiconductor. One is neutral, and their average target price reflects an 88% premium, approaching the peak price reached in June. After the release of the company’s quarterly financials, however, some analysts may adjust their target prices to better reflect current market multiples.
Published by Globes, Israel business news - en.globes.co.il - on November 1, 2026.
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