Intel's Acquisition Target Tower Semiconductor Stock Is Trading Higher Wednesday - Here's Why

Tower Semiconductor Ltd (NASDAQ: TSEM) stock is trading higher after it reported a second-quarter FY23 revenue decline of 16.2% year-on-year to $357.2 million, beating the consensus of $354.5 million.

Gross profit was $86.5 million, down by 23.1% Y/Y. Operating profit declined by 28.5% Y/Y to $50.5 million.

It generated $75 million in operating cash flow and held $913.6 million in cash and equivalents.

EPS of $0.46 missed the consensus of $0.49.

On February 15, Intel Corp INTC agreed to acquire Tower Semiconductor at a 60% premium. Due to its impending acquisition, Tower Semiconductor stopped providing financial guidance.

Price Action: TSEM shares traded higher by 11.70% at $38.85 premarket on the last check Wednesday.