Tower Semiconductor Analyst Raises Forecast On 'Aggressive AI-Levered Demand'

Zinger Key Points
  • Tower Semiconductor reports sales of $371M and EPS of 57 cents, higher than consensus estimates.
  • The company announces Q4 guidance $9M higher than consensus.

Tower Semiconductor Ltd TSEM tanked in trading on Thursday, after the company reported upbeat third-quarter results.

The company reported strong results and announced higher-than-expected guidance on "aggressive AI-levered demand," according to Benchmark.

Analyst Cody Acree reiterated a Buy rating on Tower Semiconductor while raising the price target from $55 to $60.

The Tower Semiconductor Thesis: The company reported sales of $371 million and earnings of 57 cents per share, higher than consensus of $370 million and 53 cents per share, respectively, Acree said in the note.  

Check out other analyst stock ratings.

Tower Semiconductor announced its December quarter revenues about $9 million higher than consensus on robust demand from "its broader RF (Radio Frequency) business, which includes both RF Mobile, RF SOI switches for the smartphone market, and RF Infrastructure demand for Data Center connectivity applications," the analyst stated.

"With solid customer demand increasing for its SiGe and SiPho products for optical transceivers servicing AI Data Center applications, Tower is undertaking a new $350 million capacity expansion initiative, where it is planning to invest in multiple existing factories to significantly increase its ability to meet rapidly increasing customer forecasts," he further wrote.

TSEM Price Action: Shares of Tower Semiconductor had declined by 4.81% to $46.09 at the time of publication on Thursday.

Read More:
Paymentus Posts Better-Than-Expected Earnings, Joins Dave, Honest Company, Natera, CAVA Group And Other Big Stocks Moving Higher On Wednesday

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorEarningsEarnings BeatsLong IdeasPrice TargetReiterationAnalyst RatingsMoversTechTrading IdeasBenchmarkCody AcreeExpert IdeassemiconductorStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!