Tower Semiconductor Is Well Positioned In The 'Early Days Of The Next Industry Upcycle,' Says Bullish Analyst

Tower Semiconductor Ltd TSEM on Wednesday reported mixed results for the first quarter.

The company's RF Infrastructure business continued to deliver strong growth driven by dataceter and AI expansions, according to Benchmark.

The Tower Semiconductor Analyst: Analyst Cody Acree maintained a Buy rating and price target of $60.

The Tower Semiconductor Thesis: The RF Infrastructure business grew from accounting for 14% of the company's revenues last year to 22% in the first quarter, Acree said in the note.

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Tower Semiconductor's first-quarter revenues grew to $358.2 million, up 9% year-on-year and 6% sequentially, he added.

The revenues came in-line with expectations due to the high degree of visibility afforded by "virtually 100% of any given quarter booked in the prior periods," the analyst stated. The company's earnings came in at 45 cents per share, beating consensus by 7 cents per share, he said.

"With a high degree of management's enthusiasm regarding its expected continued business momentum, we believe Tower is well positioned to capitalize on what we see as the early days of the next industry upcycle," Acree further wrote.

TSEM Price Action: Shares of Tower Semiconductor had declined by 0.58% to $41.90 at the time of publication on Thursday.

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