Tower stock analysis
Tower (TOW) Stock Price & Analysis
TOW Stock Chart & Stats
- Day’s Range
- EUR 134.00 - EUR 137.00
- 52-Week Range
- EUR 77.10 - EUR 276.00
- Previous Close
- EUR 128.00
- Volume
- N/A
- Average Volume (3M)
- 35
- Market Cap
- EUR 15.10B
- Enterprise Value
- EUR 24.71B
- Total Cash (Recent Filing)
- EUR 1.47B
- Total Debt (Recent Filing)
- EUR 153.73M
- Price to Earnings (P/E)
- 48.5
- Beta
- 0.23
- Next Earnings
- Feb 17, 2027 (Est.)
- EPS Estimate
- 1.25
- Next Dividend Ex-Date
- N/A
- Dividend Yield
- N/A
Bulls Say, Bears Say
Bulls Say
Record Growth And Margin Expansion
Strong revenue and profit growth demonstrates accelerating demand across Tower’s specialty foundry portfolio. The concurrent expansion in gross, operating, and net profit indicates improving operating leverage and earnings quality, supporting a stronger business base over the next several quarters.
Customer-backed Capacity Visibility
Multi-year customer commitments extending through 2029 provide unusual visibility for a cyclical foundry business. Pre-committed capacity should support utilization, reduce demand uncertainty around expansion spending, and help Tower convert new manufacturing capacity into durable revenue.
Differentiated Silicon Photonics Position
Early production of near-package optics with a major technology partner validates Tower’s silicon photonics manufacturing capabilities and process scale. Broader adoption of these platforms could deepen customer relationships and strengthen Tower’s position in AI connectivity and advanced optical applications.
Bears Say
Rising Silicon Photonics Competition
Increasing competition could pressure Tower’s future market share, pricing power, or customer acquisition costs in strategically important silicon photonics and SiGe markets. Even with strong industry growth, more qualified suppliers may make sustained leadership and margin protection harder.
Depreciation May Reduce Incremental Margins
As expansion equipment enters service, depreciation will weigh on reported profitability and reduce the unusually high incremental margins achieved in the latest quarter. This creates a lasting execution challenge: Tower must ramp utilization and revenue quickly enough to absorb the added fixed-cost base.
Free Cash Flow And Earnings Cyclicality
Operating cash conversion is strong, but volatile or negative free cash flow reflects the funding demands of expansion and potential working-capital swings. Combined with historically cyclical profitability, this may limit discretionary cash available for flexibility, investment, or shareholder returns.
TOW FAQ
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Tower Stock Smart Score
Company Description
Tower
Tower Semiconductor Ltd. operates as a prominent independent semiconductor foundry, engaged in the worldwide production and sale of analog-intensive, mixed-signal semiconductor components. The company provides a comprehensive suite of customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensors, integrated power management solutions, and MEMS. Furthermore, it offers wafer fabrication services, a design enablement platform to streamline the development process, and specialized services for process transfer optimization and new product development. Tower Semiconductor caters to both integrated device manufacturers and fabless companies, with its products serving a wide range of industries such as consumer electronics, computing, telecommunications, automotive, industrial, aerospace, defense, and medical devices. Established in 1993 and based in Migdal Haemek, Israel, its market reach extends across the United States, Japan, other Asian regions, and Europe.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Russell C. Ellwanger
- Employees
- 5,613
- Website
- towersemi.com
- Address
- Ramat Gavriel Industrial Park, Migdal Haemek, HZ, 2310502, IL
Tower (TOW) Earnings & Revenues
TOW Company Deck
TOW Earnings Call
Earnings Call SentimentPositive
The call was strongly positive, characterized by record revenue and profitability, accelerating silicon photonics and silicon germanium demand, high fab utilization, customer commitments extending through 2029, and capacity investments progressing ahead of schedule. Management also highlighted meaningful opportunities in NPO, integrated lasers, CPO and other advanced technologies. The main cautions were increased competition, expected depreciation-related moderation in incremental margins, RF mobile transition-related requalification, and uncertainty around the exact timing of Track-2 and NPO adoption.
View all DE:TOW earnings summariesTOW Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 5 | 5 | 12 |
| Technical Analysis | 3 | 5 | 2 |
| Moving Averages | 2 | 0 | 10 |
