Tower Semiconductor (TSEM.O) forecast fourth-quarter revenue above Wall Street estimates, citing surging demand for its chips used in AI infrastructure and data centers, which pushed its shares up 15% to a two-decade high.
The Israeli chipmaker expects Q4 revenue of $440 million, plus or minus 5%, compared to analysts’ forecast of $434.4 million, according to LSEG.
CEO Russell Ellwanger said demand for high-speed optical data transmission is fueling growth, adding that Tower is investing an extra $300 million to expand its Silicon-Germanium and Silicon Photonics production capabilities — critical for powering next-generation cloud networks.
Tower’s manufacturing footprint spans Israel, the U.S., Italy, and Japan, serving clients across automotive, industrial, consumer electronics, and communication sectors.
The company reported third-quarter revenue of $395.7 million and earnings of 55 cents per share, both slightly above analyst estimates.
The results reinforce Tower’s position as a key player in the semiconductor supply chain as global cloud providers ramp up spending on AI data centers and advanced chip technology.
