Tower Semiconductor’s $1.3B Revenue Addition Gets Retail Buzzing – TSEM Stock’s Massive Surge Puts It On Track To Hit Over A Decade High

• Tower Semiconductor has secured $290 million in upfront customer payments to reserve future manufacturing capacity.
• The company is expanding production capacity to support its 2028 earnings goals.
• Tower Semiconductor reported a 15% increase in first-quarter revenue to $414 million, beating Wall Street’s estimates of around $411 million, according to Fiscal.ai

Shares of Tower Semiconductor (TSEM) soared more than 18% in pre-market trading on Wednesday following the company’s major silicon photonics agreements, which are expected to deliver $1.3 billion in revenue in full-year 2027, and a stronger-than-expected first-quarter earnings performance.

TSEM shares are on track to hit their highest levels since August 2012, when the firm implemented a 1-for-15 reverse stock split.

Tower To Ramp Up Production Capacity

As part of the agreements, Tower Semiconductor has already secured $290 million in upfront customer payments to reserve future manufacturing capacity. The company expects demand to strengthen further, backed by a larger wafer supply commitment for 2028 and additional customer prepayments scheduled by January 2027.

Tower Semiconductor currently serves more than 50 active silicon photonics customers across a wide range of applications and industries. To meet growing demand, the company is expanding production capacity across its global manufacturing network, a move that supports its long-term strategy to reach $2.8 billion in revenue and $750 million in net profit by 2028.

TSEM’s Q1 Tops Wall Street Estimates

Tower Semiconductor reported a 15% increase in first-quarter (Q1) revenue to $414 million, beating Wall Street’s estimates of around $411 million, according to Fiscal.ai. Net profit came in at $65 million, or $0.57 diluted earnings per share, compared to consensus estimates of $0.56 per share.

The company expects to post a record quarterly revenue of $455 million in the second quarter (Q2), with a possible 5% variation. The forecast represents a 22% increase from the same period last year.

Retail Turns Bullish On TSEM

Retail sentiment for TSEM on Stocktwits flipped to ‘bullish’ from ‘bearish’ a day earlier, while message volumes were ‘high.’

One user expects the stock to move higher from current levels.

The stock has gained more than 84% so far this year.

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