Tower Semiconductor Stock Holds Steady On Q4 Earnings Beat As Outlook Disappoints Street: Retail Stays Extremely Bullish

Shares of Tower Semiconductor Ltd. (TSEM) held steady in morning trade on Monday, gaining a little over 0.5% even as the company’s outlook for the first quarter fell below Wall Street’s expectations.

Tower Semiconductor posted an earnings per share (EPS) of $0.59 during the fourth quarter, beating consensus estimates of $0.52, according to FinChat data.

The chip maker marginally beat revenue expectations of $387.09 million, with a print of $387.19 million.

Despite this, the stock fell as Tower Semiconductor’s first-quarter guidance did not blow expectations out of the water.

The Israeli integrated circuit manufacturer guided for revenue of $358 million during the first quarter of fiscal year 2025, with a 5% upward or downward range, compared to an estimate of $355.54 million.

TSEM noted that it has discontinued production of chips using the legacy and lower margin Fab 1 process, moving to the higher margin Fab 2 process now.

The company also said it is working on increasing its production shipments, with its capacity expansions now in the “final stages of customer qualifications.”

“Our 2025 revenue target is year-over-year growth, with sequential quarter-over-quarter revenue growth, and an acceleration in the second half of the year,” said Russell Ellwanger, CEO of Tower Semiconductor.

Retail sentiment on Stocktwits around TSEM’s stock edged lower but remained in the ‘extremely bullish’ (76/100) territory.

Tower Semiconductor’s stock price has surged more than 26% over the past six months, while its one-year gains stand at nearly 60%.

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