Movement Alert|Tower Semiconductor Falls 5.08% in Regular Trading, Semiconductor Sector Broadly Under Pressure After Prior Rally

Market Focus07-16 21:53

On July 16, Tower Semiconductor fell 5.08% in regular trading, trading at $237.87/share, with turnover of $64.96 million. The decline comes after the stock surged approximately 17% on July 14 and added another 5% on July 15 following the company's announcement of a $3-4 billion strategic capacity expansion in Japan.

The broader semiconductor sector experienced widespread selling pressure on July 16, with Micron Technology down 4.54%, Intel down 3.84%, Advanced Micro Devices down 3.34%, Taiwan Semiconductor Manufacturing down 2.26%, and NVIDIA down 2.15%. Tower Semiconductor's pullback was steeper than most peers, suggesting profit-taking following its outsized gains earlier in the week.

The company had announced a major investment to expand 300mm silicon photonics, silicon germanium, and advanced packaging capacity at its Japan facilities, supported by approximately $1 billion in Japanese government grants. Tower simultaneously raised its 2028 revenue target to $3.6 billion and net profit target to $1.2 billion, representing increases of 29% and 60% respectively. The next earnings report is expected on August 4, with consensus EPS of $0.69.

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