A Look At Tower Semiconductor's (NasdaqGS:TSEM) Valuation After Record Q4 Guidance And US$650 Million Expansion Plan

Simply Wall St.01-30 20:51

Tower Semiconductor (NasdaqGS:TSEM) is back in focus after management outlined record fourth quarter revenue guidance and a US$650 million capacity build out in photonics and SiGe, aimed at AI, 5G and...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2607404022?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8212000-choice2-main-header/1585186783100","is_english":true,"pubTime":"2026-01-30 20:51","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2607404022","market":"hk","top_or_hot":-1,"title":"A Look At Tower Semiconductor's (NasdaqGS:TSEM) Valuation After Record Q4 Guidance And US$650 Million Expansion Plan","media":"Simply Wall St.","content":"<div>\n<p>Tower Semiconductor (NasdaqGS:TSEM) is back in focus after management outlined record fourth quarter revenue guidance and a US$650 million capacity build out in photonics and SiGe, aimed at AI, 5G and...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-tsem/tower-semiconductor/news/a-look-at-tower-semiconductors-nasdaqgstsem-valuation-after\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look At Tower Semiconductor's (NasdaqGS:TSEM) Valuation After Record Q4 Guidance And US$650 Million Expansion Plan</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look At Tower Semiconductor's (NasdaqGS:TSEM) Valuation After Record Q4 Guidance And US$650 Million Expansion Plan\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-30 20:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-tsem/tower-semiconductor/news/a-look-at-tower-semiconductors-nasdaqgstsem-valuation-after><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tower Semiconductor (NasdaqGS:TSEM) is back in focus after management outlined record fourth quarter revenue guidance and a US$650 million capacity build out in photonics and SiGe, aimed at AI, 5G and...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-tsem/tower-semiconductor/news/a-look-at-tower-semiconductors-nasdaqgstsem-valuation-after\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1861220033.SGD","symbol_name":"Blackrock Next Generation Technology A2 SGD-H","start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-tsem/tower-semiconductor/news/a-look-at-tower-semiconductors-nasdaqgstsem-valuation-after","article_id":"2607404022","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8212000-choice2-main-header/1585186783100"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-tsem/tower-semiconductor/news/a-look-at-tower-semiconductors-nasdaqgstsem-valuation-after","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2607404022","pubTimestamp":1769777463,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Tower Semiconductor (NasdaqGS:TSEM) is back in focus after management outlined record fourth quarter revenue guidance and a US$650 million capacity build out in photonics and SiGe, aimed at AI, 5G and data center demand.\nSee our latest analysis for Tower Semiconductor.\nThe recent guidance and US$650 million capacity plan come on top of a strong run, with a 58.17% 3 month share price return and a very large 1 year total shareholder return of 176.73%. This suggests momentum has been building...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","TSEM":"Tower半导体","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4141":"半导体产品"},"translate_title":"在创纪录的第四季度指引和6.5亿美元的扩张计划之后，看看Tower Semiconductor（纳斯达克GS：TSEM）的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSEM":1.5},"content_text":"Tower Semiconductor (NasdaqGS:TSEM) is back in focus after management outlined record fourth quarter revenue guidance and a US$650 million capacity build out in photonics and SiGe, aimed at AI, 5G and data center demand. See our latest analysis for Tower Semiconductor. The recent guidance and US$650 million capacity plan come on top of a strong run, with a 58.17% 3 month share price return and a very large 1 year total shareholder return of 176.73%. This suggests momentum has been building even with a 3.04% 1 day share price decline to US$134.71 as traders react to sector wide swings and upcoming earnings. If this kind of AI and data center focused story has your attention, it could be a good moment to widen your search across high growth tech and AI stocks for other potential ideas. With the shares up sharply over the past year and the price now sitting close to analyst targets, the key question is whether Tower’s growth plan is already fully reflected in the valuation or if the market is still underestimating future earnings power. AdvertisementMost Popular Narrative: 0.7% Undervalued With Tower Semiconductor’s fair value modeled at about $135.71 versus a last close of $134.71, the most followed narrative sees the price sitting very close to its estimate of worth and relies on a detailed earnings and revenue roadmap to get there.  The updated analyst price target for Tower Semiconductor moves from about US$134 to roughly US$136, as analysts point to stronger RF Infrastructure connectivity positioning and SiPho demand commentary from recent research as key supports for modestly higher fair value, revenue growth, and future P/E assumptions, despite slightly softer profit margin inputs.  Read the complete narrative. Curious what sits behind that small gap between price and fair value? The narrative relies on robust revenue expansion, thicker margins and a higher future earnings multiple. Want to see which specific growth legs and profitability targets have to align for this story to hold together? Read the full narrative to see how those moving pieces add up. Result: Fair Value of $135.71 (ABOUT RIGHT) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on heavy CapEx landing at healthy utilization and on Tower avoiding technology shifts that could leave its SiPho and SiGe exposure looking too narrow. Find out about the key risks to this Tower Semiconductor narrative. Another View: Multiples Flash A Very Different Signal That near match between price and fair value tells one story, but the earnings multiple tells another. At a P/E of 77.6x, Tower trades much richer than the US Semiconductor industry at 43.3x and peers at 43.6x, and sits well above its 45.2x fair ratio. If sentiment cools, does the share price have room to reset toward that lower anchor? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:TSEM P/E Ratio as at Jan 2026 Build Your Own Tower Semiconductor Narrative If you see the numbers differently and want to stress test your own assumptions, you can create a fresh Tower Semiconductor story in just a few minutes by starting with Do it your way. A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Tower Semiconductor. Ready for more stock ideas beyond Tower? If Tower has you thinking bigger about your portfolio, do not stop here. Fresh ideas across sectors could help you spot opportunities you would otherwise miss.  Target reliable cash flow potential by scanning these 14 dividend stocks with yields > 3%, which may appeal if you prioritise regular income alongside capital growth potential. Capture the AI momentum by sorting through these 24 AI penny stocks, which focus on areas like model training, inference hardware, and data infrastructure. Explore emerging themes with these 24 quantum computing stocks, which sit at the intersection of computing, security, and advanced research.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Tower Semiconductor might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2607404022","isCrawlerRequest":true}